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Suppose that inflation is 2 percent, the Federal funds rate is 4 percent, and real GDP is 3.00 percent below potential GDP. According to the Taylor rule, in what direction and by how much should the Fed change the real Federal funds rate?
Provide a graph of the Solow model, indicating the position of the golden rule level of saving (SR), and explain why it is preferred.
Explain what does the transaction of a buyer and seller directly affect a third party. Is the effect a negative or positive externality.
If you could identify which the group to that each consumer belong to explain how would you go about setting prices.
Is the price elasticity of demand elastic or inelastic for that good or service. Explain how should the company alter the price of the good or service to increase revenues.
You are the manager of a firm in a new industry. You have gotten the jump on the only other producer in the market.
If a nation can make a product efficiently but there is no domestic market for that product, how can that country increas through producing that item? Discuss the determinatives of demand and supply of a product.
Identify which economic and political policies affect your firm and explain how they impact business decisions. Explain how does your firm use technology to strategic advantage.
Discuss the relationship between each of the following variables based on the experience of U.S. economy over the past 30 years.
Utilizing the company Bausch & Lomb, list at least four conditions that would change the Production Possibility Curve.
Using the aggregate demand and supply model, draw an economy in a boom with equilibrium national income above full employment GDP.
Suppose that the assumption in key concept are satisfied. Show that X i is a valid instrument. That is, show that key concept 12.3 is satisfied with Z i = X i .
Illustrate two policies could you use to reduce the total amount of emissions. Explain how would you decide what was the best level of emission reduction.
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