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1. Distinguish between policy targets, policy instruments and policy goals. Give examples of each.
2. It is often suggested that there is a trade-off between unemployment and inflation. What do you understand by this?
Two firms control the entire market for gasoline. They both have identical marginal costs of $1/gallon. The inverse demand for a gallon of gasoline is given by P(G)=10-1.5G. If they decide to collude and split the profits equally, what will each firm..
Draw a demand for money curve and a supply of money at $2 trillion. Identify the rate of interest at which people would hold this quantity of money. Illustrate the effect of an increase in the supply of money by the Fed.
Write it GAMS notation and run the program to solve the problem. Find the lowest cost way of supplying the textbook to each distribution center.
The heat loss through the exterior walls of a certain poultry processing plant is estimated to cost the owner $3,000 next year. A salesman from Superfiber Insulation, Inc., has told you, the plant engineer, that he can reduce the heat loss by 80% ..
Suppose that a firm sells in a highly competitive market, in which the going prince is $15 per unit. its cost equation is c=$25+.25Q^2 find the profit-maximizing level of out put for the firm. determine its level of profit.
Is there anything wrong with this reasoning? Discuss what is right and wrong with this conclusion.
If the company wants to make a profit of $200 above the expected cost, what should be the price of the policy?
Once a free-trade equilibrium is reached, if Brazil imposes a tariff on imports, what will be the effect on its ratio of wages to return on capital? Explain why.
Consider Good E, which, when sold in a particular country, has anequilibrium price = $10.00. The government of that country decidedthat it doesn't like that equilibrium price, and so passes alaw which prevents the product from selling for $10.00.
Suppose an emissions fee is imposed on producers. What emissions fee would induce the socially optimal quantity of the good?
research the current value of the following economic indicatorsanalyze the current macroeconomic situation.discuss
What is the current unemployment rate in the United States? What is the current rate of inflation? (Go to the Web site of the Bureau of Labor Statistics at www.bls.gov to find this information.)
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