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The Philips Curve
Suppose the economy has been experiencing zero inflation and five percent unemployment for several years. The government decides to lower the unemployment percentage by generating some inflation. You need to do the following:
1. Using the Grapher tool, create a graph showing what the short-run effects would be and what would happen in the long run.
2. Give reasons to explain what the government would have to do to keep the unemployment rate at 3 percent.
Elucidate what you can do, if the best technology was used to produce the components of the system to achieve the .99 reliability.
Suppose you want to produce WIDGETS in your country. The international price of an imported WIDGET is $50 and pays an import tariff of $10 per unit. Three inputs are needed to produce a WIDGET.
Do the estimated coefficients have the required signs to yield a-shaped AVC curve? Discuss the significance using the p-values.
What is the opportunity cost of going to a doctor to be examined for skin cancer? Would eliminating research reduce or increase the cost of U.S. health care?
Short term Treasury bills [3 and 6 month] have current annual rates of interest around 0.5%. Use that info plus your best forecast of inflation to calculate the real rate of interest on those bills.
Elucidate Susan's analysis and recommendation. Include the equation in your analysis and find the school's elasticity coefficient.
Rise in the price of TV sets in Japan also depreciation of the dollar lead to a total increase of 9 percent in the dollar price of imported.
Given table of data comprising real GDP and its components over a number of years, compute compound annual percentage changes in real GDP (economic growth) and compute the shares in real GDP of consumption.
Describe unemployment and the unemployment rate. Might we be able to say "Job Stats: Too Good to be True?"
Suppose the price elasticity coefficient anticipation of the Christmas season. Estimated 4th quarter sales volume will be.
If the elasticity of US exports with respect to the real exchange rate is very low, will this increase in private saving have a large or small effect on the U.S. real exchange rate
Illustrate and explain the interaction of households, businesses, government and global markets in the circular flow of economic activity.
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