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If your nominal income rose by 5.3 percent and the price level rose by 3.8 percent in some year, by what percentage would your real income (approximately) increase? If your nominal income rose by 2.8 percent and your real income rose by 1.1 percent in some year, what must have been the (approximate) rate of inflation?
"Students almost always have the option of purcashing a used or new textbook. Although the used book is lower in quality, it also sells for a lower price. Assume that a set of new books costs $1000, and that the set of used books costs $500. Suppo..
Explain how the Central Bank can set the nominal interest rate in the money market. In addition, explain how it can use expansionary monetary policy to boost GDP if the economy is in a recession.
Suppose, on the other hand, that by eectively regulating the nancial system, the bill increases savers' condence in the nancial system. Show the consequences of the policy on this situation on a new graph, again noting changes in the equilibrium i..
You are a pharmacist in a small town. Explain how can you use this information to your advantage.
Determine the prime rate, the discount rate, and the federal funds rate and who controls these rates? What would you expect to happen in the general economy if these rates are all increased or Decreased?
A firm produces 20 units of output at a market price of #5, a marginal cost of $5, and an average cost of $3.what is the firms economic profit.
the economy of the Shire that produces cereals and swords each industry employs Hobbits, but land is specific to the production of cereals, and metal is a specific factor in the sword industry.
the marketplace in which it operates the role of government regulations of company and any issues or opportunities that the Home Depot faces.
Compute total revenue at each and every price for this demand curve.
What is the relationship between potential output and the natural rate of unemployment If the economy currently has a frictional unemployment rate of 2 percent, structural unemployment of 2 percent, seasonal unemployment of 0.5 percent.
Illustrate what are institutional arrangements. Why are they considered important fundamental determinants of economic growth and development.
EBay claims that it has only a small problem with fraud also misuse of the sytem. Does this imply that it is overinvesting in addressing potention contracting problems.
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