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Suppose that Abby is equally happy eating red or green apples. How much has the true cost of living increased for Abby? Compare this answer to your answers to parts (a) and (d). What does this example tell you about Laspeyres and Paasche price indexes?
What is the largest loan that the bank can make on the basis of the new deposit If the bank chooses to hold reserves of $3,000 on the new deposit, what are the excess reserves on the deposit
Suppose nominal GDP in 1999 was $100 billion and in 2001 it was $260 billion. The general price index in 1999 was 100, and in 2001 it was 180. Between 1999 and 2001, the real GDP rose by what percent.What is the unemployment rate in the United Stat..
How do you relate the most recent unemployment rate (Look for Jan, 2012 data on unemployment rate) to your conclusion of this question indicating if the US economy is in a state of full employment. Feb 2012 unemployment data will be announced on M..
A family bought a house in October 1998 for $200,000. The house was financed by a mortgage where they paid 20% of the value and the bank financed the balance of the loan at 9% annual interest compounded monthly [.0075% monthly] over a 15-year peri..
If the Federal Reserve increases the money supply, what will happen to the AS-AD diagram you drew in part (a)? Will equilibrium output move closer to the natural level?
The market for carrots is comprised of two segments: fresh market carrots, which have excellent, uniform color and a small core, and processing carrots, which are larger than fresh market carrots but still have good flavor
1,000 of them have utility functions U(x, y) = x + y and 1,000 of them have utility functions U(x, y) = min{ 2x, y}. Everybody has an initial allocation of 1 unit of x and 1 unit of y. Find the competitive equilibrium prices and consumptions for e..
What is the annual equivalent value of a geometrically increasing series of payments which has first-year base of $50,000 increasing by 10% per year for 10 years with an interest rate of 8% compounded continuously
Show that income per capita is always higher in country 2 than in country 1.
illustrate the U.S. wholesale market for roses. Show on the graph the equilibrium in that market with no international trade and the equilibrium with free trade. Mark on the graph the quantity of roses produced in the United States
Suppose an economy has 10,000 people who are not working but looking and available for work and 90,000 people who are working. What is its unemployment rate?
Given a sample of n observations, the investigator estimates β2 by calculating it as the average value of Y divided by the average value of X. Discuss the properties of this estimator. What difference would it make if it could be assumed that β1 i..
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