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Question1: Take a look at the Productivity Growth Rate over the past twenty years and over the last five years, and describe the macro-economic implications such as Potential GDP, GDP growth, inflation, etc. Describe the implications for the thresholds that economic policy makers look at, in particular the speed limit that the federal reserve puts on GDP growth when deciding to raise interest rates (remember the tradeoff between GDP growth, inflation and unemployment).
Question2: firms used to make capacity, production, inventory and staffing decisions based on long-range forecasts. Erroneous forecasts were the major cause of the boom or bust business cycle. Determine the implication of the New Economy for waste at the top, and under-utilization of resources, at the bottom of the cycle? How do you see the magnitude of future business cycles as compared to the previous cycles we have experienced, and what are the implications for long-term economic growth?
Assume that tuition prices suddenly go up 20 percent. What impact will this single price increase have on the CPI.
Describe the impact of an increase in government spending on GDP using both Keynesian and classical points of view.
Illustrate what economic events or changes will "shift" demand and supply curves, and separately "move" demand or supply along their respective curves.
Expansion and contraction are commonly utilize terms in economics and the media.
Suppose that in a city there are 100 identical self-service gasoline stations selling the same type of gasoline.
Answer the following Multiple choice questions.
Describe what effect a contractionary fiscal policy would've on the price level and real GDP starting from full employment equilibrium.
Manchester Foundry produced 45,000 tons of steel in March at a expenses of $1,150,000. In April, foundry produced 35,000 tons at a cost of $950,000.
Use graphical examine to demonstrate the gains and losses resulting from the migration of population from a low-income country to a high-income country.
Assume you flipped an honest coin 10 times and heads came up 8 times.
Describe what type of foreign investments would be best for the economy's PPF. What are the opportunity costs of these decisions.
Is the compensation scheme at your present place of employment consistent with a reasonable solution to the agent principal problem?
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