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Interest rates are at a near all-time low with the prime rate around 4.5% and the Federal Funds rate at 1.5%. This has helped to stabilize and improve the economy over the past several years, and unemployment is now at its lowest since 2001, 4.1%. Inflation has been increasing gradually and is now at 2.2% annually (seasonally unadjusted). The Fed has been gradually increasing interest rates in order to forestall potential inflation. Recently Jerome Powell replaced Janet Yellen as the Chairman of the Federal Reserve. It is still very early in his term, but does his approach to adjusting interest rates differ from the previous Chair, Janet Yellen? If you were an outside adviser to Fed Chair Jerome Powell what advice would you give to him and why?
This document contains various important questions and their appropriate answers in the subject field of Economics.
Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.
Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..
Explain each of the following using supply and demand diagrams, With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.
The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.
Draw the production possibility curve and a. Define consumer surplus and producer surplus.
The Australian government administers two programs that affect the market for cigarettes
How many tickets to sell to maximize total welfare.
The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled
Depict the von Neumann-Morgenstern utility index u in a diagram
What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution
Calculate gross national product and net national product
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