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Suppose that the Federal Reserve is worried about inflation. Explain the likely way that the Fed would respond to this concern.
a. Describe the tool(s) it would use to counter this concern. Be sure to offer detail to your description.
b. Explain the effect/direction (in the short run) their policy decision would have on
i. interest rates
ii. aggregate demand
iii. output
iv. unemployment
v. investment
vi. exchange rates
vii. international financial capital flows
c. Draw the 1) AD/AS, 2) loanable funds, and 3) exchange rate models to support your answers
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Describe the situation facing Lockwood at the time of the case. This should comprise the major issues facing the industry also the decisions which need to be made.
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If we operate under the assumption of ceteris paribus, what is the best linear representation of the demand faced by the firm [please provide the equation for the demand in terms of Q = a+bP].
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Explain why you agree or disagree with your results. Develop strategies to advance your career using your strengths. How can you use goal-setting to increase motivation and improve job performance?
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