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Question: In mid-2002, real growth fell from 5% in the first quarter to 1% in the second quarter, and the unemployment rate continued to rise. The stock market was down over 20%. Inflation was stable at about 2%. Many people were worried about the viability of the corporate sector because of the explosion of scandals and fraud in major corporations. However, the Federal funds rate had already been reduced to 13/4%. Even if the economy limped along at a 2% growth rate in the second half, the Taylor Rule would still suggest a funds rate of about 4%. Given this information in mid-2002 - and disregarding what we know about what happened afterward - did the Fed follow the correct policy by easing further to 1¼%?
In China, rural property is owned collectively by the village while being managed under long-term contracts by individual farmers. Why might this be a problem in terms of optimal land management, use and allocation?
China's current financial account.
But this mo tivation is not entirely appropriate, at least for the way we described Gre sham's law. Why not? How can you make Greshams law appropriate?
How did Keynesians attempt to reduce unemployment? In new macroeconomic model, what effect will an increase in aggregate supply have on prices and unemployment?
Venezuela and the case for Economic Freedom. Many Venezuelans still proclaim themselves to be "Chavistas." How do you account or explain this phenomenon?
Plot the supply and demand curves - What is the price elasticity of supply at $9.00? At $12.00 - Compute the elasticities for each of the variables. Discuss the relative impact that each variable has on demand. What implications do these calculatio..
This example helps us to think about why all three goals of the policy trilemma cannot be achieved simultaneously, at least in the long run.
Suppose that the income tax law exempt income of less than 8,000 from being taxed, taxes income between $8,000 and $20,000 at 25% rate, and taxes income greater than 20,00 at a 30% rate.Find the average tax rate and the marginal tax rate for someone ..
Suppose that Dr. Slight has $100 to spend on goods X and Y. Each good costs $1. Dr. Slight’s preferences are such that he will exchange one unit of Y for two units of X to maintain his wellbeing, regardless of how much of each he is currently consumi..
in the 1990s pfizer inc. developed a new antibiotic called trovan trovafloxacin mesylate. tests showed that in animals
The capital investment cost for a switchgrass-fueled ethanol plant with a capacity of 250,000 gallons per year is $3 million.
Is P3 the long-run equilibrium price?
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