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What is a time consistency problem, in general. What is the time inconsistency problem with inflation policy? What is the Fed's Loss function? The model we used shows that inflation will be higher than would be optimal - for both the public and the Fed; this means that it is a model of "inflationary bias." How can the effects of reputation eliminate this bias. (Think about the diner/waiter game played one time only, versus being played over and over again on an on-going basis)
Describe the observed relationship between consumption’s share of output and per capita GDP. Compare and contrast the views of Chicago and Harvard Schools of thought on antitrust on the possibility of change in antitrust enforcement. Which of the fol..
Explain how the debt capacity of the governmental entity is determined. Evaluate the effect of refunding or reorganizing existing debt obligations. Analyze various funding alternatives that can be used to support debt obligations.
Consider the following situation regarding the trading partners Hong Kong, Japan, and the United States: Hong Kong’s currency is pegged to the U.S. dollar; the Japanese currency (the yen) appreciates relative to the U.S. dollar. How would Hong Kong e..
Suppose In-N-Out burgers sells only burgers, and that P and Y are the price and quantity of burgers sold. In-N-Out revenues R are given by R=P.Y. Finally, suppose P grows at 1% and Y grows at 2%. Given this information you can say that revenues grow ..
A company makes a product and it is interested in how many units per year (Q) it should produce. Its production cost is $10 per unit. The marketing department has determined that the selling price per unit would be equal to $110 minus $0.10 per unit ..
In January, root beer and orange soda each cost $1 a bottle. Judith's income is $20. She buys 5 root beers and 15 orange sodas. In February, the price of root beer falls to 50 cents, the price of orange soda increases to $2 and Judith's income remain..
If people assume that future rates of inflation will follow the pattern of inflation rates in the? past, they are said to have. As a result of crowding out in the short? run, the effect on real GDP of an increase in government spending is often.
What number of workers appears to minimize the marginal cost of pizza production assuming that each pizza worker is paid $500 per week?
Identify a personal economic decision that was driven by a behavioral bias rather than by pure rational behavior. Given your understanding of behavioral economics, how would your decision differ today?
Describe who else you will talk to in order to set the sales assumption forecast. How will you document this? How is the sales budget used to build the other budgets? Who is responsible and what standards for negotiations should be set during budge..
Wages are specified as dollars per hour of work and L represents number of workers per day. Determine total demand for plumbers in New York.
Has dollar appreciated or depreciated against the yen. Illustrate what was the least amount in dollars that your box lunch cost.
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