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Suppose that inflation is 2 percent, the federal funds rate is 4 percent, and real GDP is 2 percent above potential GDP. According to the Taylor rule, in what direction and by how much should the Fed change the real federal funds rate?
Instructions: Round your answer to 2 decimal places.
The federal funds rate by percent.
Illustrate what is the effect on the supply and demand of skateboards. Every events described below will have some impact on the demand for skateboards.
What are the equilibrium quantity and price? How much consumer surplus exists in this market? If a $2 excise tax is levied on this good, what will happen to the equiilibruim price and quantity? What will the consumer surplus be after the tax?
What is the difference between supply-side and demand-side economics? How do the above concepts fit into these definitions? Which do you agree with most as a solution to stimulating growth, and why?
The inverse market demand curve is P=140-Q, and inverse supply curve is P=20+Q. Now Assume a commodity subsidy of $20 is given for each unit of production.
Find the profit-maximizing price and output of the new monopoly.
Compare and contrast the behaviour of the indicators for the United States with those for the Australian economy and which industry experienced the highest rate of growth in the twelve months March quarter 2013 - March quarter 2014?
What will be the hours of work in the hospital and in the clinic to maximize income? What will be the income earned by the physician per day? Show your work.
Identify and discuse the IS-LM framework(determination of income and interest rate) and the wquivalentAD-AS framework (determination of price level andincome) and how changes in equilibrium occur as a result of changes in fiscal and money policy..
Identify a product that you regularly consume, such as soft drinks or a particular snack food. Describe how your demand (consumption) will be impacted by a 25% price increase.
Is government intervention needed for our economy to run well? Why or why not? Please write a 2 page double spaced paper using APA formatting.
At what price will she buy four visits? Eight visits? What is the elasticity of between a price of $5 and $6 per visit? Between a price of $29 and $31?
what is the meaning of the credit multiplier in the monetary sector
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