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In February 2015, Wal-Mart announced that it would increase the pay rate for all its lowest paid workers. Is this wage increase a growth in fixed costs or variable costs? Would it be affected by output? If Wal-Mart's sales drop off, how might the store adjust its labor costs?
What is inflation and What are the causes of inflation? Is inflation desirable and what can be done to control inflation in a market economy?
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?
In the short run, prices may rise faster than costs. This chapter discusses why this might happen. Suppose that labor and management agree to adjust wages continuously for any changes in the price level.
On a graph with on the horizontal axis and on the vertical axis, draw a typical indifference curve (it need not be exactly to scale, but it should accurately reflect whether there is a diminishing ). Indicate on your graph whether the indifference..
An ice cream shop read in the local paper in which the elasticity of market demand for ice cream
Suppose that, in a perfectly competitive market at the profit maximizing quantity, the market price is greater than average total cost. Carefully explain what will happen to the number of firms, the market supply and the price of the good
What is the opportunity cost of mowing a lawn for Fred? What is the opportunity cost of trimming a hedge for Fred? Who has a comparative advantage in mowing lawns? How can you tell?
How should emerging market economies respond to capital outflows (if they should at all) with monetary, fiscal and exchange rate policies
Price elasticity of demand is constant if the slope of the demand curve is constant, terms of quantity changes and price changes
Bond Equivalent Yields Suppose a T-bill has 75 days to maturity and an asked discount of 4 percent. What is the bond equivalent yield?
suppose a person defects from cuba a country that generally disregards the use of markets to the united states and asks
Assume the total demand for fish and the total supply of fish per month in the Kansas City fish market are as follows:
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