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Suppose Joe, from part b) above, changes his expectation of inflation from 5.1% to the actual rate of inflation that is -1.2%. What is the lowest the ex-ante interest rate can go if the nominal interest rate is 2.42%, given the change in Joe's inflationary expectations
Suppose population growth rate is 0.03, inome elastiity of demand for consumption is 0.75 and inome growth rate of 0.05. what would be the growth rate of agriultural production for balaned growth of the economy.
The purpose of this problem is to study the sacrifice ratio. Assume that initially actual and natural real GDP both equal 11,000 and that the rate of inflation is 3.5 percent.
Please explain impact on economy of Government spending on Health care on interest rates, investments, employment and income in economy. Please follow sequence in question. Explain how interrelationships.
Illustrate what is the real GDP in each year, given that the price index has risen from 100 in the base year to 104.5 in Year 1 and up to 108.3 in Year 2.
Calculate the price elasticity of demand using the point formula for Px = 20 and Py = 10. Determine whether demand is elastic, inelastic, or unit elastic with respect to its own price and whether Good Y is a substitute or a complement with respect..
Decide whether the demand for paint is elastic, unitary elastic or inelastic. Explain you're reasoning also interpret your results.
When US assets are more attractive to foreign investors, what happens to demand for dollars vs demand for a foreign currency.
Each firm can monitor the other's price very closely and can respond instantly
Using information given: What is average cost of first do these of a new drug. What about marginal cost of subsequent doses? Is this consistent with behaviour of costs for an information product.
Explicate how these projected deficits will affect the US Stock and bonds. Could you explicate briefly this question thank you.
Why the incidence of the tax a consideration when government imposes this tax increase.
Why is an increase in number of varieties of a good regarded as a gain from trade. Can you think of economic disadvantages associated with greater product variety.
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