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Suppose the Fed announces an inflation target of 3.90%. Suppose real GDP is forecasted to grow by 2.93% and that the velocity of money has been stable. What is the largest money growth rate the Fed could implement and still achieve the above mentioned inflation target?
Suppose there is a mid-year revision of GDP forecasts that lowers the expected growth rate. Ceteris paribus, what impact will this have on the rate of inflation?
A) Inflation will be higher.
B) Inflation will be lower.
C) Inflation will be the same.
D) Inflation can be either higher or lower.
Choose two real-world companies in different industries, one that you feel faces elastic demand and one that you feel faces inelastic demand. In each case, you are an economist working in the company and you have come to a conclusion of what kind of ..
An increase in the fixed cost of working will ________ labor force participation and ________ hours of work (of those working before and after the increase in the fixed cost of working) A worker is indifferent between job one lasting 4 hours a day, j..
Consider a country that was debating whether to adopt the gold standard during the heyday of that international monetary arrangement. What difference would the level at which the price of gold was set by the central bank make for the level of economi..
Why do firms in a monopolistically competitive industry advertise? Research a firm you feel would be in monopolistic competition and explain their advertising scheme in a short summary. Be sure and cite your reference.
Eastern Airlines offers coach seats on its flight from Milwaukee to New York for $250. Sales have averaged 700 per day during the last year. Eastern’s primary competitor (Continental Airlines) cut their prices from $220 to $200. The quality of travel..
Suppose that you are evaluating the market for Kellogg's cereal. The prices of Post and General Mills cereals increase. What will happen to Kellogg's cereals?
Identify and discuss the key differences between the presidential and parliamentary systems of government. Your answer should include a comparison of electoral processes which brings a party to power, how the executive and his/her cabinet are selecte..
Explain and illustrate how each of these events would affect aggregate demand, aggregate supply, and prices, then explain how you would respond with economic policies.
Over 4000 individuals called up Dr. Kalikorn and asked him to perform a new surgical procedure. Dr. Kalikorn booked 2000 of these and told the rest to seek care from another physician. What is his quantity supplied? Explain.
What are the percentage rise in the price of food also in the price of clothing. What is the percentage rise in the CPI.
Using the probability from part a, if 5,000 data sets include 10,000 random numbers, how many of these data sets would be expected to have a sample mean of at least 0.499
A population dataset is right-skewed and has a mean of 100 and a standard deviation of 5. Which of the following is true regarding the sampling distribution of the mean for a sample size of 1,000?
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