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# Inflation

### Explain Inflation, Stagflation, Recession, Depression and Expansion

Inflation, stagflation, recession, depression, expansion, and contraction are commonly used terms in economics and the media. What do these terms mean? In your explanation, discuss how some of these terms are related.

### Calculating and Assessing Inflation Rates

Please help me with the following problems. 1. Complete the table (see attached) by filling in the banks. 2. Which Decade has the most inflation? 3. How much did consumer prices change during the Great Depression from 1930 to 1940. 4. In 1925, the cost of a Model T Ford was \$290. What is the equivalent cost at 2008 pric

### Calculate the changes in inflation rates, unemployment rates and the RGDP growth rates

4) Go to the websites: ftp://ftp.bls.gov/pub/special.requests/cpi/cpiai.txt and ftp://ftp.bls.gov/pub/special.requests/lf/aat1.txt and http://bea.gov/national/index.htm#gdp to collect the data on annual average data on CPI index, unemployment rates and real GDP (not the GDP in current dollars) data from year 2004 through 2009 (y

### Ramifications of unemployment

Some people believe that 0% unemployment, where everyone who wants a job, has a job and 0% inflation, where prices remain the same year after year, are ideal policy targets for the U.S. economy. Would you recommend a policy target of 0% unemployment and 0% inflation? What implications would these policies have on the economy a

### Assignment on monetary policy

The Federal Open Market Committee (FOMC) of the Federal Reserve Board meets every six weeks to set monetary policy in the United States. Immediately after the meeting, the FOMC issues a â??statementâ? that consists of a few paragraphs summarizing its position. Then, three weeks later, the FOMC releases the â??minutesâ?

### Inflation and risk correlation

How can inflation and risk factor be accounted in a standard discounted cash flow analysis?

### How are unemployment and inflation related?

What is the historical relationship between unemployment and inflation? Using data for the year 2010, what are the most current figures for the unemployment rate and the inflation rate? What does this say about the economy today?

### Low inflation, expanding ecnomy, and high unemployment rates

1. How it is possible for a country to have low inflation, high unemployment rates, and an expanding economy all at the same time. What causes this to happen and as a portfolio manager, what trading strategies could you implement to protect your interest and why you would or would not expect to make a profit. Use graphs and ot

### Measures of economic activity

- Provide an explanation of GDP, unemployment, and inflation as measures of economic activity. Cite recent examples and issues in each area to support your demonstration of understanding. -Discuss the extent to which you believe these three measures are related, whether or not it is best to discuss each separately, and why yo

### 7 financial homework questions

Attached is a document with 7 finance questions. What is an opportunity cost? How is this concept used in TVM analysis, and where is it shown on a time line? Is a single number used in all situations? Explain. Explain whether the following statement is true or false: \$100 a year for 10 years is an annuity; but \$100 in Yea

### American Recovery and Reinvestment Act

A.Under the American Recovery and Reinvestment Act of 2009, the federal government is undertaking a large fiscal stimulus, about \$800 billion, or more than 5% of GDP, to be spent over the next several years. Using the AS/AD framework, explain the rationale and likely effect of this fiscal stimulus program. How large an effe

### Propose a strategy to bring the economy out of recession

Suppose that you are the chief economic advisor to the president of the U.S. You are asked to propose a strategy to bring the economy out of recession. Your goal is to avoid inflation and yet bring the economy to full employment as rapidly as possible. What will be your main strategy? Why? Use examples and give reasons to suppor

### Inflation, currency appreciation/depreciation and trading partners.

Explain whether you agree or disagree with each of the following statements. a) A nation's currency will depreciate if its inflation rate is less than that of its trading partners. b) A nation whose interest rate falls more rapidly than that of other nations can expect the exchange value of its currency to depreciate. c

### Definition of six indicators for Starbucks service store

I need around 1000 word. Define each of the six indicator for starbucks (interest rate, housing starts, auto sales, foreign exchange rate, producer price index, and oil and fuel prices). and describe its current status, also present a separate graph for each indicator, illustrating each historic trend. Analyze the relationshi

### Inflation and Aggregate Demand and Supply

Having problems with the three questions below. 1. Consider the following price information: Year 1 Year 2 Cup of coffee \$.50 \$1.00 Glass of milk \$1.00 \$2.00 (a) Based on the information given, what was the inflation rate between year 1 and year 2? (b) What happened to the price of coffee relative t

### Labor Force, Inflation Rate

The size of the labor force in a community is 500, and 400 of these folks are gainfully employed. In this community, 100 people over the age of 16 do not have a job, and are not looking for work. In addition, 200 people in the community are under the age of 16. The unemployment rate is...? Suppose nominal GDP in 2000 was \$8 t

### Overvalued

Based on the analysis you did on CPI's valuation and in the context of the valuation of the major consumer products companies (look at the price-to-earnings ratio of CPI versus the competitors), do you believe analysts think your firm is undervalued? Could that perception change if the economic climate changes? Do you believe CP

### Relating an Article to Economic Theory: Example Problem

I have an article and I have summarized the facts. Please help me to relate these facts to economic concepts. I need to understand which economic ideas are relevant to the article and how, and I need to be able to understand them enough so that I can build on them for the rest of the project. I also need the necessary graphs

### Help With Monetary Policy

1) By law the Federal Reserve is required to pay attention to both unemployment and inflation. How does the Federal Reserve accomplish these goals? 2) What are the pros and cons of using contractionary and expansionary monetary policy tools under the following scenarios: depression, recession, and robust economic growth? 3

### Estimating NPV

Assume that a less developed country called LDC encourages direct foreign investment (DFI) in order to reduce its unemployment rate, currently at 15 percent. Also assume that several MNCs are likely to consider DFI in this country. The inflation rate in recent years has averaged 4 percent. The hourly wage in LDC for manufactu

### Trying to understand Microeconomics

a. What is the relationship between inflation and unemployment (in numerical, percentage value, the natural rate of unemployment) and the danger we face if the unemployment rate drops below that natural rate. What percentage is the Natural Rate of Unemployment? b. What is the definition of Gross Domestic Product (GDP) and i

### Three functions of money

What are the three basic functions of money? Describe how rapid inflation can undermine money's ability to perform each of the three functions.

### Average Annual Inflation Rate with Actual Prices Adjusted

Thirty years ago, the price of a new Volkswagen was \$5,000. (Actual price adjusted to simplify the calculation). The price of a new Volkswagen is \$20,000 today. Basing your answer solely on the aforementioned prices, by what percent have prices increased over the past thirty years? What average annual inflation rate would have

### Replacement cost decisions

Cotner Clothes Inc. is considering the replacement of it old, fully depreciated knitting machine. Two new models are available: Machine 190-3 which has a cost of \$190,000, a 3 year expected life, and after tax cash flows (labor savings and depreciation) of \$87,000; and Machine 360-6 which has a cost of \$360,000, a 6 year life, a

### Measures and Indicators: GDP, national income, unemployment, inflation

My reference organization is Walmart Referring to indicators of performance, particularly indicators of improving or decreasing levels of performance used by Walmart. Please address the following questions: 1. What are the three best macro-economic indicators that you could use to assess conditions that apply to Wa

### Inflation and Interest rates

Explain as carefully as you can why borrowers would be willing to pay a higher interest rate if they expected the inflation rate to increase in the future.

### Government Budget, Labor demand, Equilibirum

What are government's fiscal policy options for ending severe demand-pull inflation? Use the aggregate demand-aggregate supply model to show the impact of these policies on the price level. Which of these fiscal policy options do you think might be favored by a person who wants to preserve the size of government? A person who

### CPI + S/D diagram

A) Suppose that several months of data showed the CPI increasing at a 1% annualized rate down from previous 4% rate and this caused expectations of annual inflation to also decrease from 4% to 1%. Assume, at the same time that fears of recession and default on corporate and asset backed bonds reduced the expected real rate of r

### Using the Fisher Effect

Examine the exchange rate of the U.S. dollar to the Japanese yen in January 2005 versus January 2006. 2. Compute the appreciation or depreciation of the U.S. dollar relative to the Japanese yen. 3. Check the U.S. inflation rate for 2005 and apply the Fisher effect formula. (Please explain the formula and how you got