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Inflation is forecasted to remain consistent with its target over the next 1-2 years. Inflation arises when:
A. The expenditure plans of agents exceed the supply of output by firms
B. The earning plans of agents fall short of what they earn in the economy
C. The currency appreciates in the foreign exchange market
D. A and B
A brief explanation is preferred.
Suppose that since some base year, the the price index (or GDP deflator) has increased from 100 to 125. During the same time period, NOMINAL GDP has increased from $500 billion to $600 billion. What is the value of REAL GDP at the end of this period ..
In a particular competitive market, the sellers have private marginal cost (PMC) equal to 2.5 at every output level. The demand curve has the equation P = 52.5 − (5Q/2), where Q ≤ 21 is the quantity bought at price P ≤ 52.5. Find the competitive equi..
According to the rule for optimal input usage, a firm should hire a person as long as her marginal revenue product is greater than her marginal cost to the company. In offering such training programs, is a company violating the optimality rule?
The narrator is consumed by the idea that human begings do not actually have free will. How is his free curtailed on the nadir, and how does he fight back.
Explain why each of following is or is not a valid probability distribution for a discrete random variable x: See p.183-84. 4.16 Toss three faircoins and let x equal number of heads observed.
Have a lower value of a flight than business travellers. What pricing strategy options are available to the airline? In addition, what relationship between the two markets limits the airlines ability to raise price.
q1. why does the assumption of independence of risks matter in the examples of insurance? what would happen to premiums
Decide to conduct a SWOT analysis to evaluate the value and risks. Provide a SWOT analysis and briefly discuss each factor.
Assume that you agree with a venture capitalist that you will pay her $1.557 million 3.5 years from now for her investment in your invention. She requires you to set aside an amount of money semi-annually, starting now, to ensure for the $1.557 milli..
There was some dramatic change in the market structure that the one firm merges all the firms in the aforementioned industry. That means now the industry has a monopolist. Find the price, quantity, and the level of profit that a monopolist will face...
Illustrate what is the four industry concentration ratio of the hamburger organization in this town.
Output per worker yt = 4kt 1/3, the saving rate is 30 percent, and the depreciation rate is 13.3 percent. Calculate the steady-state values of capital per worker and consumption per worker.
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