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Assume the economy is currently at potential output and the inflation rate is 8%. Assume the federal funds rate is currently 3%a. The board of governors meets to set a new target federal funds rate. Would you expect it to be 2% or 4%?b. How would you expect the Fed to reach the new target?c. What impact would this have on the price level and real GDP in the SR and LR (use the AD/AS model).
"A characteristic of oligopolistic market is that, once the general price level is established it tends to remain fixed for an extended period of time." Discuss the economic rationale underlying this phenomenon.
How large of a tax-induced value raise would it take to decrease cigarette consumption by 20%? And Find the factors responsible for difference in elasticity.
Marty's Frozen Yogurt is a small shop that sells cups of frozen yogurt in university town. Marty have three frozen-yogurt machines.
Say there is a natural disaster which wipes out all of tomato plantation of one country. so there is a drastic increase in the price say from $6 to $15 a kilo
Ann McCutcheon is employed as a consultant to a company producing ball bearings. This company sells in two distinct markets, each of which is completely sealed off from the other.
During the last ten-years, sales revenue has increased from 25 million to 65 million. Estimate the company's growth rate in sales using the constant growth model with annual compounding.
According to the chief engineer at the Zodiac Corporation, Q=AL^a K^b, where L is the rate of labor input, Q is the output rate, and K is the rate of capital input.
Describe critically growth maximisation model of morris - Grade Level : Post Graduate Level
David Ding advertises on a local radio station. For last 6-weeks, the manager has kept records of the number of minutes of advertising that were bought, and the sales for that week.
The Alex Corporation uses two inputs, A and B, to produce boats. The production function for boats is given through
Coca-Cola and PepsiCo are leading competitors in market for cola products. In 1960 Coca-Cola introduced Sprite, which today is the worldwide leader in lemon lime soft drink market and ranks fourth among all soft drinks worldwide.
Carefully describe what will happen as we move from short run to a long run equilibrium in a monopolistically competitive industry if companies are making a positive profit in the short run.
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