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An accommodating policy response to a supply shock
A) reduces the expected inflation rate.
B) maintains a fixed growth rate of nominal GDP.
C) eliminates the additional inflation caused by the supply shock.
D) none of these
Assume that the benefits and costs of infrastructure improvements are for one time only - i.e., ignore all long run implications. What are benefits and costs of infrastructure improvements.
Illustrate what relationship exists and how might a business manager use this information to increase their profits.
If the economy is operating at a point less than full employment (as it is now), what would we want to see happen to GDP? For right now, let's just look at the C (consumption) component of our GDP equation. What would we want to see happen to consume..
Suppose that a country has no public debt in year 1 but experiences a budget deficit of $20 billion in year 2, a budget deficit of $20 billion in year 3, a budget surplus of $10 billion in year 4, and a budget deficit of $2 billion in year 5.
What determines the impact of technological change on the demand for education or skills? Assess the views about the effects of technology on the labour process. Com-pare and contrast the views of Braverman, Engerman, Leontieff, Marx, and Mokyr.
Elucidate how much profit does an individual producer make in a month. Is this a long-run equilibrium.
Given all the above factors, which candidate should be selected? (b) By how much would the estimated capital investment for the alternate candidate [the candidate not selected above in (a)] have to vary from your first decision in (a)?
There are many brands of laundry detergent, all equally effective. Would you expect the elasticity of demand for any particular brand to be high or low? Explain.
Gene has the following utility function: U = XY + 2Y, the Px = $4, the Py = $1 and I=$6. What is the slope of the budget constraint? At the optimal X* and Y* calculate and interpret the MUx/Px & MUy/Py.
Discuss how increasing your human capital may influence your ability to accept change, and readiness to learn new skills and get new jobs. Please apply the effects of human capital and technological changes as explained in the textbook when sharing y..
Using supply and demand and competitive analyses, explain what happens to a pharmaceutical company’s revenues and profits from an individual drug once it loses its patent protection. Then identify at least one strategy the company can use to mitigate..
Why does a nation experience increasing opportunity cost?
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