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Suppose the target rate of inflation is 2.5%, the current rate of inflation is 2%, and the output gap is 3.5%. What is the interest rate if the Taylor rule is: r = 5.5 +1,75Y~ + 1.25(pi - pi r)? Using the equation in part (a), describe the meaning of the number 1.75. Using the equation in part (a), describe the meaning of the number 1.25. what is the interest rate if the Taylor rule is: r = 5.5 +1.75 Y~+ 1.75(pi - pi r)? Comment on these two Taylor rules. Which leads to higher interest rates, which leads to higher output? Which leads to higher inflation? Which represents a more hawkish Fed? Which represents a more dovish Fed?
calculate the breakeven cost of the above air-conditioner with condenser using evaporative cooling if the MARR is 8% p.a.
Explain how global stratification impact local culture and expalin what are the positive does and the negative effects.
If the average employee compensation grew at the rate of 3.5% per year, explain how many years would it take for it to double.
Show the effect of an increase in the price that the government charges for electricity.
elucidate only the effect of recession on the country. Due to floods a country suffered from recession but gradual triggered growth in the manufacturing sector in the following years.
Assuming that this is rational behaviour by profit-maximizing "firms" elucidate what economic factors may influence such behaviour.
Open a pizza restaurant and is considering either selling the bonds and using the 100,000 to start his restaurant or borrowing the 100,000 from a bank which would charge him an annual interest rate of 7 percent.
Elucidate how an economist could use the slope of the yield curve to analyze the probability that a recession will occur and why the spread may matter.
Monopoly is often heralded as the ultimate goal of a firm, to be the only seller in a market. however the picture might not be as rosy as it appears if you actually reach monoply status. Why is that. How monopolies in real world earn huge rates of..
Price ceiling is the law that sets a maximum price below the equilibrium market price, but a price floor is the law that sets a maximum price above the market equilibrium price.
It has been estimated that the price elasticity for cigarettes is 0.164. Assuming there are currently no taxes on cigarettes, to reduce cigarette purchases 5%, government would need to tax cigarettes enough t.:
Describe an industry that would meet conditions of a perfectly competitive industry and how individual firms would respond to an increasing market demand for product.
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