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In 2013, John Taylor wrote: "I realize that there are differences of opinion about what is the best rule to guide policy and that some at the Fed (including Janet Yellen) now prefer a rule with a higher coefficient [on the output gap]."
a. If Fed policy were guided by a Taylor rule with a coefficient of 1, rather than 0.5, on the output gap, would the federal funds rate be higher or lower during a recession? Briefly explain.
b. Why might economists and policymakers disagree over the best rule to guide monetary policy?
Analyze the main competitive forces in the your healthcare delivery system in your state, and compare the major factors that influence the fundamental manner in which these competitive forces determine prices, supply and demand, quality of care, c..
Does a monopolistic competitor produce too much or too little output compared to the most efficient level? What practical considerations make it difficult for policymakers to solve this problem?
A firm has a monopoly on a new type of gaming console. The market demand is given by P=175.3-0.003*Q and thus marginal revenue is MR=175.3-0.006*Q. The monopolist's marginal cost is MC=5.2+0.001*Q. Calculate the profit-maximizing production quantity.
Traditionally, many public utility companies (such as telephone & electric service providers) have been highly regulated. Thus, they have operated in stable environments, shielded from competition.
Aerotron Electronics is considering purchasing a water filtration system to assist in circuit board manufacturing. The system costs $40,000. It has an expected life of 7 years at which time its salvage value will be $7,500. Operating and maintenan..
Due to the size of the current budget deficit in the United States, Congress should make decisions on reducing government expenditures to present a balanced budget. One way to eliminate the deficit is to cut expenditures across the board so that the ..
Analyze the three different money models (the ATM model of demand for cash, the liquidity-preference model, and the dynamic model of money) to determine which model seems most appropriate for explaining the way money works to someone.
what is an example of either a proposed or successful vertical horizontal or conglomerate merger with which you are
demand for a good can be characterized by p 100 - q. there are two firms firm 1 and firm 2. they have identical cost
The WSJ recently reported that Juniper Networks plans to offer its more than 1000 employees opportunity to reprice their stock options.
Why is the concept of elasticity important? What does it tell economists? Tell whether you would classify automobile production as either elastic or inelastic in the short run and long run. (Keep in mind that we are talking here about supply elas..
is there a conflict in an environmentally conscious manufacturing environment? if there is is it healthy and desirable?
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