During a recession, Congress decides to stimulate the economy by providing funds to hire unemployed workers for

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During a recession, Congress decides to stimulate the economy by providing funds to hire unemployed workers for government projects. Suppose that t months after the stimulus program begins, there are N(t) thousand people unemployed, where


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a. What is the maximum number of unemployed workers? When does the maximum level of unemployment occur?


b. To avoid overstimulating the economy (and inducing inflation), a decision is made to terminate the stimulus program as soon as the rate of unemployment begins to decline. When does this occur? At this time, how many people are unemployed?

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Calculus For Business, Economics And The Social And Life Sciences

ISBN: 9780073532387

11th Brief Edition

Authors: Laurence Hoffmann, Gerald Bradley, David Sobecki, Michael Price

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