2. Suppose that as a result of an oil price increase, m increases to 0.06. What is the new natural rate of unemployment if a = 1? If a = 2? Would an increase in wage flexibility tend to weaken the adverse effect of an oil price increase?

In preparation for your Portfolio Project, spend some time reflecting on, and then writing a short paper about, the differences between the long run and the short run in macroeconomics. In your paper, address the following: • Describe the factors that affect long-run economic growth • Apply these factors in an AS/AD framework • Describe the mechanisms through which monetary policy and fiscal policy affect the economy • Apply these factors in an AS/AD framework • Discuss the tradeoff between affecting the economy in the short run and in the long run. • Based on Chapters 12, 13, 20, 21, & 22 in Principles of macroeconomics by N. Gregory Mankiw

You have saved $8,000 toward the purchase of a car costing $11,000. How long will the $8,000 have to be invested at 8% compounded monthly to grow to $11,000?

An Individual Retirement Account (IRA) has $24,000 in it, and the owner decides not to add any more money to the account other than interest earned at 5% compounded daily. How much will be in the account 27 years from now when the owner reaches retirement age?

How long will it take money to quadruple if it is invested at 8% compounded semiannually? 6.7% compounded continuously?

The buying and selling commission schedule shown in the table is from an online discount brokerage firm.Taking into consideration the buying and selling commissions in this schedule, find the annual compound rate of interest earned on the investment.

Use graphical approximation techniques or an equation solver to approximate the desired interest rate. A person makes annual payments of $1000 into an ordinary annuity. At the end of 5 years, the amount in the annuity is$5875.97. What annual nominal compounding rate has this annuity earned? Use graphical approximation techniques or an equation solver to approximate the desired interest rate. An employee opens a credit union account and deposits $100 at the end of each month. After one year, the account contains $1204.13. What annual nominal rate compounded monthly has the account earned? Use graphical approximation techniques to answer the question. When would an ordinary annuity consisting of quarterly payments of $645.05 at 6% compounded quarterly be worth more than a principal of $4400 invested at 7% simple interest?

Let the Short Run Aggregate Production Function be given by:X = F(K:N) = AK°N'-°, where A = 10$, a = ½, and K = constant = 7$5. Arrive at the total output when K is constant at 7$; do so for N, = 1N, N, = 2N, ..., Ng = 9N.a. Put in a table that includes total product and the marginal product of labor.b. Draw the total product of labor in a graph and identify at least two marginal products. What do you seehappen to output when labor input increases?

For services rendered, an attorney accepts a 120-day note for $4,100 at 7% simple interest from a client. (Both interest and principal are repaid at the end of 120 days.) Wishing to use her money sooner, the attorney sells the note to a third party for $4,140 after 30 days. What annual interest rate will the third party receive for the investment?

You can afford monthly deposits of $170 into an account that pays 3.9% compounded monthly. How long will it be until you have $7,500 to buy a boat?