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by a suitable illustration, explain Akerlof's gift exchange motive.
why would firms not reduce the wage to accommodate unemployed labor, if the real wage is a recession?
Given the following demand equation P = 60- 2Q and the cost equation TC(q) = 100+3Q2
For the market of shoes
a. If the enterprises in this market take advantages of perfectly competitive market, find the equilibrium outputs and price.
b. If the seller in this market takes the advantages of pure monopoly, find the equilibrium outputs and price.
c. If the seller in this market takes the advantages of oligopolistic market, find the equilibrium outputs and price.
discuss the difference between unemployment in the classical and Keynesian model
Discuss the difficulties of using aggregate demand management to moderate business cycles
Following the oil price shocks of the 1970s, Keynesians concede that supply shocks can cause recessions, but it is not the main source of recessions. Discuss.
suppose that GDP is 40 billion below its potential level. It is expected that next period GDP will be 20 billion below potential and that two periods from now it will be back at its potential level. You are told that the multiplier for government spending is 2 and that the effects of the increased government spending are immediate. What policy actions can be taken to put GDP back on target each period?
You are thinking about setting up a lemonade
stand. The stand itself costs $200. The ingredients
for each cup of lemonade cost $0.50.
a. What is your fixed cost of doing business?
What is your variable cost per cup?
b. Construct a table showing your total cost,
average total cost, and marginal cost for output
levels varying from 0 to 10 gallons. (Hint:
There are 16 cups in a gallon.) Draw the three
cost curves.
In today’s economy, it’s harder for workers to get promoted. In 2006, it took an average
of 2 ½ years to get a promotion; today it takes 4 ½ years. As a result, fewer workers are willing
to boost their productivity in an effort to impress the boss and get the promotion. In 2006, 25
percent of employees said they were willing to give “an extra oomph” at work (boost their
productivity); today about 15 percent are willing to do so. Explain the connection to the Phillips
curve.
University authority has assigned you to build a model to analyze the total number of books that the
students of university want to buy from the university Bookshop. Discuss how vou are going to build a model in this
case. Discuss how we can use and apply the model you have just built.
