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The text notes that changes in oil prices can affect the inflation unemployment outcome. Explain what effect changes in oil prices may have on these two variables.
5. The introduction to this chapter suggests that unemployment fell, and inflation generally fell, through most of the 1990s. What phase (Phillips, stagflation, or recovery) does this represent? Relative to U.S. experience from the 1960s until the 1990s, what was unusual about this?
6. Suppose that declining resource supplies reduce potential output in each period by 4%. What kind of monetary policy would be needed to maintain a zero rate of inflation at full employment?
If technological change increases structural unemployment, why do most governments and economists encourage such change?
- Definition of technological change
- Definition of structural unemployment
- Impact of technological change on employment
- Impact of technological change on future production
- Impact of technological change on the economy
- How does an economy recover from structural unemployment?
- What government actions help to facilitate this recovery?
Assume that in small open economy where full employement always prevails national saving is 300. If domestic investiment is I =400-20r
a, what is real interest rate be if the economy is closed
b, if the economy is open and the world interest rate is 10 percent what will investiment?
Suppose that the firm operates in a perfectly competitive market. The market price of its product is $10. The firm estimates its cost of production with the following cost function: TC= -4Q2+Q3 + 10Q + 2
A) What level of output should the firm produce to maximize its profit?
B) Determine the level of profit at equilibrium.
C) What minimum price is required by the firm to stay in the market?
- Market research shows that for an increase in price by $1/kg, quantity demand decreased by 250 Kg.
- In addition, when the price is $1/kg, 1500 Kg of apple is demanded in the country
what is Qdx?
Suppose that the firm operates in a perfectly competitive market. The market price of its product is $10. The firm estimates its cost of production with the following cost function: TC= -4Q2+Q3 + 10Q + 2
A) What level of output should the firm produce to maximize its profit?
B) Determine the level of profit at equilibrium.
C) What minimum price is required by the firm to stay in the market?
Role of artificial intelligence in modern economy
Suppose you are monopolist and that the demand elasticity of your product is different in two markets. What would be your pricing strategy?
Which of the following statements are positive and
which are normative:
a An increase in productivity will increase living
standards.
b The government should raise taxes and spend the
money on providing additional healthcare services.
c Unemployment is efficient under some
circumstances.
d Everyone should give to charity.
You plan to upgrade your computer skills by taking a training course this summer. If you do, you won’t be able to take your usual job that pays a6,000 for the summer and you won’t be able to live at home for free. The cost of your tuition will be a2,000, equipment a200 and living costs a1,400. What is the opportunity cost of your summer training course?
