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What factors are considered in calculations of CPI? Explain your answer. Where would you find data on CPI and PPI in the United States? What does the current level of inflation tell you about the state of the US economy?
A woman made 10 annual end-of-year purchases of $1000 worth of common stock. The stock paid no dividends. Then for 4 years she held the stock. At the end of the 4 years she sold all the stock for $28,000.
Provide a graph of the Solow model, indicating the position of the golden rule level of saving (SR), and explain why it is preferred.
Using the library or the Internet, find some recent projections for the future path of the U.S. govt. debt as a percentage of GDP. What assumptions are made about (i) govt. spending, (ii) taxes, and (iii) economic growth?
Suppose the function U(x)=ln(x) where x is consumption represents your preference over gambles using an expected utility function. You have a probability δ of getting consumption xB (bad state) and a probability 1-δ of getting xG (good state).
Marty has been laid off from her job at an aircraft plant but expects to be recalled when the economy picks up.
Determine autonomous consumption expenditure, autonomous investment expenditure, and the marginal propensity to consume.
The economy of the country of Upland is still recovering from a severe recession and still has an unemployment rate close to 9%. Assume that the government's only concern is to achieve full employment. 1. What type of fiscal policy would you rec..
Which nation has the absolute advantage in the production of tanks. Why is it this country.
Illustrate the notion that people are rational respond to incentives consider an experiment conducted by researchers at St. Luke's Roosevelt Hospital in New York City.
The poorest countries in the world have a per capita income of about $600 today. We can reasonably assume that it is nearly impossible to live on an income below half this level (below $300)
Suppose a firm must pay an annual tax, which is a fixed sum, independent of whether it produces any output-How does this tax affect the firm's fixed, marginal, and average costs?
the development of a new product was much lengthier and more expensive than the company's management anticipated. Consequently, the firm's top accountant and financial managers argue that the firm should raise the price of the product
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