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Suppose that inflation is 2 percent, the Federal funds rate is 4 percent, and real GDP is 3.00 percent below potential GDP. According to the Taylor rule, in what direction and by how much should the Fed change the real Federal funds rate?
Small firms can discover the abilities of their workers more quickly than large ones because they can observe the workers more closely at a variety of tasks. Does it then make sense for people with high abilities to go to small firms
what is the major problem in achieving an efficient use of the worlds water if there were a global market in water, like there is in oil, how do u think the market would work would a free world market in water achieve an efficient use.
Describe a moral hazard problem your company is facing. What is the source of the asymmetric information? Suppose that every driver faces a 1% probability of an automobile accident every year. An accident will, on average, cost each driver $10,00..
Excess Reserve 300,000,000 the Money Multiplier is 10. how much additional money can the bank create?
Finding ways to improve humanity's living standards is the point of economics. Having a good measure of living standards, you may think, is therefore pretty fundamental to the discipline. For decades economists have turned to gross domestic produc..
If the government imposes consumption tax on the good that raised prices by $1, by how much will the consumer's surplus change? Show the relationship between EV, CV, and consumer surplus using compensated and uncompensated demand curves. If you your..
Beauty lotion is a skin-moisturizing product that contantains rich oils, blended especialy for overly dry or neglected skin. Product is sold in five once bottles by a wide range of retail outlets.
what is a balanced budget rule for the federal government what are the economic consequences of it (EXPLAIN) Should a candidate for a national office support such a rule
Before September 1992, the lira or DM exchange rate could fluctuate through up to 2.25% up or down. If central banks ensured that the lira or DM exchange rate band was set in this way and could not be changes,
Describe two types of specialization in production. What are the economic advantages of specialization and what are political business cycles, and how could they be created?
eBay.com is a vast auction site that is similar to a competitive market in some ways but also differs from it in others. Which of the following describes how eBay resembles a competitive market.It is easy to enter and easy to leave eBay.
Utilizing the company Bausch & Lomb, list at least four conditions that would change the Production Possibility Curve.
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