Calculate the postretirement benefit expense
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On January 1, 2016, Southeast amends the plan in response to spiraling health care costs. The amendment establishes an annual maximum of $3,000 for medical.
Which country has a comparative advantage in producing wheat? Why? What is the opportunity cost of wheat in each country?
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In the poor country, there are 5,000 workers who are employed as customer service representatives at a wage rate of $10 per hour.
On January 1, 2016, Gorky-Park amends the plan to provide certain dental benefits in addition to previously provided medical benefits.
Assume the postretirement benefit expense for 2016, not including the amortization of the net loss component, is $212,000. What is the expense for the year?
What does this imply about the labor-capital ratios used in production? Therefore, how do wages compare across countries?
What is the expected postretirement benefit obligation at the beginning of 2016?
Derive the savings function. Derive the government expenditure and tax multiplier. Compute equilibrium income and consumption.
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