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An economist has predicted that for the next 5 years, the U. S. will have an 8% annual inflation rate, followed by 5 years at a 6% inflation rate. This is equivalent to what average price change per year for the entire 10-year period?
Elucidate how events such as the World Trade Center and Pentagon attacks described in the case study affect the aggregate demand curve.
Should the government limit the amounts that juries are allowed to award victims of medical malpractice, so as to reduce malpractice insurance premiums and thereby lower health care costs.
Assuming oranges operate in a perfectly competitive market, use a well-labeled demand and supply model to explain how market equilibrium price of oranges is determined.
Was Balagny Clothing Company better off keeping its operations within the US? Why more manufacturing companies are beginning to relocate to the US after enjoying the benefits of outsourcing to low labor cost countries? What are the determinants of pr..
Suppose you have $120 to spend on food and clothing. The price of food is $4 and the price of clothing is $8. a, Graph your budget constraint; calculate the slope of it. b, Briefly explain why your optimal choice is the point at which your budget con..
There has been an increasing trend towards outsourcing manufacturing from the US. In the tennis shoe manufacturing industry, some companies such as New Balance still manufacture some portion of their products in the US despite the opportunity of chea..
Suppose you want to estimate the following labor supply equation: You gather data on US workers aged 22 to 55 from the Current Population Survey. You define the Average Hourly Wage as self-reported total annual labor income divided by self-reported t..
Assume that apples are an inferior good. Draw a perfectly competitive market for apples and a firm selling apples in the long run equilibrium where price is $10 and the firm’s equilibrium quantity is 50. EXPLAIN what happens in the short-run if coust..
A nation's capital goods wear out over time, so a portion of its capital goods become unusable every year. Last year, its residents decided to produce no capital goods. Will the nation's economic growth rate for the current year be negative, zero, or..
Suppose there are 3 risk-neutral bidders that are interested in purchasing a Pablo Picasso painting at an auction. The bidders have valuations for the painting of $8 million, $10 million, and $15 million. The bidders do not know each other's valuatio..
Define Monetary Policy. Describe the impact that Monetary Policy has on our economy. Name the three major tools of Monetary Policy and describe how each one would be used to lower the money supply.
When students graduate from college, they leave the classroom and begin looking for a job. For each of the labor market statistics, determine if the unemployment rate and the employment population ratio increases/decreases/does not change. Suppose t..
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