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Suppose that the Fed's inflation target is 2%, potential output growth is 3.5%, and velocity is a function of how much the interest rate differs from 5%:
%?V=0.5X(i-5)
Suppose that a model of the economy suggests that the real interest rate is determined by the equation
r= 8.5-%?Y
Where Y is the level of output, so %?Y is the growth rate of output. Suppose that people expect the Fed to hit its inflation target
Please answer the following - (under each-A, B, C, D) A. Calculate the optimal money growth rate needed for the Fed to hit its inflation target in the long run. B. In the short run if the output growth is just 2% for two years and the equation determining the real interest rate changes to: r=4.5-%?Y, what money growth rate should the Fed aim for to hit its inflation target in that period? C. If the Fed instead maintained the money growth rate from part a, what is likely to happen to inflation? D. Which policy do you think is better in the short run? Which is better in the long run?
To what extent can Rolls-Royce's strategic approach can be best categorized as "Deliberate" or as "Emergent"? Explain your answer and explain Porter's five forces framework and suggest to what extent it has helped Rolls-Royce to better analyze its ..
Fill in the column of marginal products. What pattern do you see. How might you explain it. Compare the column for average total cost and the column for marginal cost. Explain the relationship.
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The demand schedule for new hires with le bac and the supply schedule for similarly credentialed new job seekers are given in the accompanying table. Elucidate the currency used in France-is the same as the yearly wage.
How will this affect the firm’s profit maximizing use of coal and output? d) What is the advantage and the disadvantage of placing a tax on the burning of coal to reduce global warming?
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Explain why sharp decline in oil prices might not necessarily have positive or negative impact.
Barb also Jim run a business which sets up also tests computers. Assume which Barb also Jim can switch between settings up also testing computers at a constant rate
Suppose that clean srings water c ompany has a monopoly on bottled water sales in california. suppose that the price of tap water increases. which is the change in the profit maximisation price and level of output for CSWC. explains in words and..
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