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The Economics in Practice describes the increase in food prices around the world in 2008. Since food, in large measure, affects the real income of households, increasing prices will eventually push up wages and have an impact on the aggregate supply curve. Central banks were very worried about the prospects for inflation becoming generalized. To stop inflation, what would the Fed be likely to do? What are the consequences for the economy?
Specifically, what would be the effects on employment and unemployment given the actions taken by the Fed? Respond to at least two of your classmates’ postings.
Suppose you are a manager of a monopolistically competitive company, and your demand and cost functions are given by Q=20-2P and C(Q) = 104 - 14Q + Q^2
Major multinational company such as Acme (some of which are listed below) attempt to track the relative movements and magnitudes of global capital investment.
the government needs to reduce smoking by 20%, by how much should it increase the price.
Assume that you test the Linder hypothesis by comparing Germany's absolute difference in per capita income from each of its trading.
Suppose, during the last year, in a closed economy (net exports=0), consumption expenditures were $20 billion, investment was $12 billion, government purchases were $20 billion, and the underground economy produced $10 billion worth of goods and serv..
Using the marginal productivity theory of labor demand to forecast the impact on the company's employment level of following events. Describe why the change in employment occurs and show it in a graph.
Elucidate and discuss if and how this has changed over the past 5 years. Write a brief description of the fiscal policy of the United States.
In a multibank system, an individual bank makes loans only up to the level of its excess reserves, while the whole commercial banking system can lend out money that is a multiple of the original bank's excess reserves. Why is there this difference..
A machine cost $4,000. It lasts two years and has no salvage value [that is, it has no value at the end of those two years of use]. In every year, it produces $ 2400 in income. Should the company invest in machine if the interest rate is 10 percent?
Illustratr what is there is an increase in the supply of money.
If a corporate bond paid 9% interest, and you are in the 28% income tax bracket, what rate would you have to earn on a general obligation municipal bond of equivalent risk and maturity in order to be equally well off. Given that municipal bonds ar..
What is gross about gross domestic product? Could an economy enjoy a constant or growing GDP while not replacing wornout capital?
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