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Describe the Fed's objective function and how it can be used with an economic model to evaluate alternative monetary policies.
Why didn't policy based on the Phillips curve work to help the Fed reduce the unemployment rate to a lower level than before? What happened in the 1970s as the Fed tried to take advantage of the tradeoff between inflation and unemployment?
Which of the following is a valid reason as to why prices will not always adjust to changes in spending?
Property taxes in a particular district are 4% of the purchase price every year. If you just purchased a $250,000 home, what is the present value of all the future property tax payments? Assume that the house remains worth $250,000 forever, property ..
Max has the utility function U(x, y) = x(y + 1). The price of x is $2 and the price of y is $1. Max’s Income is $11. How much x does Max demand? How much y? If his income doubles and prices stay unchanged, will Max’s demand for both goods double?
What would happen to GDP if the government hired unemployed workers, who had been amount $TR ain unemployment benefits, as government employees and now paid them $TR to do nothing? Explain.
A certain engine lathe can be purchased for $270,000 and depreciated over three years to a zero salvage value with the SL method. This machine will produce metal parts that will generate revenues of $180,000 (time zero dollars) per year. Determine th..
Suppose the federal funds rate is 4.4 percent and you know that the Fed is following the Taylor rule. You don't know the Fed's inflation target, but the equilibrium real interest rate is 4 percent, the inflation rate is 3 percent, the weight on the G..
Equilibrium discrimination and crowding. Suppose there are two occupations, chefs and truck drivers. Draw hypothetical supply and demand graphs for men and women to both occupations assuming that some of each gender prefers each job. Now, assume that..
determine the output that would generate a total profit of $60,000 and the total sales revenues at the output level; draw the cost-volume-profit chart.
Firm incurs two types of costs of production: fixed costs and variable costs. Can you name an industry where the fixed costs are relatively high compared to the variable costs? Can you name another where the variable costs are relatively high compare..
An entrepreneur quits a job where she was earning $60,000 per year and starts her own business. In this business she is earning $20,000. What is the cost of the business? Suppose the entrepreneur is so happy being on her own that she thinks it gives ..
Based on the following data, compute the (a) unemployment rate rate (b) cyclical unemployment rate, and (c). structural unemployment
Profit is an economic ingredient that is important to the U.S. economy. Draw a picture below to illustrate how profits provide incentives in the U.S. free enterprise system.) *What would be a good picture to draw?
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