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A.) List the two sources of Inflation and B) how each affect either Aggregate Supply or Aggregate Demand
Define and describe the NOMINAL interest rate vs. the REAL interest rate.
Explain the Consumer Price Index and what it measures. What year is used for the BASE year?
Do increases in profits increase a firm's domestic investment? What will determine the decision?
The following table shows the hypothetical labor requirements per ton of wool and per hand-knotted rug, for New Zealand and for India. Labor Requirements per Unit New Zealand India Per ton of wool 10 hours 40 hours Per hand-knotted rug 60 hours 80 ho..
The interest paid on internally held debt: Answer is a real claim on our goods and services. is roughly 20% of the federal budget. is paid out to one group of Americans from the taxes collected from another group of Americans. is a real burden on the..
How does the lowest annual salary that must be paid by the second firm in order to attract the worker compare to the average annual salary paid under
Suppose you purchase a 30-year, zero-coupon bond with a yeild to maturity of 6%. You hold the bond for five years before selling it. If the bond's yield to maturity is 6% when you sell it, what is the internal rate of return on your invesment? If the..
If your neighbour returns from a shopping trip saying that she got a lot of consumer surplus from her purchases
Using the general model of the monetary approach to exchange rate determination, consider the following scenario: Assume that real income grows at a rate of 3% in both the home country and the foreign country and assume the money supply grows at a ra..
What is the difference between Beveridge and the BIsmarck model?
Classical economists of the 1930's did not believe that: Suppose the economy is initially in a recessionary gap and consumer and business expectations become less optimistic due to the War on Terrorism. In the long run, assuming that there is no poli..
For an 8% interest rate, which alternative should be selected? Each alternative has a 6-year useful life.
Are preferential trading agreements welfare improving? What factors determine the welfare changes of such agreement?
Do you think this particular budget cutting policy helpful to curb the growing budget deficit.
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