Calculate the expected relation among a change
Assume you are to specify a STVC function for a nursing home. Discuss the variables you would include in the function. Calculate the expected relation among a change in each of these variables and STVCs?
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Jane purchases the food and clothing and has the utility U(F,C) = 2FC with marginal utilities MUF = 2C and MUC = 2F. Let the PF = $2 and the PC = $10. Jane faces a weekly budget constraint $500.
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How do you think you could tweak it in order to get a better measure of the relationship between GDP and unemployment if you were to redo this analysis?
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