123
  • Member for 6 years, 11 months
  • Last seen more than a month ago
3 answers
4 votes
162 views
Binary Relations for Cobb-Douglas
Accepted answer
0 votes

I solved this: note - I use $R$ to denote the binary relation as defined above. Completeness: I claim that this $R$ is not complete for $\alpha \neq \beta$. To illustrate, I use an extreme case. ...

View answer
4 answers
5 votes
544 views
Lucas Cost of Business Cycles
0 votes

I intend this as only a comment - it is just too long for the comment section: As it stands, I think you answer your own question. Lucas quantifies the impact of recessionary cycles by calculating ...

View answer
1 answers
0 votes
747 views
Contract curve for firms with linear utility functions
Accepted answer
0 votes

1.) An economy with two agents who both have linear preferences will always have Pareto optimal points along either the right and bottom edges or the left and top edges of the Edgeworth box. Edges are ...

View answer
2 answers
4 votes
2k views
Question About Basic Supply/Demand Concepts
0 votes

Here is the chain of logic: Demand for P falls $\implies$ Price of P falls $\implies$ supply for P falls/harvest of P falls $\implies$ supply of starch falls. The supply of starch falls because ...

View answer
1 answers
2 votes
37 views
Ratios to determine company's current purchasing power
Accepted answer
0 votes

You could probably get a very good idea of a company's ability to spend money - that is, make capital investments, develop new ventures etc. - by investing its balance sheet and develop both liquidity ...

View answer
4 answers
5 votes
312 views
Explanation Rational Expectations
-1 votes

I will provide an actual answer because I strongly believe that embedding the rational expectations (RE) assumption into macroeconomic models is ridiculous. I will try to crystalize this in a ...

View answer
3 answers
4 votes
629 views
Is the labor force participation rate related more to labour supply or to labour demand? Or both?
-1 votes

Traditionally, labor force participation is best thought of as a supply-side phenomena. That is, a certain subset of our nation's population is jobless but is jobless by choice. For example, consider ...

View answer
1 2
3