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Among central banks that practice inflation targeting, there is a debate over whether to target "headline" inflation or "core" inflation/ Headline inflation means the consumer price index for all items. Some central banks favor headline inflation as a target because promising to stabilize a widely-publicized inflation measure has maximum psychological impact on public expectations.
Core inflation means consumer price inflation with adjustments to remove the most variable prices, like those of food and energy. Some central banks favor core inflation because food and energy prices are set in world markets and are beyond the control of domestic monetary policy. Compare he rates of core and headline inflation for the most recent months and the past year
Suppose you decide to elicit high CEO effort when and if bad luck occurs by paying bonus for $500 million outcomes. Illustrate what criticism can you see with this incentive contract plan.
In a recent article, a researcher reported that he had found the demand curve for kerosene to be upward sloping.-as the price of kerosene rose the quantity demanded of kerosene increased. Illustrate what questions might you have for this researche..
If the government imposes a limit on sales of a good or service by issuing a license that gives the owner the right to sell a given quantity of the good, the difference between the demand and supply price
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Elucidate the effect this policy would have on the nation's real risk-free interest rate, nominal interest rates, real and nominal GDP.
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Providing a subsidy to correct for an overallocation of resources Providing a subsidy to correct for an underallocation of resources.
What is the inflation year over this year? What nominal or money interest rate would the investor receive?
Assume the value of equilibrium real GDP is $800 billion dollars. Assume the government increased spending by $20 billion dollars to increase real GDP.
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