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From The Wall Street Journal, Thursday, December 2, 2004:
"Janet Yellen, president of the Federal Reserve Bank of San Francisco, said in a speech yesterday at Arizona State University that sustained high oil prices, business caution, the growing trade deficit, consumers' need to rebuild savings and the waning boost from tax cuts could all weigh on the expansion and create 'more opportunities for the Fed to pause.' But if those drags lift, the Fed could raise rates more rapidly."With the help of one or more AD-AS diagrams, explain how each of the factors mentioned by Yellen works to create a drag on the economy. Your answer should include a verbal explanation and graphical depiction for each factor. Be clear about the market linkage
Illustrate what will happen to the equilibrium level of income if investors become optimistic about the country's future and raise their investment.
A perfectly competitive firm should hire an additional worker only if the employee 's marginal revenue product is less than the wage rate.
Discuss the evolution and responsibilities of the Federal Reserve System. What circumstances promulgated both the development and composition of the system.
As all points on a contract curve are efficient, they are all equally desirable from a social point of view.
Trade off liberalization conflict with morally-conscious environmental policies. While it is true that economic growth is necessary for general welfare
Elucidate who decides whether these particular products should continue to be produced and offered for sale. How do these decisions differ between capitalist and socialist systems.
Use our discussion of price discrimination to justify this argument. What problems do you envisage in implementing the policy?
Examine present global economic and political policies and their impact on business decisions.
Explain the cultural, political, and economic reasons behind these policies also explain the methods governments use to promote and restrict international trade
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Pawel spends half of the year working in Britain where he consumes British food q and half of the year in Poland where he consumes Polish food Q.
Compute real GDP for 2004 and 2005 using 2004 prices. By what percent did real GDP grow? Compute the value of the price index for GDP for 2005 by using 2004 as the base year. By what percent did prices increase?
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