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Monetary Policy
We are in 2012 and you have just been appointed Governor of the Central Bank of a hypothetical advanced economy, and you have to chair your first Monetary Policy meeting. The charts below display three major indicators for the economy, together with the Central Bank rate, your main policy tool (your economy operates under a free floating exchange rate regime, and the Central Bank is independent).
What should you do? Briefly but carefully explain the pros and cons.
Note: You should focus on answering the question asked, based on the information given only; there is no need or interest in second guessing which country it could be.
Suppose a new law establishes a minimum teacher salary that is 20 percent higher than the prevailing salary. How would you expect this law to affect the average quality of teachers and the taxes paid by the typical household?
Is it possible for the gross federal debt to rise in dollar terms but decline as a percentage of GDP? Explain your answer.
Illustrate what factors shift your demand for goods . Give an example of how a demand determinant shifted your demand for a good.
the area of agricultural land available in a country is fixed due to geographical characteristics of the country and
Explain why should a government be concerned with the pricing of products that a company transfers.
Use an appropriate diagram, demonstrate and describe briefly how a increase in minimum wage could result in higher employment in a monopolistic labor market.
The Xerxes Firm is composed of a marketing division and a production division. The marketing division packages and distributes a plastic product made by the production division.
suppose you know that CLS's MRT of wine of garbage disposal services is 2:1(to obtain more bags of garbage disposal services requires a reduction of one bottle of wine (keep inputs constant), and Brewster's MRS of wine for garbage disposal is 3:1.
The Optimal Scam Corporation would like to see its sales grow at 20% for the foreseeable future. Its financial statements for the current year are presented below.
Suppose you are running the food concession at the athletic events for your college. You sell hot dogs, colas, and potato chips. What are your inputs of capital, labor, and materials If the demand for hot dogs declines,
A local government is considering four possible countermeasures to reduce crimes in the municipal park. Since each option has a different program length of duration, all benefits and costs are expressed in terms of equivalent annual values.
new keynesian model with technology shocks consider a new keynesian economy with equilibrium conditions given bywhere
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