What is aggregate supply.

Discuss the relationship between price elasticity of demand and market power. What is Say's Law of Market? Firms with market power price above marginal cost. Discuss. Discuss the implications of market power. Discuss the Lerner Index Who criticised the classical theory of employment? Sketch the essence of Keynesian theory of income and employment. What are ex- ante investment and ex- post investment?(1 1 points) Company ABC sponsors a defined benefit pension plan. The plan formula varies based on an employee's date of hire: . Employees hired prior to January 1, 2010: Final average pay with an annual cost of living indexation after retirement Employees hired on or after January 1, 2010: Career average pay with conditional cost of living indexation after retirement (a) (6 points) Describe how the following risks differ between the two plan formulas: (i) Inflation risk (ii) Intergenerational risk (iii) Risk that participants will not retire when expected Company ABC is considering freezing the defined benefit pension plan and introducing a new defined contribution plan for future service for all employees, effective January 1, 2021. (b) (3 points) Compare and contrast the proposed plan design with respect to the risks from part (a) for the following at retirement: (i) A 25 year old employee hired after January 1, 2021 (ii) An employee hired prior to January 1, 2010 within 10 years of retirement (c) (2 points) Propose defined contribution plan features to improve employees' retirement income adequacy.(a) (6 points) Compare and contrast the Traditional and Spot Rate Approaches to calculating the following U.S. Accounting Standard ASC 715 disclosures: (i) Net Periodic Pension Cost (ii) Accumulated Other Comprehensive Income (iii) Projected Benefit Obligation You are given the following: Year 2 3 5 Expected Benefit Payments $10,000 $10,000 $8,000 $4,000 $2,000 (end of year) Spot Interest Rate 2.1% per 2.0% per 1.9% per 1.8% per 1.7% per annum annum annum annum annum The Traditional Approach interest rate is 1.91% per annum. (b) (3 points) Calculate the annual Interest Cost at the beginning of year 1 using the following approaches: (i) Traditional Approach (ii) Spot Rate Approach Show all work. (c) (/ point) Critique adopting the Spot Rate Approach in an inverted yield curve environment. No calculations required