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The Inflation Stealth Tax or Deflation tax Cut Inflation is a tax on currency. Prices in the UK have risen by 28.2 % since 2005 (measured by the consumer price index) A £ 20 note that fell down the back of a sofa 10 years ago would now be worth £ 15.60. This is equivalent to a tax of £ 4.40 imposed on the holding of currency. If prices had fallen by the same amount over that period it would be equal to a tax cut on currency holdings of 5.6%. Inflation is a stealth tax. Deflation is a stealth tax cut. Neither were it was not legislated by any parliament.
(a) Who benefits from deflation and who loses out? Analyse separately the effects on households, businesses and government.
(b) If prices fall but wages do not fall or fall by less what happens to unemployment?
Discuss the importance of a well-developed compensation plan in attracting as well as retaining good employees as well as how to keep those plans from "working too well."
Illustrate what conditions would minimize the extent of manufacturing job loss associated with this price increase.
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What is the level of price, output, and amount of profit for an unregulated monopolist? (b) Using the data in the table, what are the price, output, and profit for a regulated monopolist that sets price equal to marginal cost compared with an unregul..
Assume there are two firms in a market who each simultaneously choose a quantity.
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Find out the Nash equilibrium prices of the procedures at the hospitals. find out the profit maximizing monopoly prices of the procedure at each hospital.
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An economy has 110,000,000 people employed 8,000,000 unemployed, and 4,000,000 discourage workers. The conventional measure of the unemployment rate is what percent?
Illustrate what would happen to the profit maximizing level of output if the market price suddenly rose to $54 per case. Explain why the output level changes.
determine which of the risks involved holds the most risk to the subcontractor.
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