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CPI is the consumer prices index. It is the measure adopted by the Government for its UK inflation target. The Bank of England's Monetary Policy Committee is required to achieve a target of 2 per cent. Prior to 10 December 2003, the CPI was published in the UK as the harmonised index of consumer prices (HICP).
RPI is the retail prices index. The uses of the RPI and its derivatives include indexation of pensions, state benefits and index-linked gilts.
Inflation is the percentage change in the index compared with the same month one year previously.
Discuss the relationship between each of the following variables based on the experience of U.S. economy over the past 30 years.
Taxi fares in New York recently were increased by nearly 50%. Predict the effect on the price of taxicab medallions, the earnings of taxicab drivers and congestion in New York streets.
Make an example of a comparative advantage model by 'choosing two countries and two products.
Compute the steady state levels of population. How might we transition between these two steady states and growth during the Malthusian regime?
Determine, how the following will affect the slope of the output demand curve, and explain your results:
US cigarette makers face enormous punitive damage penalties after losing a series of class action lawsuits-What action do you suppose the cigarette companies took to avoid bankruptcy?
Given the following predictions for nominal wage increases and productivity growth, state your forecast for inflation (assume this is all the information available to make the forecast).
You are told to produce a quantity that maximizes profit. How many units do you produce and what is your profit? How many machine and labour hours are used in production?
Make a table and graph of Crusoe's production function. Find out the Marginal product of labor for Crusoe at different quantities of labor.
Global Widgets Corp is a manufacturing company that builds standardized galvanized metal benches for sports arenas and stadiums-Do you think one of these firms would be more likely to benefit from a de-centralized decision making organizational arc..
Calculate total factor productivity growth (our measure of technological progress) for each country using the growth accounting framework discussed in class.
Compute the total revenue and total economic profit at each level of output. Compute the pizza shop's marginal costs and marginal revenue level of output. What is the profit maximizing rate of output for pizza shop?
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