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Suppose that people expect inflation to equal 3 percent, but in fact, prices rise by 5 percent. Describe how this unexpectedly high inflation rate would help or hurt the following:
a. The government
b. a homeowner with a fixed-rate mortgage
c. a union worker in the second year of a labor contract
d. a college that has invested some of its endowment in government bonds
find an article from the media internet newspapers magazines etc. on a current event that addresses an economic concept
Assume the United States government determines that the cigarette smoking creates social expenses not reflected in current price of cigarettes in the market.
Assume that an iPad in the US is $500 while in Switzerland it costs 400 Swiss Francs. Suppose the nominal Swiss Franc/Dollar exchange rate is 1.1 Swiss Francs per Dollar.
To save on gasoline expenses, Edith and Mathew agreed to carpool together for traveling to and from work. Edith preferred to travel on I-20 highway as it was usually the fastest, taking 25 minutes in the absence of traffic delays. Mathew pointed o..
Consider an exchange economy with two goods, 1 and 2, and two consumers, A and B. The consumers are initially endowed with a total of unit of each good, i.e. w1 = w1A + w1B = 1 and w2 = w1B + w2B = 1.
Elucidate the three Federal Reserve tools used to undertake a tight monetary policy.
What is the nominal GDP today What is the difference between nominal and real GDP What is the largest component of GDP What is the smallest component of GDP What is the fastest growing component of GDP and why
Illustrtae what is the value of a forward contract in terms of the current stock price, the interest rate, the delivery time.
Describe the major difference between the law of demand and the law of supply. Consider the supply and demand schedules below.
Are retail gasoline prices essentially equilibrium prices? Why or why not? In most markets, are prices typically at the equilibrium? Why or why not? What might keep prices from moving to the equilibrium?
To improve crack detection in aircrafts, U.S. Air Force combined ultrasonic inspection procedures with laser heating to identify fatigue cracks. Early detection of cracks may decrease repair costs by as much as $200,000 per year.
1.Commercial hotels cater chiefly to business travelers on the move and that's one reason why the term "transient hotel" is also used for this designation.
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