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Biggest Risk - Inflation or Unemployment
In 1980, what was the economy's biggest risk--inflation or unemployment? Do you think the Fed choose to fight inflation or unemployment in 1980?
Suppose that workers and firms could always predict next year\'s price level with perfect accuracy.
Mention and explain the two types of inflation. Which sort of inflation would most likely be associated with the negative GDP?
Proponents of trade off liberalization argue which freer trade might actually improve the quality of the environment.
Illustrate the economy's adjustment to its long run equilibrium only, as the formerly dislocated (and now retrained) labour force is finding employment in new industries.
You are planning a short-run production function for your firm, and you have collected the following data on labour usage and output: Calculate estimates of total. Average, and marginal products when the firm employs 23 workers
In the country A, all wage contracts are indexed to inflation. That is, each month wages are adjusted to reflect increases in cost of living as reflected in changes in price level. Explain answer with aggregate supply and aggregate demand curves.
Explain how the aggregate expenditure function shifts in response to the changes in each of the following variables:
Compute the point price elasticity of demand for bearing grease. Compute the optional price for bearing grease if marginal cost is $4.50 per unit.
In 1991, Brazil and Columbia united to form a coffee cartel and reduce coffee output. Suppose total costs for the cartel are: TC = 12 + 5Q + Q 2
Illustrate what is more important for them to monitor and target, inflation or interest rates.
Cartels are a form of anti-cooperative activity. Critically examine the factors that may facilitate the establishment, operation and detection of cartels.
For each of the following events, state whether the aggregate demand curve would increase, decrease, or stay the same.
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