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One of the impacts that can erode the standard of living is inflation. The gov't uses the CPI to measure inflation. What is the CPI? How is it calculated? What are the uses of the information?
Suppose, initially, the interst rate parity condition holds. Then at some point, U.S. interest rates are 4 percent more than rates in the EU. a) Would you expect the dollar to appreciate or depreciate against the euro, and by how much? b) If, contrar..
If inflation turns out to be 1% over the life of the loan, what is the real interest rate? Who gains from unexpectedly low inflation, Loretta or Ted?
The Blue Dragon Restaurant is a new Chinese Restaurant in town. As the only Chinese restaurant in the area, it faces the following daily demand curve: Determine the profit-maximizing price of each meal assuming The Blue Dragon is behaving as a monopo..
What effect, if any, would each of the following have on the short-run average (ATC, AFC, AVC) and marginal costs of an auto dealership:
Because you are not an expert yet on analyzing costs and optimal production levels, you decide to do a very simple analysis of your short-run fixed and variable costs if you expand.
q. consider an economy where consumers utility function is given as uclc-12l2 . where c is consumption and l is labor.
Bob makes hand-sewn sweaters, 250 of them per year, sold for $200 each. His annual costs are: fabric for $300, thread for $50, a sewing machine that is leased annually for $40, and needles that are leased annually for $5. T
Consider a perfectly competitive market. Analyze and explain in detail using graphical tools to show what you expect to happen to number of firms and firm profitability in the short run and long run.
As per the mathematical laws that govern the relationship between average total cost and marginal cost, where must these two curves intersect.
Illustrate what percentage does equilibrium cost level differ from its initial value if output increases to Y = 106 (and r remains at 0.10).
Consider a closed economy which can be characterized by the following equations: C = 400 + 0.8YD I = 600 + 0.1y- 1000r G = 300 T = 125 (M/P)d = 0.2Y-6000r (M/P)= 400 a. Solve for the goods market equilibrium and state the equation for the AD and IScu..
What are the average money holdings when the individual makes the optimal number of trips to the bank?
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