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Two similar surgeries, breast reconstruction and breast augmentation, have different prices. Breast augmentation is cosmetic surgery not covered by health insurance. Patients who want the surgery must pay for it themselves. Breast reconstruction following breast removal due to cancer is covered by insurance. The price for one of the surgeries has increased by about 10% each year since 1995, whereas the other has increased by only 2%per year. Which of the surgeries has the lower inflation rate? Why?
Consider the AS/AD model. Analyze the effect on the economy in the short run and in the long run after the following events: a). the Congress increases investment tax credits b). the congress decreases import tariffs. Determine in details how can mon..
Which of the following statements are true? To curb inflation and reduce the money supply the Federal Reserve can: I. Increase the discount rate II. Increase the required reserve ratio III. Decrease the discount rate IV. buy securities in the open ma..
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?
If a high per-bag fee were charged for garbage collection, how would consumers respond? What can cities do to reduce the amount of garbage that goes into landfills?
Under the pressure from the Congress, the U.S. Federal government has been working hard to reduce, or at least not to expand, the budget deficits and national debts. Meanwhile, the Fed keeps pumping money into the economy since the financial crisis t..
In September 2012, the New York City Board of Health approved Mayor Michael Bloomberg's proposal to ban the sale of large sugary drinks in restaurants and other venues in an attempt to reduce obesity and promote more healthful living. How do you thin..
El Paso Water Utilities (EPWU) purchases surface water for treatment and distribution to EPWU customers from El Paso County Water Improvement District during the irrigation season. A new contract between the two entities resulted in a reduction in fu..
Crossroads Sign Case Assume you are the plant manager for Crossroads Sign Company, which produces road signs in a market that approximates perfect competition.
The banking system currently has $100 billion of new reserves, none of which are excess. People hold only deposits and no currency and the reserve requirement is 10%. If the Fed lowers the reserve requirement to 8% and at the same time buys $10 billi..
Write an essay about 300-400 words about Gross Domestic Product: analysis of Viet Nam economy's GDP composition and growth over time, as well as an investigation of the country's basis for income generation and any and all constraints to growth
Bill gets utility from consuming food (F) and clothing (C) represented by the following utility function: U(F,C) = FC + F. The price of food is $1 per unit and the price of clothing is $2 per unit. Bill’s income is $22. Find the utility maximizing ch..
which limits amount of goods they can purchase. Preference Consumers always choose goods which give most pleasure. So how do we measure about pleasure.
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