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Check the Federal Reserve Board's semiannual monetary policy reports to the Congress (www.federalreserve.gov/boarddocs/hh). In these reports, which are published every year in February and July, the Federal Reserve Board members provide economic performance forecasts. Using this information, answer the following questions:
a. How well did the Fed anticipate the economic performance of 2010?
b. Explain why economic forecasts are not totally accurate.
A delivery company is considering adding another vehicle to its delivery fleet, all the vehicles of which are rented for $100 per day. Assume that the additional vehicle would be capable of delivering 1500 packages per day.
Which of the four properties outlines in Section 6.3 would such indifference curves violate?
When the price of a deluxe car wash rises from $10.00 to $11.00, the number of daily customers falls from 60 to 48
Suppose a country's GDP equals $500 billion for a particular year. Economists in the country estimate that household production equals 40% of GDP. What is the value of the country's household production for that year. Counting both GDP and househo..
What macroeconomic variables do you think they should look at when conducting monetary policy?
he company is proposing to build a $10-million power plant to burn its waste as fuel, thereby saving $2.8 million a year in coal purchases. Company engineers have determined that the waste-burning plant will be environmentally sound.
Assume an economy with steady-state unemployment. The separationrate is 2.5% per month and the finding rate is 47.5% per month. Theadult population is 120 million workers and the labor-forceparticipation is 2/3. How many workers lose their jobs ea..
What are the major sources of government revenues? How does the composition of the Federal government's outlays and revenues differ from that of state and local governments?
Describe how the evidence will be examined (a) by whom and (b) using what type of evidence gathering technique (inquiry, inspection, confirmation, etc.);
Suppose that the Fed's inflation target is 2%, potential output growth is 3.5%, and velocity is a function of how much the interest rate differs from 5%: %^V= 0.5 X (i-5). Suppose that a model of the economy suggests that the real interest rate is..
Suppose the equation for th LM curve is Y=13500+100r. Use this equation to explain the level of income at which there is a zero lower bound on the federal funds rate, the interest rate that the Fed controls.
due to a recession that lowered incomes the 2008 market prices for last-minure rentals of u.s. beach -front properties
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