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Examples of Money Illusion. What do the following two quotes have in common?
a. My wages are going up 5 percent a year. If only inflation weren t 5 percent a year, I would be rich.
b. My bank is paying 10 percent a year, but the 8 percent inflation rate is just eating up all my real investment gains. to the theory of William Dickens, how did this affect the natural rate of unemployment? (Related to Application 1 on page 336.)
From 1991 through 2001, Japan experienced a period of economic stagnation and price deflation known as "Japan's Lost Decade." While the Japanese economy outgrew this period, it did so at a pace that was much slower than other industrialized nation..
Your state is trying to determine how many vanity license plate it will be able to sell at various prices. Regular license plates cost $20 and the state's per-capita income is $ 30,000.00 A survey of other state's with the sme population
Suppose that the current price of oil is $60 per barrel and the quantity sold is 90 million barrels per day. Assume that the supply and demand curves for oil are linear. The current estimates of the price elasticity of supply and demand in the U.S..
Assume velocity is constant, real income is constant at Y ¯= 200 and that the demand for real money balances is given by: L(i, Y ) =Y/√i (9) (a) If expected inflation is zero, the nominal interest rateis i = 0.25 and the price level..
Ellen is downloading labor marke data for the most recentmonth, but her connection is slow and so far this is all she hasbeen able to get: UnemploymentRate: 5.0% ParticipationRate: 62.5% Not in the labor force: 60mil..
Suppose a second nation has the following data. Plot thePPC, and then determine which nation has the comparative advantagein which activity. Show whether the two nations can gain fromspecialization and trade.
Why do some people prefer that the government provide cash payments to the needy instead of in-kind transfers?
In the example given in Table 6.1, suppose Neal experiences a small increase in income. Will he allocate it to snowboarding or jazz?
In a market with annual demand Q = 100 -P there are two firms, A and B, who make identical products. Marginal costs are constant and equal 10. There are no capacity constraints. a. What is the single period cournot equilibrium
What term describes what these critics are claiming is occurring with regard to U.S.-Mexican trade as a result of NAFTA? Explain your reasoning. (See page719 of the textbook.)
What is the cost function, marginal cost function, and average cost function for each plant? b) What is the efficient scale and minimum average cost for each plant? c) What is the cost function for the firm?
Suppose that in Canada the government places a $1,500 tax on the buyers of new snowmobiles. After the purchase of a new snowmobile, a buyer must pay the government $1,500. How would the imposition of the tax on buyers be illustrated.
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