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A series of methodological improvements to the Consumer Price Index that will continue into 1999 is expected to add about half a percentage point to measured productivity growth, raising the economy's sustainable rate of GDP growth from between 2 percent and 2.25 percent to between 2.5 percent and 2.75 percent." This will increase measured productivity growth because
a) of the inverse relationship between inflation and unemployment
b) lower inflation reduces uncertainty and increases investment, which promotes growth
c) if inflation comprises less of nominal GDP increases, real output increases must comprise more
d) this clipping is incorrect - changing the way something is measured should have no impact on growth 7
Movie tickets prices increased by 5% and resulted in a 8% drop in sales. What is the price elasticity of demand? 2. If ticket prices decreased by 5% instead of raising them, what would the changes in attendance would you expect? 3. If a competing cin..
calculate the equilibrium number of visits, and total expenditures. b) Suppose that the consumer purchases an insurance policy that allows her to pay a 25% coinsurance rate. Calculate the new equilibrium number of visits and the total expenditures..
Suppose that your business or organization has obtained a reliable growth forecast of the U.S. and local economies for calendar year 2013. Nature of my Business: I run an Automotive Paint Store that sells paint to the Independent Body Shops.
Find out what quantity of the book Warm fuzzy should print, and what price it should charge in order to maximize profit.
A price ceiling sets a maximum legal price that a seller may charge, typically placed below equilibrium. What do you think of a government placing a price ceiling the next time gasoline prices rise above $4.00 a gallon?
Explain why the cost structure associated with many kinds of information goods and services might imply a market supplied by a small number of large firms (at the same time, some internet businesses such as grocery home deliveries
The problem is about financial basics and it is explain the market value of a country's currency declines relative to value of another country's currency.
Do comparision with the economics of the two following service producing alternatives.
Find out the average total cost and average variable cost as a function of the level of output. Assuming the firm has the same cost curves in the long-run for q>0 and C (0) =0, how much will it produce in the long-run?
Summarize the article in your own words. Indicate the relevant economic concepts from the class. Create 2 discussion questions related to the article.
It goes on to say that using these three tools, the Federal Reserve influences the demand for and supply of balances that depository institutions hold at the Federal Reserve Banks, and in this way, it alters the federal funds rate. The federal fun..
Estimate the relationship among inflation and unemployment.
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