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Imagine that you are elected the Chairman of the Fed and your goal is to keep both unemployment and inflation under control. This means that unemployment should be at its natural rate (e.g. 5%) and inflation at/around 2%. Can you achieve the two goals simultaneously? Why or why not? Explain in detail.
Discuss and explain the following questions using knowledge about the dynamics of Aggregate Demand and Aggregate Supply Model. What is the cause of the 2007-09 Great recession? What happened to aggregate demand and aggregate supply model during this ..
Coca-Cola and PepsiCo are the leading competitors in the market for cola products. In 1960 Coca-Cola introduced Sprite, which today is the worldwide leader in the lemon-lime soft drink market and ranks fourth among all soft drinks worldwide. If you w..
Find the following equivalent amounts if the interest rate is 8% compounded annually.
Discuss the income-distribution effects of trade a) between countries (HINT: terms of trade) and b) within countries (HINT: Samuelson).
Can you tell whether this firm is in a competitive industry. If so, can you tell whether the industry is in a long-run equilibrium.
Supply is given by the equation P=10+0.05Q. Demand is given by the equation P=600-0.05Q. Calculate the price and quantity at which the price elasticity of demand is equal to -1. How might you describe that point?
Illustrate what implications would increasing worker protections have upon the ability of American companies to compete globally.
Suppose it takes 4 hours of labor time to hang sheetrock in a room and 2 hours to tape and plaster a wall. If one person spent an entire 8 hour day hanging sheetrock, In how many rooms could sheetrock be hung? Illustrate with a production-possibiliti..
Analyze the USA financial meltdown that happened in 2008-2009. This crisis was partially caused by the reward systems that were in place for participants in the financial system. Identify the major participants in the financial system.
Goods added to inventories during a given year are: If aggregate demand grows more rapidly than aggregate supply, prices
If the CPI was 110 last year and is 121 this year, what is this year’s rate of inflation? In contrast, suppose that the CPI was 110 last year and 108 this year. What is this year’s rate of inflation? What term do economics use to describe this second..
The probability that any given unit will operate for at least (1) 39 months, (2) 48 months, (3) 60 months. (Enter your answer to 4 decimal places using probabilities shown in the above table.)
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