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Define inflation. Assume that you live in a simple economy in which only three goods are produced and traded: Cashews, pecans and almonds. Suppose that on January 1st 2105, cashews sold for $12.50 per pound, pecans were $4.00 per pound, and almonds were $5.50 per pound. At the end of the year you discover that the cashew crop was lower than expected and that cashew prices had increased to $17.00 per pound, but pecan prices stayed at $4.00 and almond prices has actually fallen to $3.00. Can you say what happened to the overall “price level”? How might you construct a measure of the “change in price level”? What additional information might you need to construct your measure?
In what types of situations is conducting a census more appropriate than sampling? When is sampling more appropriate than a census?
During the given months of 2014, the Federal Reserve has continued its bond-buying program, called "Quantitative Easing 3" (QE3). During April, the Fed purchased $40 billion worth of bonds. Because of QE3, which of the answer choices gives correct po..
Hannah and Sam run Moretown Makeovers, a home remodeling business. The number of square feet they can remodel in a week is described by the Cobb-Douglas production function. Q=F (L,K) Q=10L0.5K0.5 where L is their number of workers andKis units of ca..
The report must address what income, Social Security, and Medicare taxes are and why U.S. citizens must pay them.
A firm in a purely competitive industry is currently producing1,000 unit per day at a total cost of $450. If the firm produce 800 units per days, its total cost would be $300, and if it produce 500 units per day, its total cost would be $275. What ar..
A mine is for sale for $240,000. It is believed the mine will produce a profit of $65,000 the first year, but the profit will decline $5,000 a year after that, eventually reaching zero, whereupon the mine will be worthless. What rate of return would ..
The graphical relationship between real gross domestic product (GDP) and capital is called the:
If a bank reserves of $100 million and checking deposits of $700 million, how much are the bank's: (a) required reserves? (b) excess reserves?
Determinants of the marginal productivity of labor include all the following except: Social security is a pure transfer program because: When poverty is defined by an absolute real income level, what will happen to the poverty rate if income per capi..
Nominal GDP increased from roughly $10.3 trillion in 2001 to $14.4 trillion in 2008. In the same period prices rose on average by roughly 19.78 percent. By how much did real GDP increase?
George Mackee thought of himself as bright, energetic, and [having] lots of potential. So why was this happening to me, he thought. George, married, two children, with his wife, Mary, had moved to Hondo, Texas, from El Paso four years ago and was now..
Graph the following statements using demand curves only, elucidate how whether there is a change in demand
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