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1 (a) The text identified three goals of macroeconomic policy: (i) Minimize unemployment, (ii) Minimize inflation and (iii) Maximize economic growth. Obviously, these goals have elements that conflict with one another. Which do you think we are doing the best job of accomplishing in the U.S. currently, and which do you think should receive greater priority? Explain, and cite relevant statistics on the economy's performance where possible. (b) In the early stage of her administration, Fed Chair Janet Yellen focused on maintaining a monetary policy of low interest rates to continue the Fed's efforts to stimulate the economy. However, the article assigned indicates she faces some longer-term challenges. Identify one of these challenges, and describe what the article said about the interaction between Fed policy and this issue. What do you think she should do with regard to the issue you identified? (c) Why would nations favor fixed vs. floating exchange rates for their currencies? Why do some developing nations have a "fear of the float?
Explain why a weighted average is more suitable than an unweighted average when trying to measure price increases. B. (i) A well known annual book was priced at £17 when published in December 2005.
What is a government budget deficit? How does afederal budget deficit affect the economy? How does it affect thelevel of investment and interest rates? How does it affect theindividual consumer? Give at least three examples in yourresponse.
Besides your pricing decisions, what are your suggested nonpricing strategies? What nonpricing strategies will you use to increase barriers to entry?
Explain why intermediate goods and services usually are not included directly in GDP. Are there any circumstances under which they would be included directly?
Assume the 3 firms compete for market share over an infinite time horizon. Each firm takes the present value of 1 dollar tomorrow to be X dollars today, where 0
use the data on u.s. real gdp below to compute real gdp per person for each year. then use these numbers to compute the
Give the utility function U(x, y) = (x-4) 1/2 (y-2)- 1/2 , what is the minimum income needed to ensure positive utility?
Explain which would you say is the correct/legal stance that Reeves could take concerning this sticky situation.
Explain why the FOMC opted to include language about the specific level of unemployment it wants before it might consider possibly increasing the Federal Funds rate. What is the expected benefit, and what might be the cost?
in the aftermath of a hurricane an entrepreneur took a one-month leave of absence without pay from her 4000 per month
How do people earn income Should you just consider what you want to do without considering what others' value, especially prospective employers Who best determines what to do for a career, when to do launch and what to accept in wages
Calculate the dividend yield, the capital-gains yield, and the total return to the stock. Express your calculation in percentage terms.
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