An increase in money supply causes the real interest rate to remain unchanged and the price level to rise in long-run general equilibrium.
Unlike partial equilibrium analysis, which only examines individual markets, general equilibrium analysis examines the entire economy. In an economy with several markets operating concurrently, general equilibrium illustrates how supply and demand interact and tend toward balance.
By attempting to demonstrate that the interaction of supply and demand will lead to an overall general equilibrium, general equilibrium theory seeks to explain the behavior of supply, demand, and prices in a large economy with several or many interacting markets.
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Answer:
1) What is the size of Labor force
?
60 people are full time employed + 20 people who are part-time employed + 20 people who are unemployed = 100 people
2) What is the Unemployment rate?
20 people who are unemployed / 100 people = 0.2 or 20%
the unemployment rate includes only those people who do not have a job but are willing and able to work, and are currently looking for one.
Answer:
The cost of equity raised by selling new common stock = 9.84%
Explanation:
Given values, the Trahan Company has D1 = $1.25 , P0 = $27.50, g = 5%, F = 6%
Now, the company wants to calculate the cost of equity that will be arising due to the selling of new common stocks.
Below is the calculation.
Cost of equity =
Cost of equity =
Cost of equity =
Answer
A she failed to properly assess her rick of storm damage
Explanation: