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Economics: The Inflation Rate
Question: Suppose the Federal government can keep the inflation rate at about 2% per year. Is this rate of inflation small enough to ignore? Or will it still be important to keep track of the differences between nominal measures of output on wages and real measures of output or wages? At this level of inflation, how long does it take for the price level to double?
Calculate the multifactor productivity figures for labor and capital together. Elucidate why these figures might be greater in the subsidiary.
Assuming individuals hold no cash (all cash is in bank vaults as reserves), calculate the simple money supply from the following reserves requirements and deposits in the systems. 5 Points each, 30 points subtotal
Bavarian Crystal Works designs and produces lead crystal wine decanters for export to international markets-What is the optimal level of production of wine decanters?
Show the first and second order condition for profit maximization. Illustrate what is the price elasticity of demand faced by this monopolist.
Maggie's utility function is and her income is $5000. Then her MRS at generic bundle (x1, x2) is 50-0.25x1. Commodity 2 is a composite good, and hence its price is unity.
Assume that an engineer is deciding either not to move to northern Virginia or remain at his current job in Milwaukee.
A tariff I ssimply a tax on imports. Use our model of the excise tax (with diagram) to expain why domistic firms request that tariff? Consider both the domestic and the foreign country in your answer
Illustrate what effects could be taken, comprising monetary and-or fiscal policies
Calculate the markup percentage also target selling price that will allow Bolus Computer Parts to earn its desired ROI of 25% on this new component.
Construct a graph showing the outputs, and prices before and after the corrective taxes were imposed.
If I told you that GDP was forecast to rise by a bit more than 3% over the next year, what would that mean to you? What should you be asking about the forecast?
Describe (in a sentence or two) the short run profit maximization condition when labour is the only variable input?
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