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Suppose the Happy land Bureau of Statistics indicated that the Consumer Price Index (CPI) increased 102.2 in 2017 to 105.5 in 2018. Use this information to answer the following questions:
(i) Calculate Happy land's inflation rate in 2018.
(ii) Suppose a firm borrowed money from a bank, examine the effect of inflation to the parties (firm and bank).
b) Distinguish between structural unemployment and frictional unemployment. Examine the most hard type of unemployment to address
Why the focus in interest rates and unemployment and why can they keep the interest rates low? How do bond purchases tie in with the interest rates?
Of the worlds population of 6.7 billion people ______ are scraping by on incomes that average less then $2 per day?
What is the equilibrium after aggregate supply changed? If potential GDP is $1 trillion, does the economy have an inflationary gap, a recessionary gap, or no output gap?
Suppose that the public wishes to hold $0.35 in pocket money (currency and coin) and $0.25 in time and savings deposits. Suppose that banks wish to hold $0.20 for each new dollar of transaction money received. What is the size of the transaction depo..
Assume that Sally has the following utility function: U = B2 + 4Z2. Sally’s income is $200, PB equals 1 and PZ equals 4. Determine the quantity demanded of Z. Show all of your work. (Hint: draw a couple of indifference curves prior to solving this ma..
What would be the second reason? Assume that the marginal cost curve is linear. (Hint: The second reason relates to average fixed cost)
1. How does an increase in fiscal policy affect consumers' ability to purchase the iPhone 6 plus? 2. How does a decrease in fiscal policy affect consumers' ability to purchase the iPhone 6 plus?
In addition, how would they incorporate the methodology of managerial economics to accomplish their objective?
You’ve recently learned that the company where you work is being sold for $550,000. The company’s income statement indicates current profits of $24,000, which have yet to be paid out as dividends. Assuming the company will remain a “going concern” in..
How does the concepts of microeconomics can be applied to real-world situations. How will it increase your chances of a career or life success.
A standard objection to General Equilibrium models is that their long run predictions are irrelevant because in the long run we would all be dead. Evaluate this expression in the context of fiscal and monetary policies to relieve economic stress.
q1. why does a reduction in taxes have a smaller multiplier effect than an increase in government spending of an equal
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