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In order to answer the questions below.
Questions:
What is inflation? What are the causes of inflation? Is inflation desirable and what can be done to control inflation in a market economy?
What is the Consumer Price Index (CPI)? How has the CPI behaved since the year 2000? What have been the causes of these changes? In your response, include a graph of the CPI for this period and cite your source.
What is the Producer Price Index (PPI)? How has the PPI behaved since the year 2000? What have been the causes of these changes? In your response, include a graph of the PPI for this period and cite your source.
What is the Consumer Expenditure Survey (CE)? How has the Survey behaved since the year 2000? What have been the causes of these changes? In your response, include a graph of the CE for this period and cite your source.
What do the measures above tell us about consumer behavior? Have incomes changed enough to offset the inflation since 2000? What can we predict about future inflation?
What are the implications of these measures for government economic policies?
Bank A offers a nominal annual interest rate of 7% compounded daily, while a bank B offers continuous compounding at a 6.9% nominal annual rate. If you deposit $3,000 with each Bank, what will be the difference in the two bank account balances after ..
Suppose a firm operates as a price taker in a perfectly competitive industry. The firm’s Total Cost function is given by TC = a + bQ +cQ2. Therefore the firm’s marginal cost is given by b +2cQ. Find an expression for the Breakeven Price.
What do we meanwhen we say that a firm is a perfect competitor in the productand labor markets? Does it have anything to do with many firmsproducing the same good with the same type of labor?
Refer to the following data on the U.S. consumer price index and answer the questions below. a. Compute the inflation rate for each year 1989-2006. b. Which years were years of inflation c. In which years did deflation occur d. In which years did dis..
Explain when we look at the macro economy the similar terms are known as Aggregate Demand
Bridget has a limited revenue and utilize only wine and cheese.
Firm ‘A’ can make either 500 flashlights or 2000 batteries.Firm ‘B’ can make either 650 flashlights or 1500 batteries.
Suppose following estimates from the 1990s of shares of income of each group. Draw a rough Lorenz curve for each country. Which has most nearly equal distribution,
1 givenux1x23x16x2ip1x1p2x2p1 4p2 5i 20a write the function for the indifference curve and graph it when u10.b write
Suppose the following information for a country: total population, 500; population under 16 years of age are institutionalized, 120; not in labor force, 150; unemployed, 23, part-time workers looking for full time jobs.
Explain the meaning of value added & its importance in the income approach. Consider the data for the selling price at each stage in the production of a 5 lb bag of flour sold by your local grocer. Use the value-added approach to calculate the fin..
Discuss the limitations of this model as an explanation of the effects of government expenditure on GDP.
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