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From The Wall Street Journal, Thursday, December 2, 2004:
"Janet Yellen, president of the Federal Reserve Bank of San Francisco, said in a speech yesterday at Arizona State University that sustained high oil prices, business caution, the growing trade deficit, consumers' need to rebuild savings and the waning boost from tax cuts could all weigh on the expansion and create 'more opportunities for the Fed to pause.' But if those drags lift, the Fed could raise rates more rapidly."With the help of one or more AD-AS diagrams, explain how each of the factors mentioned by Yellen works to create a drag on the economy. Your answer should include a verbal explanation and graphical depiction for each factor. Be clear about the market linkage
Describe (in a sentence or two) the short run profit maximization condition when labour is the only variable input? What will happen to the labour demand if price of the output goes up?
Vulnerability Analysis
For each of the following concepts provide a definition, a complete explanation as to their significance, and a practical example.
Suppose he chooses to drive 10 hours a day explain how many hours of leisure and how much consumption does this imply.
Suppose that in the market for comic book illustrators the substitution effect dominates the income effect While visiting Comic Con.
What is likely to happen to the number of gliders sold if Emerson follows company policy and raises the glider price to that calculated in part b?
Elucidate the most important economic indicator affecting your organization and explain why.
Illustrate what are other significant impacts of globalization on the U.S. economy. World economy.
Explain all your answers below clearly, including brief definitions of each term.
Explain how could you use the concepts of marginal cost and marginal revenue to maximize profit? What information do you need to determine this.
What would he buy the health insurance at a premium cost of $1,500? Why or why not. What implications can be drawn from the analysis.
Find the velocity given that the market is in equilibrium. MD1 is the relevant curve and it is given that the real GDP is 30,000.
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