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Suppose you have been elected to Congress. One day, one of your colleagues makes the following statement:
The Fed chair is the most powerful economic policy maker in the United States. We should not turn over the keys to the economy to someone who was not elected and therefore has no accountability. Congress should impose an explicit Taylor rule on the Fed. Congress should choose not only the target inflation rate but the relative weight on the inflation and unemployment targets. Why should the preferences of an individual substitute for the will of the people, as expressed through the democratic and legislative processes?
Do you agree with your colleague? Discuss the advantages and disadvantages of imposing an explicit Taylor rule on the Fed.
A machine operation produces bearings whose diameters are normally distributed, with a mean of .498and a standard deviation of .002. If specifications require that the bearing diameter be .500 inch +- .004 inch, what fraction of the production wil..
A-1 Box Company is planning to lease a computer system that will cost (with service) $15000 in year 1, $16500 in year 2, and amounts increasing by 10% each year thereafter. Assume the lease payments must be made at the beginning of the year.
Suppose initially (period 0) the economy is endowed with $5 (billion) of capital stock and 10 (thousand) workers (let's ignore the units). We know that saving rate s is 0.15, population growth rate n is 0.01 and depreciation rate d is 0.09.
Suppose Mary earns $13 an hour installing transistorized digital chips in electronic calculators. If you were unemployed, would you offer to work for $8 an hour to get the job Why might a profit-maximizing employer turn down your generous offer
This years weather was favorable throughout the country, and this years crop will be 110 million bushels, or 10 percent larger than last years. The price elasticity of demand for corn is 0.50.
a. The opportunity cost of 1x of moving from combination B tocombination D is 2z. b. The opportunity cost of 1x of moving from combination F tocombination D is 0z. c. The economy can never produce combination F. d. The economy can produce combination..
Is there anything wrong with health care professionals being paid to provide information about their patients to marketers? Would it make an ethical difference if they received benefits for their hospitals or other patients rather than for themselves..
Assume the supply curve for DVDs is P=2Q and demand is P=42-Q. Suppose state government levies a tax of $9 on each DVD sold, collected from the seller. What quantity of DVDs will be sold in equilibrium
Pay scales of federal government employees are determined according to each employee's government serve (GS) rating. GS-10 experienced accountants with the Government Accounting Office (GAO) were reported to earn salaries that are approximately no..
Consider A monopolist that faces the constant elasticity demand curve y(p) = p^e where e 0. ASlso assume that the monopolist pays a quantity tax of t > 0. a) verify that the demand curve is in fact of the constant elasticity variety
Suppose the production function of the economy takes only capital as input and follows the formula: Y = zKWith saving rate s, deprectiation rate d and population growth rate n, write down an equation that determines capital stock next period
The final exam is now available, and the student must do current research and use critical-thinking in responding to the question below
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