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What does the Taylor rule imply that policymakers should do to the fed funds rate under the following scenarios?
a. Unemployment declines due to a recovery.
b. A positive supply-side shock causes the rate of inflation to fall by 1% and output to rise by 1%.
c. The economy experiences prolonged reductions in productivity growth while actual output growth is unchanged.
d. Potential output increases while actual output remains unchanged.
e. The Fed revises its (implicit) inflation target up.
questions1 estimate the regression model e using the ols estimator and provide a summary report of the result i.e. the
Ethanol is again viewed as one part of the solution to the problem of shortages of petroleum products. Ethanol is made from a blend of gasoline and alcohol derived from corn or sugar cane. What would you expect the impact of this program to be on the..
directions be sure to make an electronic copy of your answer before submitting it to ashworth college for grading.
According to the classical economists, unemployment was a temporary deviation from equilibrium, and certain forces in the economy would return it to full employment. Such forces did not include a.price competition b. wage competition
Explain whether each of the following is an example of a macroeconomic concern or a microeconomic concern.
Assume you're in charge of the toll bridge that essentially cost free. The demand for bridge crossings Q is given by P = 60 - 2Q. Draw a demand curve for bridge crossings
Beer and pizza are compliments because they are often enjoyed together. When the price of beer rises, what happens to the supply, demand, quantity supplies, quantity demanded, and the price in the market for pizza.
Presume that the value of the potential money multiplier is equal to 8 compute the needed reserve ratio ___%. (Enter your response as a percentage rounded to one decimal place)
Catfish farming in Louisiana is a perfect competition market. Hence, customers of catfish are getting their catfish at the minimum cost per unit of manufacturing catfish, and they are very happy.
Assuming that labor is the only variable input in the short run, draw a typically shaped marginal product cuve for labor. Explain why the curve looks like this. Identify the point where the law of Diminishing returns sets in.
Figuring out the optimal premiums to charge
To complete the analysis, Chuck wants to know more about the revenue that he can generate from his farm. The price of corn depends on how much Chuck produces.
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