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What does the Taylor rule imply that policymakers should do to the fed funds rate under the followin
What does the Taylor rule imply that policymakers should do to the fed funds rate under the following scenarios?
a. Unemployment declines due to a recovery.
b. A positive supply-side shock causes the rate of inflation to fall by 1% and output to rise by 1%.
c. The economy experiences prolonged reductions in productivity growth while actual output growth is unchanged.
d. Potential output increases while actual output remains unchanged.
e. The Fed revises its (implicit) inflation target up.
Sal's Pizza Shop has a unique recipe for pizza, and currently its optimal price is $20 per pizza at a quantity of 200 pizzas per week. Its marginal cost is $12 per pizza when it produces fewer than 180 pizzas per week.
currently fans pay ave ticket price $5 and consumes $4 worth of refreshments at the game. Management thinking of raising the ticket price to $5.50. Compute the % in 1) tickets sold 2) ticket revenue 3) total revenue from admissions and refreshment..
The market supply and demand curves in a perfectly competitive market are, respectively: Qs= 400+25p and Qd= 700-50p The representative firm,in this market, has the following cost function: Q^3-7q^2=12Q+5
You can either spend spring break working at home in Alabama for $200 a day for five days, or you can spend the week in Costa Rica where travel expenses will total $700 (food, hotel, and a plane ticket.)
Find the output level at market equilibrium.
Calculate the change in the level of real GDP demanded for each of the following values of MPC. Then calculate the change if the government, instead of reducing its purchases, increased autonomous net taxes by $10 billion
Increasing-returns Trade Theory says that nations with negligible differences in comparative-advantage have no basis for trade even if they can take advantage of massive economies of scale
The rival always prefers to select the same technology as Microsoft (because compatibility is important), while Microsoft always wants to select a different technology from its rival. Describe the equilibrium of this game.
a) If the market cannot be segmented, what is the uniform monopoly price b) If the night club can charge according to whether or not the customer is a student but is limited to linear pricing
Imagine that the current price of waste disposal is $0.025/lb and the average waste disposal is 2.40 lb/p/d. When the price was previously $0.01/lb, the average waste disposal was 2.52 lb/p/d. Assume that the marginal social cost of waste disposal..
Using data from 1988 for houses sold in Andover, Massachusetts, from Kiel and McClain (1995), the following equation relates housing price (price) to the distance from a recently built garbage incinerator (dist): fitted log(price) = 9.40 + 0.312 l..
the graying of america will substantially increase the fraction of the population that is retired in the decades to
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