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Inflation is forecasted to remain consistent with its target over the next 1-2 years. Inflation arises when:
A. The expenditure plans of agents exceed the supply of output by firms
B. The earning plans of agents fall short of what they earn in the economy
C. The currency appreciates in the foreign exchange market
D. A and B
Determine whether the following production function exhibits constant, increasing, or decreasing returns to scale
Economists have often found that purchasing power parity gives a closer approximation to reality during periods of very high inflation than during "normal" times. can you provide an explanation for why this might be so?
Assume which one company acquires all the suppliers in the industry and thereby creates a monopoly.
A farmer owns a plot of ground also sells the right to pump crude oil from his land to a crude oil producer.
Suppose the Fed decided to purchase $50 billion worth of government securities in the open market. What impact would this action have on the economy? Specifically, answer the following questions:
How does it affect level of investment and interest rates. How does it affect individual consumer. Give at least three examples in your response.
q1. the taxing agency in your state would like to impose a sales tax in a way that minimizes deadweight loss. to
It has been claimed by a well-known papyrologist that during the 4th century the rise of prices in Egypt was a consequence of the debasement of the currency: each price rise reflected a reduction of the silver in the coins. Discuss critically.
Your firm’s research department has estimated the income elasticity of demand for Art Deco lawn furniture to be -0.85. You have just learned that due to an upturn in the economy, consumer incomes are expected to rise by 5 percent next year. How will ..
If a company wants a 20% profit, what is the minimum they will bid on the project? Given: Each modular home to be installed is $100,000. The installation is to be done by one crew over 4 years (paid $10/hour with 5% increase/year) with a learning cur..
How did the Federal Reserve let the banking system collapse in the 1930's Great Depression? Did The Fed get things right in our 2008 crisis and since then?
In its effort to reduce the time value of money, the Federal Reserve System began aggressively increasing the supply of money through Quantitative Easing. What is true and what is false about the above statement? Explain
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