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1. Explain why a stable 5% inflation rate can be preferable to one that averages 4% but varies between 1–7% regularly.
2. Explain the difference between active and passive monetary policy.
3. Suppose the economy is in long-run equilibrium, with real GDP at $16 trillion and the unemployment rate at 5%. Now assume that the central bank unexpectedly decreases the money supply by 6%. a. Illustrate the short run effects on the macro-economy by using the aggregate supply-aggregate demand model. Be sure to indicate the direction of change in Real GDP, the Price Level and the Unemployment Rate. Label all curves and axis for full credit.
4. Suppose the economy is in long-run equilibrium, with real GDP at $16 trillion and the unemployment rate at 5%. Now assume that the central bank increases the money supply by 6%. a. Illustrate the short-run effects on the macro-economy by using the aggregate supply-aggregate demand model. Be sure to indicate the direction of change in Real GDP, the Price Level, and the Unemployment Rate. Label all curves and axis for full credit.
Six Sigma is deployed using the Define-Measure-Analyze-Improve-Control (DMAIC) project management framework. Identify an actual Six Sigma project and write one paragraph covering each of the DMAIC phases.
What is the short term economic benefits and costs associated with the current high federal government budget deficits?
A popular restaurant charges lower prices for alcoholic drinks in the late afternoon (4-6pm), but offers no such discounts at lunchtime or on weekends. What is different about demand characteristics for the same product at the same location but at di..
Why are standards important for competition in the European market? Discuss examples (like telecommunication)! New members want to join the EU: Please name economic arguments to discuss if a further enlargement makes sense.
Delta and Southwest Airlines announced a new round of fare discounts. In response Sangita Woerner, Vice President of Marketing at Alaska Airlines, said, “It’s unlikely that we will match these fare reductions because we do not anticipate any negative..
An economy is initially at the natural level of output. There is an increase in government spending. Use the ISLM model to illustrate both the short-run and long-run impact of this policy change. Be sure to label: i. the axes; ii. the curves; iii. th..
A book printing company operates under zero-profit condition in a competitive market. Suppose this company invents a new production technology which reduce its average total costs in the process of printing. If the new production technology is protec..
Identify the following interest rate statements as either nominal or effective: (a) 1% per month compounded weekly; (b) 0.5% per week compounded weekly; (c) effective 15% per year com- pounded monthly;
Richard Pawlus was an owner of Dutch City Wood Products, Inc., which did business as “Dutch City Marketing”. Pawlus purchased merchandise from Rothschild Sun systems from April 24 to June 24 using the designation “Richard Pawlus Dutch City Marketing”..
Identify and explain at least three aspects of wu wei (non-doing) that would be practical in the busy lives of city dwellers, especially those living in the West. Provide a rationale for your response.
Explain how could ABC use interest rate swaps to reduce the exposure of its cost of debt to interest rate movements.
Illustrate what might account for these trends. Compute currency in circulation as a percentage of M2.
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