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CPI vs. GDP deflator
How do the CPI and the GDP deflator differ? Why do economists believe that the CPI overstates the rate of inflation? Is this an important problem?
Suppose that a less developed country known as LDC encourages direct foreign investment
During the period of airline regulation, the government set airline fares and regulated an air carrier's entry into and exit from particular markets.
Compute the price-cost margin for every firm and indicate which has more pricing power and why.
Use our discussion of price discrimination to justify this argument. What problems do you envisage in implementing the policy?
Explain demand for cassette players is price elastic also they are cyclical normal goods.
Government needs to eliminate the gap by changing expenditures. What policy would you suggest.
Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.
Suppose that yi receives $ 60 per day as interest on inheritance and her wage is $25 per hour, and she can work a maximum of 16 hours per day at her job. draw her daily budget constraint.
You are told to produce a quantity that maximizes profit. How many units do you produce and what is your profit? How many machine and labour hours are used in production?
Elucidate what are some economic conditions that affect the cost of money
Using indifference curve analysis, explain and show graphically the effects of higher gasoline prices on:
In an article about the financial problems of the USA today, Newsweek reported that the paper was losing about $20 million a year.
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