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Expected inflation rate
A. Suppose that the Fed Reserve adopts an inflation targe of 3% for its monetary policy. If the long run growth rate of real GDP(Y) is 2%, then at what rate would the quantity of money (or money supply) have to grow to meet this inflation target?
b. In the short run, why might the Federal Reserve miss their inflation target of 3%?
Complete the following table by computing the marginal utility per dollar for successive units of X, Y, and Z to one or two decimal places.
Given the price elasticity of demand for two products & marginal cost, determine the optimal markups and prices under third-degree price discrimination.
Elucidate the excess of cost over the marginal price at the profit maximizing price-quantity combination?
Explain how would either decision change if the government imposed a 20 percent tax on earnings and interest income. Illustrate what would happen if the government exempted interest income.
A severe drought has make a shortage of tomatoes. Jim makes his own barbeque sauce. One of the main ingredients of his sauce is fresh tomatoes.
Create an educated guess as to illustrtae you expect to happen to short-term.
Suppose in country Triniland employers are required to pay overtime at 50% above the normal wage rate for workers who work beyond 8 hours a day.
Briefly discuss and illustrate the circumstances under which the minimum wage would (1) not lead to unemployement, amd (2) not cause a reduction in the total earnings of low-wage workers who are still employed.
A monopolist faces demand curve p = 11-Q , where Q is measured in thousands of units. Compute the firm's degree of monopoly power using the Lerner index?
You are a budget analyst in a California State legislative budget committee and have been asked to prepare a policy brief on the budget issue for the state.
Consumption of apples drops from 30 pounds of apples a month to 21 pounds of apples.
Assume the new leadership in Congress decides to repeal some of the tax breaks granted to large businesses during the past several years.
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