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What is the effect of an increase in total factor productivity on steady state population and consumption per worker in the Malthusian model?
How does the separation rate behave during recessions? What does this tell you about the source of decreases in employment during recessions?
Plot the special unemployment rates relative to the standard measure of the unemployment rate, and comment on the differences that you see.
What will be the effects on the unemployment rate, the vacancy rate, the labor force, the number of firms, the aggregate output, and the labor market tightness?
What is the basic market failure in Keynesian economics? What explains aggregate fluctuations in the Keynesian DMP model?
In the DMP model, what are the effects of an increase in the UI benefit? In the DMP model, what are the effects of an increase in productivity?
In the DMP model, what determines a consumer's decision to search for work? In the DMP model, what determines a firm's decision to post a vacancy?
Let Kt denote the quantity of capital a country has at the beginning. Calculate the quantity of capital at the beginning of years 0, 1, 2, 3, 4, ... , 10.
Calculate the Private disposable income, Transfers from the government to the private sector, Gross national product, Net exports and Gross domestic product.
Calculate the 12-month percentage increase in the consumer price index (CPI), and plot this, along with the unemployment rate.
Calculate consumption of durables, consumption of nondurables, and consumption of services as percentages of total consumption, and plot these time series.
What effect does the income tax have on consumption and labor supply? Explain your results in terms of income and substitution effects.
Given perfect substitutes, is more preferred to less? Do preferences satisfy the diminishing marginal rate of substitution property?
Suppose that w = 0.75, p = 0.8, and T = 6. Determine the consumer's optimal choice of consumption and leisure, and show this in a diagram.
Using diagrams, determine the effects of this tax change on the consumer, and explain your results in terms of income and substitution effects.
Determine the effects on consumption and labor supply, and explain your results in terms of income and substitution effects.
Draw the consumer's budget constraint, and show his or her optimal choice of consumption and leisure.
Show that the consumer is better off with a lump-sum tax rather than a proportional tax on wage income (as in question 3) given that either tax yields.
Determine the effects of the day care program on consumption, leisure, and hours worked for the consumer.
Referring to the 10-year historical period 1955-1965 discuss an example of a change in autonomous spending. Discuss the multiplier effect it had on the economy.
Find the optimal consumption in each period. What financial transactions does the consumer make?
Show diagrammatically how an individual earning income in period 1 can provide for consumption in period 2.
However, in September 2008, the Fed and the Treasury let Lehman Brothers go bankrupt. What accounts for the different decisions?
Explain how a collapse in house prices might lead to a recession. Explain how a collapse of economy's credit-granting mechanisms might lead to a recession.
What factors do you think bankers normally use to distinguish prime borrowers from subprime borrowers?