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Ben Bernanke has said that the Federal Reserve is going to continue its latest round of Quantitative Easing until unemployment falls to 6.5%. How fast will the economy have to grow to bring unemployment down to 6.5% by this time next year? Assume that potential output grows at 3.5% a year. How fast will it have to grow each year to reach 6.5% unemployment in 3 years (2016)?
Explain the various components of fluctuations in economy activity over time. Because economic activity fluctuates, how is longterm growth possible?
When Hallmark stores offer a product line that includes everything you need to have a Spiderman theme birthday party, what is the primary segmenting dimension that Hallmark is using? Which is the first step in market segmentation?
illustrate what types of fiscal and monetary policies are taken to stimulate the economy during the recession phase of the business cycle.
What is the sacrifice ratio in this case? What is the role of central bank credibility in disinflation process and For how many years must the central bank keep the unemployment rate above the natural rate of unemployment
Explain the effects of these shocks on the price level, real GDP, and the nominal interest rate. Use an upward-sloping, short-run supply curve in your analysis.
Explain the difference between demand pull inflation and cost-push inflation, illustrating your answer with examples of each
Make an example of a comparative advantage model by 'choosing two countries and two products.
Assuming no population growth or technological progress, find the steady state capital stock per worker, output per worker, consumption per worker and investment per worker given that the rate of saving is 20% and depreciation rate is 10%.
Illustrate what affect might our concern for the baby boomers reaching retirement age, and the smallest number.
The rising stock market implies an increase in wealth, at least as measured on paper. If we assume that some of this increased wealth gets consumed, then the rising stock market fuels an increase in aggregate demand, and may contribute to an inflatio..
Plot the production possibilities frontier in Question 1 on a graph. Measure food along the horizontal axis and tractors along the vertical axis and plot the new production possibilities frontier
In the text we mentioned how Levi Strauss price discriminates between the European and American markets. This question is designed to help you analyze this situation.
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