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Suppose that the residents of Greenland play golf incessantly. In fact, golf is the only thing that they spend their money on. They buy golf balls, clubs, and tees. In 2010, they bought 1,000 golf balls for $2.00 each, 100 clubs for $50.00 each, and 500 tees for $0.10 each. In 2011 they bought 1, 100 golf balls for $2.50 each, 75 clubs for $75.00 each, and 1,000 tees for $0.12 each.
What was the CPI for each year?
What was the inflation rate in 2011?
The government wants to decrease the consumption of electricity by 10 percent. The price elasticity of demand for electricity is -0.4.
Give two conditions that are important to the efficient market theory. List one implication of the efficient market theory.
a private-garage owner is currently charging his customers 1.75 per hour. but he is considering changing the way he
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Describe the monetary policy tools the Federal Reserve uses to stabilize the economy and maintain price stability. Based on the information you researched from Federal Reserve publications, present and justify your own economic outlook for the next..
1. What shape did the short-run aggregate supply curve have during the 1930s, according to Keynes? Explain
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Suppose P (domestic price) and P* (foreign price) are both increasing. Now suppose that the dollar experiences a 5% nominal depreciation. a. Which country is experiencing the higher rate of inflation if the domestic currency experiences
Consider industries that demonstrate monopoly, monopolistic competition, oligopoly, and perfect competition. What is the goal of creating a brand name for each of these market structures What does the brand name do to the demand curve for the prod..
if the equilibrium real wage remains constant what happens to the nominal wage when the actual inflation rate exceeds
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