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Question: In the data file USMacro_Monthly, you will find data on two aggregate price series for the United States: the Consumer Price Index (CPI) and the Personal Consumption Expenditures Deflator (PCED). These series are alternative measures of consumer prices in the United States. The CPI prices a basket of goods whose composition is updated every 5-10 years. The PCED uses chain-weighting to price a basket of goods whose composition changes from month to month. Economists have argued that the CPI will overstate inflation because it does not take into account the substitution that occurs when relative prices change. If this substitution bias is important, then average CPI inflation should be systematically higher
How does capital investment affect the marginal physical product of labor? Does more college education have the same kind of effect? Which is a better investment?
kywalker Farms supplies water to the town of Mos Eisley (they are \the water company", i.e. a monopoly supplier). Given their infrastructure of pipes, treatment centers, etc, the marginal cost of supplying one gallon of water is only $.50 (and is..
Suppose that there are two goods in the economy, and the price of each good is equal to 1. When Alice has income of $10, She consumes 1 unit of good y and 9 units of good r.
From the perspective of a Palestinian leader, which would be the most and least suitable of the listed organizations for serving as the mediator in the next round of negotiations with Israel over the issue of statehood for the Palestinians. Be su..
After her final exam this semester, Sylvia must drive from her school in Philadelphia to her home in upstate New York-What are Sylvia's expected .ne, expected wealth, and expected utility if she travels through PA?
How does a current budget deficit affect futureworkers? How could a policy by the current government to reduce thenational debt hurt these future workers?
a. Calculate the equilibrium level of income or real GDP for this economy. b. What happens to equilibrium Y if G changes to 20? What does this outcome reveal about the size of the multiplier? What does this outcome reveal about the impact of..
Suppose that the natural rate of unemployment in a particular year is 5 percent and the actual rate of unemployment is 9 percent. Use Okun's law to determine the size of the GDP gap in percentage-point terms. If the potential GDP is $500 billion i..
Using demand and supply analysis, explain the influence of the imposition of a maximum price and a minimum price on a product on price and quantity.
How does the monopolist determine price? Please Explain.
As the economy begins to recover from a recession and more people go back to work.
A new type of robot is invented, resulting in increased productivity across all industries and the U.S. Federal Reserve increases its money supply. What happens to the U.S. economy and the Canadian economy?
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