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Problem based on Utility Function - Problem, Answer and explain the following using a diagram which is completely labeled.
How income may change savings behavior
Perfect competition guarantees allocative efficiency. A profit-maximizing monopolist can never be allocatively efficient.
Why might it be difficult for the Fed to formally adopt inflation targeting? Would inflation targeting be a good policy for the Fed in the present economic environment
The questions posed are broad and open ended so be careful to allow yourself enough research and planning time.
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..
Find the optimal (profit maximizing or cost minimizing) output of each firm. Find the price that each firm charges at the when producing the optimal output.
Exchange and markets, Demand supply and market equilibrium
Changes in government spending and interest rates
Do the estimated coefficients have the required signs to yield a-shaped AVC curve? Discuss the significance using the p-values.
Compute the expected value (revenue) from each project. Compute the coefficient of variation of each project, and find out which project should the company choose. Compute the variance and standard deviation of expected value from each project.
Answer the following questions as these general questions pertain to the specific issue selected.The questions that you will cover with respect to your choice of broad social issue in the paper are given.
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