Economics Answers

Consider each of the following labor‐market developments. In each case, indicate whether the event raises or lowers the natural rate of unemployment, and whether that effect arises because of a change in the amount of frictional unemployment or because of a change in the amount of structural unemployment.
a) More firms start paying “efficiency wages.”

When inflation occurs who benefits more, creditors or debtors

The spread of the coronavirus in the US has had negatively effects on the US economy. GDP growth rate went negative (-5.8%) in the first quarter of 2020 and unemployment rate spiked to 14.7% in April. Use the aggregate supply model to explain short run downturn and make sure to indicate the shifts in the curve

Earlier this year, oil prices fell to historic lows. Using the aggregate demand and supply model from Chapter- Intro to Economic Fluctuations, explain the effects of this drop in oil prices on the economy in short run and long run

et us say the income elasticity of money demand is 0.5 and the interest elasticity of money demand is –0.3 (as the empirical studies suggest). What is the percentage change of the real money demand if income increases 5.5% at the same time that the interest rate decreases from 4.2% to 3.8%?

Suppose John’s demand for a good is given by P=200-1/5 Q and that marginal revenue is MR=200-0.4Q. Marginal cost and average total cost are constant at $20 per unit.
Consider the following quantity discount.
The price for the first 400 units a customer purchases is $120 per unit, but any additional units have a price of $80 per unit. How many units will John purchase?

Suppose the interest rate is 8% and a bond with annual coupon of $90 matures in one year time paying its face value of $1000. What is bond's current price?

Analyze the situation in Karachi and Lahore as reported here using demand and supply framework (with the help of graphs).
Specific requirements: Draw demand and supply curves for the market of fruits and vegetables in Karachi and Lahore (Don’t need to sketch graph for each fruit or each vegetable, just single curve for fruits and single curve for vegetables is sufficient).

Which of the following industries do you think are likely to exhibit large economies of scale? Explain why in each case.
1. Home building
2. Electric power generation
3. Vegetable farming
4. Software development

Which statement about unused accounts created in the generic Starter Chart of Accounts is true?
A.You can either rename or delete these accounts.
B. You can delete these accounts.
C. You can rename these accounts.