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a) Should the Federal Reserve Board focus exclusively on the problem of inflation?b) What other goals are appropriate for Federal Reserve policy?c) What is the appropriate goal for the inflation rate?d) How effective is Federal Reserve monetary policy in achieving its goals?
Illustrate what is nominal GDP. Illustrate what is real GDP included in each.
Why does the assumption of independence of risks matter in insurance What would happen to premiums if the probabilities of houses burning were positively correlated Can you think of a situation where they might be negatively correlated
Some fields have large enough quantities of both oil and natural gas that coordination must be achieved for the production of both, rather than oil a in our examples. Will fields with both oil and gas have greater difficulties in unitization than ..
If you were an economist for Mattel, manufacturer of the doll Barbie, determine which was making an unsolicited bid to take over Hasbro, manufacturer of G.I. Joe,
The demand function for VCRs has been estimated to be Qv = 123 - 1.7Pt + 46 Pm - 2.1Pv -5M, where Qv is the quantity of VCRs,Pt is the price of a videocassette, pmis the price of a movie, Pv is the price of a VCR, and M is income.
Studies indicate that the price elasticity of demand for cigarettes is about .4. If a pack of cigarettes currently costs $2, and the government wants to reduce smoking by 20 percent, by how much should it increase its price?
Illustrate what would happen to the dollar-yen spot exchange rate and the current account deficit if there were a decrease in Japanese investment in the United States.
Data Collected in the imaginary econmomy of Chipolaysia reveals that when the price of dorf decreased by 25%, the quantity of dorf sold increased by 10%.
P stands for price Pr stands for price of related good also N stands for per capita disposable income.
Assume there are two types of investments, business investments. There is a permanent increase in the nominal supply of money.
Compute the path of the economy, that is , calculate real GDP, the price level, the inflation rate and real money stock for each year until GDP I swithin 1% of the potential. (limit calculated values to 10 decimals points)
For each restaurant, write profit as a function of Px and Py and find the best response functions of the two restaurants.
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