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Refer to the following data on the U.S. consumer price index and answer the questions below.Year CPI Year CPI Year CPI Year CPI1988 118.3 1993 144.5 1998 163.0 2003 184.01989 124.0 1994 148.2 1999 166.6 2004 188.91990 130.7 1995 152.4 2000 172.2 2005 195.31991 136.2 1996 156.9 2001 177.1 2006 201.81992 140.3 1997 160.5 2002 179.9
a. Compute the inflation rate for each year 1989-2006.
b. Which years were years of inflation?
c. In which years did deflation occur?
d. In which years did disinflation occur?
e. Was there hyper inflation in any year?
Describe the effects a 15 percent price increase would have on the demand for the product.
Suppose that two power plants, company 1 and 2 release sulfur dioxide (SO2) in a small urban community that exceeds the emissions standard.
Explain why do people who work at investment banks earn so much. What is the justification for capital requirements imposed by bank regulators.
Suppose there are n identical firms in a market. each firm's cost function is given by C= 240+14q^2, where q is the amount that an individual firm produces. this means that an individual firm's marginal cost is given by MC = 30q. Also, the market ..
Winston Churchill once said that democracy is the worst form of government except for all others. What did he mean in microeconomic terms Would a more viable democratic system add to or reduce the ability of government.
Assume labor's share of GDP is 70% and capital's is 30%, real GDP is growing at a rate of 4 percent a year, the labor force is growing at 2 percent, and the capital stock is growing at 3%.
Assume worker productivity increased at the rate what rate of increase in RGDP would be sustainable without increasing inflation pressures.
Elucidate why intermediate goods and services usually are not included directly in GDP. Are there any circumstances under which they would be included directly.
Describe your understanding of what makes a cost or factor relevant to economic reasoning.
Illustratr what is there is an increase in the supply of money.
Using the aggregate demand and supply model, draw an economy in a boom with equilibrium national income above full employment GDP.
Why does the assumption of independence of risks matter in the examples of insurance What would happen to premiums if the probabilities of houses burning were positively correlated Can you think of a situation where they might be negatively corr..
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