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What is the relationship between labor cost per unit of output and productivity? In your answer explain when labor cost per unit of output decreases and when labor cost per
Consider the market for wheat. In Econ 101, you analyze this market by finding the equilibrium price and quantity as the point where the supply curve intersects the demand curve.
Using the model of aggregate demand from Chapter discuss the effects of monetary policy on the price level and output. (At the minimum you should address movements of the aggregate demand curve, the
Suppose in the country of Kelly, which is initially closed to the outside world (ie, does not trade with other nations), output is produced in each period using just two factors, capital (K) and lab
a. What common misconception about profit should you point out in your opening statement? b. Explain how economists believe that wages are determined.
The monthly CP1 from 2000-2005 (www.bea.gov). What was the average inflation rate over the period?
The aggregate production function for this economy exhibits constant returns to scale and the marginal products of labor and capital are both subject to diminishing returns.
Does this production function exhibit diminishing returns to capital? (Assume labor and technology are constant when answering this question.) Explain your answer.
Suppose the domestic demand curve for good X in Micronesia, a small closed economy, is given by the equation P = 100 – 2Q while the domestic supply for good X is given by P = 2Q. a. Calculate
Calculate the equilibrium aggregate price level and real GDP for this economy. Do your calculations agree with your findings in part (b)?
Draw a picture of the two production function relationships you computed in parts (a) and (b) placing output on the vertical axis and labor on the horizontal axis. Verbally explain the effects
Consumption each year as a percent of nominal GDP for that year. Gross Investment each year as a percent of nominal GDP for that year.
Holding other factors constant, legislation to cut taxes in an open economy will:
Suppose an economy’s production function is given by Y = 10K1/4 L3/4. Then the ratio of labor income to capital income equals
On the graphs below, draw the market for real money balances and the LM curve you derived in question (2). Label all possible intercepts in your graphs as well as all axes. Label final values you fo
If the rate of job separation increases holding everything else constant, this will result in
Write an expression for the marginal product of capital for this production function. Do not calculate a numerical value for this, but provide a general equation for MPK.
Solve the following sets of equations for the equilibrium values of X and Y. Show your work: answers without supporting work will not receive full credit.
Draw a diagram illustrating this situation using the AD/AS model. In your diagram make sure you include the LRAS, the SRAS, the AD, and the initial equilibrium aggregate price level (P) and the init
For a small, open economy if the world interest rate is lower than the prevailing interest rate in this economy we know that this economy is running a
Given the values in part (a), calculate capital productivity. Show your work. Be sure to show the relevant units of measurement in your answer.
a. Using the graph as a reference, what is the marginal product of labor? b. Using the graph as a reference, what is labor productivity?
If Y is 1,500, what is planned expenditu re? What is inventory accumulation or decumulation? Given your answer to the last question, would you expect equilibrium Y be higher or lower than 1,500? If
a. According to the Solow model, what should be the steady-state level of capital per worker? b. What would be the "golden rule" level of capital per worker?
What is the equilibrium real interest rate? Include a graph to explain the market clearing condition. Now, suppose that Cowtopia receives advice fr om the IMF (The International Monetary Fund) to op