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The inflation rate is 10 percent, and the central bank is considering slowing the rate of money growth to reduce inflation to 5 percent. Economist Milton believes that expectations of inflation change quickly in response to new policies, whereas economist James believes that expectations are very sluggish. Which economist is more likely to favor the proposed change in monetary policy? Why?
Last year, Urbana Corporation had $197,500 of assets, $307,500 of sales, $19,575 of net income, and a debt-to-total assets ratio of 37.5 percent.
Use the price-cost formula to determine whether or not the firm's operations are productively-efficient. (e) Use the price-cost formula to determine whether or not the firm's operations are allocatively efficient.
Suppose he chooses to drive 10 hours a day explain how many hours of leisure and how much consumption does this imply.
An illegal cartel has been formed through 3-leading ready mix cement suppliers in the local market. Total costs at various levels of service a day are as follows:
Discuss briefly what you think the way in which the HDI is constructed. (Briefly means no more than five lines of text. Excesses are severely penalised.)
The MorTex organization assembles garments entirely by hand even though a textile machine exists which can assemble garments faster than a human can.
Explain briefly the advantages and disadvantages for each tool the Fed can use to manipulate the federal funds rate.
Explain how does the timing of lay-off and hiring decisions made by firms explain the misleading characteristic of this indicator.
Illustrate what are the benefits of free trade. Who are the winners and losers when the government imposes tariffs and quotas.
Calculate the multiplier and the level of equilibrium income and calculating the budget surplus
Suppose that in Question 1, the government rather than using a tariff, decides to limit the quantity of imports to 4. All the quota licenses are given to the nephew of the minister of finance (no rent seeking). Show on a new graph the outcome of t..
Show the area on the graph that would correspond to consumer's surplus earned by the typical boarder/skier with this payment scheme. Explain your answer briefly.
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