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1. What is a naive forecast of inflation?
2. How do we know that the Phillips curve does not help in forecasting inflation?
What happens to the price and the quantity bought and sold in the cocoa market if countries producing cocoa experience a drought and a new study is released demonstrating the health benefits of cocoa? Illustrate your answer with a demand and suppl..
P = 800 - 0.16 If the goal of the transit authority was to maximize total revenues, what is the new price it should set Also, what would the total revenue raised in this new price scheme
Why are industries like computers not good candidates for infant industry protection?
Suppose that the Ofce can hire skilled labor h that can ll the forms without using computers. The output of the Ofce that hires h skilled labor, l unskilled labor and k computers is equal to y = l + 10 min (h; k) Solve the long-run cost minimizat..
consider 2 countries avataria and twilightia which can be described by the solow model. avataria has a capital-labor
Jane starts working on her 25th birthday with an annual saary of $55,000. She sets aside 5% of her salary at the end of each year for her pension plan, whch is matched by her employer.
Suppose that each firm that tries to produce autos must go through the shakedown period of high costs on its own. Under what circumstances would the existence of the initial high costs justify infant industry protection?
What would happen to revenues if a competitive firm raised price?
For savers, how will the income effect of a higher interest rate affect current saving? How will the substitution effect of a higher interest rate affect current savings?
Amy has $12 a week to go spend on coffee and pop. The Price of coffee is $2 a cup, and pop is $1 a can. Draw a graph of Amy's budget line. Can Amy buy 7 cans of pop and 2 cups of coffee a week? Can she buy 7 cups of coffee and 2 cans of pop a week..
Howard Bowen is a large-scale cotton farmer. The land and machinery he owns has a current market value of $4M. Bowen owes his local bank $3M. Last year Bowen sold $5M worth of cotton. His variable operating costs were $4.5M; accounting depreciatio..
Now suppose one big firm comes and buys out all of the firms in the cartel. This monopoly somehow miraculously is able to perfectly price discriminate. How much will this firm produce What will be the deadweight loss created by this monopoly
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