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What is a time consistency problem, in general. What is the time inconsistency problem with inflation policy? What is the Fed's Loss function? The model we used shows that inflation will be higher than would be optimal - for both the public and the Fed; this means that it is a model of "inflationary bias." How can the effects of reputation eliminate this bias. (Think about the diner/waiter game played one time only, versus being played over and over again on an on-going basis)
An energy manager has $5000 available to purchase a high efficiency air conditioner that has a life of 6 years. The manager would like to know what should be the energy cost savings needed each year to justify the purchase (a) if the interest rate is..
A no production economy has 2 consumers (A and B) who each consume two different goods (x and y). Person A is endowed with (120,270) and has a utility function Ua(Xa,Ya)=X^(2/3)Y^(1/3). The initial endowment, the IC that go through the initial endowm..
q1. americans already enjoy living standards that far exceed world averages. do we have enough? should we even try to
An automotive part must be machined to close tolerances to be acceptable to customers. Production specifications call for a maximum variance in the lengths of the parts of .0004. Suppose the sample variance for 30 parts turns out to be s² = .0005. Us..
What does the Production Possibilities Frontier show? How can it be a useful tool for explaining the tradeoffs that countries have to make between capital and consumer goods?
In any event, the difference between what is wanted and what is obtained can cause issues. In marketing implementation, we term these "intended" versus "realized" marketing strategy. When these two items are very close to one another, the implementat..
Which of the following would cause a change in supply, as opposed to a change in quantity supplied, in the market for used homes? 1. an increase in the number of buyers in the market for used homes 2. An increase in the income of home buyers. 3. A de..
From number 15 (point B), calculate the price elasticity when a hurricane strikes leading to a 1 lb. decrease in the Good X market. From number 16 (point C), calculate the price elasticity when Americans prefer Good X by 2 lbs. Calculate the price el..
Is it true that in a short-run production process, the marginal cost curve eventually slopes upward because firms have to pay workers a higher wage rate as they produce more output?
First, briefly describe the loanable funds market. Next, in the domestic economy the government is running a budget deficit and needs to borrow money. Describe what will occur in the loanable funds market.
In macroeconomics from williamson (4th edition) chapter 11 problem 7, if the number of atms increase should not it increase the credit supply? Instead of the credit demand because of an increase in R, as it’s done in this solutions manual?
How closely does the labor market for the following type of worker approximate a perfectly competitive market? What, if any, are the major imperfections in each market?
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