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If the CPI was 110 last year and is 121 this year what is this year's rate of inflation? What is the "rule of 70"? How long would it take for the price level to double if inflation persisted at:
(a) 2 percent per year?
(b) 5 percent per year?
(c) 10 percent per year?
Illustrate Toms price elasticity of demand also what does his demand curve look like (either verbally explain the shape of the demand curve
Throughout this course we have discussed the 'agency problem' - i.e., when the interests of owners and managers are not properly aligned.
For each of the following events, state whether the aggregate demand curve would increase, decrease, or stay the same.
Do you think that the World Bank is orientating its action in a right way or not and if not, any ideas of how to redefine its action.
Describe the opportunity cost of good 1 in terms of good 2. Find out the opportunity cost of good 1 at the point where x1=1.
Explain carefully in terms of production theory why it might be that no amount of "cracking down" can increase worker productivity at CF&D.
Between your answers to parts b and c, which prices/capacity are best applied from a social welfare perspective? Why?
You are the manager of an organization in America that distributes blood to hospitals in all 50 states and the District of Columbia.
Draw a graph of the UK labour market that shows the demand for labour, the supply of labour, and the real wage rate in 1973 and 2003. Draw a graph of the UK production function in 1973 and 2003. Make sure your graph shows potential GDP in both year..
Given the following predictions for nominal wage increases and productivity growth, state your forecast for inflation (assume this is all the information available to make the forecast).
ECP 2023, Spring 2014: With reference to a diagram, show and explain how a market, left on its own, will tend toward an equilibrium in which there is neither a surplus nor a shortage of the product.
Create another diagram; once again start from an initial macroeconomic equilibrium. Explain both the SR and LR impact of a contractionary AS shock on Y. Use the appropriate diagrams and provide a brief real world example of this type of shock.
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