Log in
HomeStudy Guides420,000US230,000

ECN 101 Study Guide - Final Guide: Real Interest Rate, Loanable Funds, Real Wages

49 views3 pages
turquoisegnu128
9 Jan 2019
School
UC-Davis
Department
Economics
Course
ECN 101
Professor
All

For unlimited access to Study Guides, a Grade+ subscription is required.

Document Summary

. problem 1: neoclassical model: versions a and c: Ys = 100 x 41/2 x 161/2 = 100 x 2 x 4 = 800. Yd = c + i + g = [100 + 0. 5(800-200)] + [400 - 1000r] + 200. M*4 = p*y, so p = m*4/y = 100*4/800. Nominal wage = w/p * p = 100 * 0. 5 setting ys = yd: 800 = 1000 1000r so -200 = -1000r so. Real wage = mpl = (1/2) 100(k/l) =50(16/4) . Ys = 100 x 41/2 x 161/2 = 200 x 2 x 4 = 1600. Yd = c + i + g = [100 + 0. 5(1600-200)] + [700 - 1000r] + 200. M*4 = p*y, so p = m*8/y = 100*8/1600. Nominal wage = w/p * p = 200 * 0. 5 setting ys = yd: 1600 = 1700 1000r so -100 = -1000r so. Real wage = mpl = (1/2) 200(k/l) =100(16/4) r = 0. 10 or 10%

Get access

Grade+
$40 USD/m
Billed monthly
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
10 Verified Answers

Related Documents

ECN 101
Final Exam
Study Guide
ECN 101 Midterm: ECN 101 Midterm 1 Spring 2013 Solutions
turquoisegnu128
ECN 101
Final Exam
Study Guide
ECN 101 Study Guide - Midterm Guide: Fiscal Multiplier, Money Supply
turquoisegnu128
ECN 101
Final Exam
Study Guide
ECN 101 Final: ECN 101 Final Exam Spring 2009 Solutions
turquoisegnu128

Related Questions

Use the following table to answer questions 1 - 3.

Number of Workers Output Marginal Product of Labor Value of Marginal Product of Labor Wage Marginal Profit
0 0        
1 100   $1000 $400 $500
2   80 $800 $400  
3   60   $400 $100
4 280   $400 $400  
5   20   $400  

1. What is the market price of the final good?

A. $5

B. $6

C. $8

D. $10

2. If the firm hires two workers, the two workers together produce

A. 80 units

B. 100 units

C. 180 units

D. 200 units

3. To maximize its profits, how many workers will the firm hire?

A. 2

B. 3

C. 4

D. 5

Consider a market where demand is: P = 6 - Q and supply is S: P = Q.

1)Equilibrium quantity Qe is

a)2

b)3

c)4

d)5

2)Equilibrium price Pe is

a)$2

b)$3

c)$4

d)$5

3)Consumer surplus CS is

a)$0.5

b)$4.5

c)$12.5

d)$16.5

4)Producer surplus PS is

a)$0.5

b)$4.5

c)$12.5

d)$16.5

5)Total surplus TS is

a)$5

b)$7

c)$8

d)$9

6)Construct a budget-neutral subsidy in the above market.

Quantity Q’ is

a)2

b)3

c)4

d)5

7)Post-subsidy producer price Pp is

a)$2

b)$3

c)$4

d)$5

8)Consumer surplus CS is

a)$0.5

b)$4.5

c)$12.5

d)$16.5

9)Producer surplus PS is

a)$0.5

b)$4.5

c)$12.5

d)$16.5

10)Total surplus TS is (do not forget to account for the subsidy expenditure SE)

a)$5

b)$7

c)$8

d)$9

23. In order to have the elasticity of demand be equal to 2.5 at the point on the demand curve where Q=4 Yand P = 100, the value of b must be: ep-2.5 2.5-7dQ B) 1/5 C) 5/2 D) 2/5 F) 6/5 G) 5/9 H) 9/5 1) 4/12 J) 12/4 Ps 100 A) 8/1 E) 5/6 24