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(a) Define the inflation rate. (b) Explain how the CPI differs from the PPI, as a measure of the U.S. inflation rate. (c) Why is inflation risk a business management risk? (d) Which would be better, for the U.S. economy, a low stable inflation rate or deflation? Explain. (e) What U.S. government organization is primarily responsible for controlling the U.S. inflation rate, while helping to reduce cyclical unemployment and increase the U.S. economic growth rate?
Decreasing returns to scale imply that. When average cost is falling, marginal cost is ____________ and when average cost is rising, marginal cost is _________________. If the price of an input changes, there will be a new expansion path. As long a..
q.assume an industry is composed of the following eight firms.company market sharefirm a 30 percent firm b 25 percent
Explain the relationship between one's beliefs about whether the minimum jobs program presented in the chapter actually solves the unemployment problem and one's normative view of responsibility for unemployment.
q. brit oxygen whose global sales are generally dollar denominated needs to borrow 50000000 for working capital also
Economists assume that consumers attempt to maximize their utility based upon their preferences, income and price of commodities. Do you see any weakness of the above are you aware of any example of irrational behavior by consumers (or yourself)?
Explain how the following events will affect the demand for money according to the portfolio theories of money? demand: The economy experiences a business cycle contraction. Brokerage fees rise?, making bond transactions more expensive. The stock mar..
In the land of Chin there are two distinct and equally numerous peoples: Yins and Yans. The Yang have historically been stronger and more aggressive that the Yins. What is the most likely source of the wage differential between the Yin and Yan paddle..
If a machine cost $50,000 initially and is expected to last for 20 years but is worth $60,000 after one year because it is in short supply, an accountant most likely would say that:
The country of Alcazar has been growing at an impressive pace for the last five years. With improvements in technology, many industries have recorded remarkable growth in productivity
Suppose that your firm is the only producer of a high-tech sports utility vehicle for North American markets. Assume a constant marginal cost of $25,000 to produce each vehicle and no fixed costs of production.
Suppose two countries, A and B, with the same production function Y = K? L 1?? . The value of ? is 0.30, the growth rate of population is 2% and the depreciation rate is 5%. Compare both economies to the Golden Rule.
Suppose that your opponent is not playing her Nash equilibrium strategy. Should you play your Nash equilibrium strategy? why or Why not?
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