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Suppose you have been elected to Congress. One day, one of your colleagues makes the following statement:
The Fed chair is the most powerful economic policy maker in the United States. We should not turn over the keys to the economy to someone who was not elected and therefore has no accountability. Congress should impose an explicit Taylor rule on the Fed. Congress should choose not only the target inflation rate but the relative weight on the inflation and unemployment targets. Why should the preferences of an individual substitute for the will of the people, as expressed through the democratic and legislative processes?
Do you agree with your colleague? Discuss the advantages and disadvantages of imposing an explicit Taylor rule on the Fed.
to firms compete and they are placed in each end of a line with length 1. firm 1 at point 0 and firm 2 at point 1. the
suppose tht businesses buy a total of 100$ billion of the four resources(labor, land, capital and entreprenrial ability) from households. If households receive 60$ billion in wages, 10$ billion in rent and 20$ billion in interest
You are the manager of a monopolistically competitive firm, and your demand and cost functions are given by Q = 20 - 2P and C(Q) = 104 - 14Q + Q^2. a. Find the inverse demand function for your firm's product. b. Determine the profit-maximizing pric..
why does it usually first experience increasing returns to scale?
Computers are sold competitively. Each computer, such as a Dell or Compaq, contains an operating system, such as Windows, that is pre-loaded on the computer. Suppose that the price of computers is $2000, and the price of an operating system is $10..
Draw the resulting T P curve to scale, relating output to labour.
Professor's Overview of the Final Exam There are no readings this week. Your sole task is to answer the three questions that comprise the final exam for this course. Your answers to each of the three questions should be approximately 2-4 pages long, ..
A table saw costs $175 at a local store. You may either pay cash for it or pay $35 now and $12.64 a month for 12 months beginning 30 days hence. If you choose the time payment plan, what nominal annual interest rate will you be charged
Which sectors of the economy have been affected by it most and if there is going to be any long-term economic impact resulting from it?
Given the relationship between the level of significance and the level of confidence when you evaluate the probability of occurrence what is the level of confidence if the significance level is .08
Confirm firm 1's optimal price depends on P2 according to P1=52.5+.25P2 (Set up profit expression of profit firm 1=(p1-30)Q1 =(P1-30)(75-P1+.5P2) and set Marginal Profit = 0 to solve for P1 in terms of P2.
However, because the saw is a mechanical device, not all the boards are 120 inches long. In fact, the distribution of lengths has a various of 0.64. The saw operator took a sample of 36 boards. What is the probability the average length of the sam..
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