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Question: William Poole, president of the Federal Reserve Bank of St. Louis, recently suggested, "We may face more inflation pressure than currently shows up in the formal data. Statistical studies to detect pass-through from recent energy price increases have failed to show significant effects in U.S. price data. But stories about widespread pass-through are becoming increasingly common." Another Fed policymaker, Randall Kroszner, concluded, "We want to try to look where inflation is going. We don't want to look in the rearview mirror at what has happened to inflation."What policy making problems are these two Fed members alluding to? Why are these problems important?
QUESTION 1: A quant jock from your firm used a linear demand specification to estimate the demand for its product and sent you a hard copy of the results. Unfortunately, some entries are missing because the toner was low in her printer. Use the i..
Suppose that the supply curve (private marginal cost) for a manufactured good is given by QS = 2P ? 2 and that the demand for the product is given by QD = 10 ? 2P. Find the price and quantity in market equilibrium.
The CEO of Always Ready Round Tire has decided to open a battery division. He thinks that batteries would sell well with tires at their outlets and that Always Round's quality reputation will be transferred to the batteries.
First, discuss the decision by doctors to enter seperate markets for various specialities rather than starting a family practice. Second, discuss the monoploy that the American Medical Association holds on the production of doctors in the US and i..
Zero economic profit includes a normal return for business owner. However, how do we know that the business owner will be satisfied with zero economic profit? In other words, if a business owner is earning zero economic profit, is there another oppor..
Identify one real-life example of a market structure in your local city and relate your example to each of the characteristics of the market - Find the profit maximizing price and quantity and the resulting profit to the monopoly.
What are some things that would affect changes in supply? Discuss at least two factors and how can quantity demanded be changed - what kind of demand (elastic or inelastic) does the product that your firm produces have
governments often claim that they impose high taxes on products like cigarettes because smoking is bad for your health.
Explain the following statment: "A monopolist can control the price or the quantity sold, but cannot control both."
a profile on a company named Span Inc that provides support for new release prisoners
Discuss the different types of unemployment
In deriving LM curves, holding the real money supply constant while raising real GDP causes us to
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