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a) What is the difference between inflation and a relative price increase? Explain
b) If the inflation rate is 4% and the nominal rate of interest is 10%, what is the real rate of interest? Explain with an example.
Suppose that Charles, an economist from an AM talk radio program, and Dina, an economist from a university in Massachusetts, are arguing over government intervention. The following dialogue shows an excerpt from their debate:
Two identical firms compete in competition (Cournot competition) in the same market where the inverse demand is P(Q) = 100 − Q. The constant marginal cost of both firms is 10. Find the best response function for each firm. (b) What is the Cournot (si..
Fair evaluations can be difficult, especially if there has been any conflict between a manager and employee. However, there is an evaluation process called 360 that tries to eliminate bias from evaluations. Do a little research and tell me what 360 i..
gdp per capita ppp current international for sub-saharan africa and uganda between the years 1980 and 2010.1. for
Draw a supply and demand curve, label X & Y axis and show equilibrium. Show a shift in demand and supply, and why it has occurred (non-price determinants). Describe all changes. Show in two or more graphs and use 2 examples for each - supply and dema..
It is impossible for a price change to cause no substitution, income, or toal effects. If you believe the statement is false, sketch a graph demonstrating how a price change could cause no substitution, income, or total effects. A large pharmaceutica..
Suppose you own a home remodeling company. You are currently earning short-run profits. The home remodeling industry is an increasing-cost industry. In the long run, what do you expect will happen to
Jim sees commuting by bus and T as perfect substitutes (U = T + B), that is, he would exchange one commute by bus for one commute by T. The price of a bus ticket is $1.50 and the price of a T ticket is $2.00. Explain the relationship between the slo..
Discuss an increase in the personal income tax will slow the growth rate of the economy.
Given below are data on real GDP and potential GDP for the United States for the years 2003–2013, in billions of 2009 dollars. For each year, calculate the output gap as a percentage of potential GDP and state whether the gap is a recessionary gap or..
What is the socially optimal (first-best) number of firms? Assuming that the market share of each firm when there are N firms is 1/N , what is the free-entry number of firms?
If the nominal interest rate is 4 percent and expected inflation is 1 percent, what is the real interest rate? Suppose instead that the nominal interest rate is 80 percent and the expected inflation rate is 40 percent.
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