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1. The most recent annual inflation rate.
2. Within the consumer price index data are the recent inflation rates for various types of purchases (ex: food, fuel, housing, etc.). Pick 3 separate types of purchases and record the unadjusted one year rate for each of them. (NOTE: "rate" refers to the percentage change over the past 12 months)
3. Which single type of product has the greatest impact on you personally and how does that product's inflation rate compare to the overall average?
4. Which single type of product has the greatest impact on your employer and how does that product's inflation rate compare to the overall average?
Discuss the reason why governments might want to intervene and how they might do- with respect to the following "problem" in the functioning of an otherwise perfectly-competitive ("pareto-efficient") economy:
What is the value of the money multiplier? What is the value of the nomial money supply? What are the nominal values of deposits, currency and reserves?
Explain why dose not raise in aggreate demand translate into an increase in real GDP.
The following information describes a hypothetical economy (assume all numbers are in billion if necessary) Determine the value of the MPC of this economy?
If velocity is unchanged and the money supply grows by 13% and the real GDP grows by 4%, what is the rate of inflation?
What will be the effect of this change in policy on both the real and the nominal interest rate in the long - run?
When McDonalds Corp reduced its price of the big mac by 75 percent-Using your knowledge of game theory, what do you think disrupted McDonald's plan?
Suppose planned investment falls by 100. Graphically illustrate using the AE-Y graph the effects of this reduction in planned investment on the economy. Also calculate the new equilibrium level of income.
Evaluate: "The fact that some airplanes collide is evidence there is 'too little air traffic control'." (Be sure to explain what too little might mean.)
What could a president or other government policymaker do to raise a contry's standard of living.
Illustrate the difference among the law of diminishing marginal returns and the law of diminishing marginal rate of technical substitution.
Let's say there's a world-wide influenza pandemic. Assume that the marginal cost (supply) of influenza vaccinations is constant at $40. Assume that everyone in society has health insurance that pays 80% of all medical services
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