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Suppose worker productivity increased at the rate of 1.9% per year. If the labor force grew by 1.5% per year, what rate of increase in RGDP would be sustainable without increasing inflation pressures?


Suppose that initially actual and natural real GDP both equal 11,000 and that the rate of inflation is 3.5 percent. Natural real GDP grows by 3 percent per year over the next five years. Actual real GDP decreases by 2 percent in the first year, but then grows by 4 percent in the second year, 5.5 percent in the third year, 4.2 pe


Help in answering these questions. Answers should be 250-300 words each. 1 Inflation is the general increase in prices with some prices rising faster than average and even some prices falling. Inflation attracts a great deal of attention among policy makers and some of the remedies for it can have serious consequences in pr

Analyzing CPI data

Compute the inflation rate for each year 1989-2006 and determine which were years of inflation. In which years did deflation occur? In which years did disinflation occur? Was there hyperinflation in any year? Year CPI 1988 118.3 1989 124 1990 130.7 1991 136.2 1992 140.3 1993 1

Philips curve

Due to historical differences, countries often differ in how quickly a change in actual inflation is incorporated into a change in expected inflation. In a country such as Japan that has had very little inflation in recent memory, it will take longer for a change in the actual inflation rate to be reflected in a corresponding ch

Inflation, deflation, and unemployment; market vs. command economies

1. What is the formal definition of economics? Economics is the study of how human beings coordinate their wants and desires, given the decision-making mechanisms, social customs, and political realities of the society. One of the key words in the definition of the term "economics" is coordination. 2. What is a consideration

AS/AD diagram for Inflation

Draw an AS/AD diagram illustrating your answer to the statement below. That is, draw an AS/AD diagram which shows what happens if strong growth in AD has pushed actual RGDP to a level above potential (full employment) RGDP. Be sure to label all lines and axes in your diagram clearly. If the Inflation rate were to accelerate

Current Status of Real GDP, Unemployment Rate, & Inflation Rate

1. Define & describe the current status of Real GDP, unemployment rate, inflation rate as measured by CPI, auto sales, Producer Price Index (PPI), and Oil & Fuel Prices. Make a graph for each illustrating the historic trend. ( I would say go back 5 or 10 years..whatever you think). For instance, Real GDP means blah, blah, b

Macroeconomics: GDP, Unemployment, Inflation, and Circular Flow

Prepare a 700 word paper in which you define the following terms: a. Gross Domestic Product (GDP) b. Real GDP c. Unemployment rate d. Inflation rate e. Interest rate In your paper, explain how the circular flow diagram illustrates the interaction of households, government, and business. Also,

Consumer Price Index calculation

Make a chart that lists three strengths and three weaknesses of the Consumer Price Index calculation. Post a response that answers the following questions once your chart is complete: o What are the characteristics of the items listed as strengths? o What are the characteristics of the items listed as weaknesses? o If t

Economic for Business

I need help with a 1500 word paper on the following, using information from previous assignments which are provided below, however the information needs to be elaborated on further, this is my portion of the assignment. (I am willing to pay up 20 credits if this can be completed in 1 day) with no plagiarism and references. WK 1

Productivity, Inflation

I need help understanding the concepts of full employment, inflationary gaps, and recessionary gaps and current level of unemployment in terms of current and potential GDP. If a change in productivity occurs, what are the changes to equilibrium output, prices, and the unemployment level. Assume that right now, the conse

Deficits and Surpluses Healthcare

ARBITRARINESS OF DEFINING DEFICITS AND SURPLUSES Whether or not you have a deficit or surplus depends on what you count as a revenue and what you count as an expenditure. These decisions can make an enormous difference in whether you have a surplus or deficit. For example, consider the problem of a firm with annual revenues of

Information on Inflation in general.

Http:// 1. The most recent annual inflation rate. 2. Within the consumer price index data are the recent inflation rates for various types of purchases (ex: food, fuel, housing, etc.). Pick 3 separate types of purchases and record the unadjusted one year rate for each of them. (NOTE

Unemployment, inflation, budget deficit

Four questions: There is one on unemployment, a couple on inflation and then one on budget deficit. If you could just walk me through step by step and break it down it would be GREAT! Thanks! 4. In Northlandia, there are no labor contracts; that is, wage rates can be renegotiated at any time. But in Southlandia, wage rates ar

Airline Industry Economic Indicators

Prepare a response analyzing the relationship among inflation, unemployment, and the business cycle in the airline industry. Then, assess the impact of inflation, unemployment, and the business cycle on the airline industry. Explain whether current economic conditions are more consistent with the Keynesian or classical economic


Analyse the possible causes of inflation. what policy or policies may be necessary to ensure the rate of inflation is low. relate your policy discussion to your analysis of the cause or causes of inflation" - 2000 word limit, full harvard ref.

If one expects the inflation premium to be 2%, the default risk premium to be 1%

1) If one expects the inflation premium to be 2%, the default risk premium to be 1%, and the real interest rate to be 4%, what interest rate would you expect to observe in the market place under the simplest form of market rates? a) 4% b) 7 % c) 2% d) 1% 2) What is the real rate of interest if the nominal rate of interest

Federal Reserve and Inflation

Read the two articles Fed Official Expects Growth and Are Inflation Expectations Rising from the Ashes? ? What exactly is the Federal Reserve? ? Do the effects of natural disasters, such as hurricanes, cause inflation or deflation? ? Who is in charge of the Fed? The following are the web sites that contain the articles nee

Market equilibrium and fiscal policy

1.If the market price is less than the equilibrium price, what is the relationship of quantity supplied to quantity demanded? What will happen to the price? 2. If the market price is greater than the equilibrium price, what will be created in the market, and what will happen to the price? 3. What is the final impact

rate of money growth

Suppose that the Fed unexpectedly increases the rate of money growth. Carefully explain the effect on short-term and long-term interest rates, and why those effects are different.


Hi, I have a brief question - I am fully aware of cost push inflation and its causes - ie how it affects firm's margins forcing them to push up their product sale price etc. I am also aware that demand pull inflation occurs where firms intend to continue producing at the same price level but are unable to meet their ful

Describing Marginal Product

The marginal product of labor a. measures how output changes as the wage rate changes b. is equal to the average product of labor divided by the amount of capital stock c. is greater than the average product of labor when the average product of labor is decreasing d. can be negative e. a and b

Economics - Definition of Common Terms

Please help with the following: 1. Define the following terms: Gross Domestic Product (GDP) Real GDP Unemployment rate Inflation rate Interest rate 2. Explain how the circular flow diagram illustrates the interaction of households, government, and business. Answer should be approx. 700-800 words in length.

Indicators, inflation & employment

Describe how the economic indicators, inflation, employment levels and interest rates, affect the long-term strategy and competitiveness of your firm/business and industry.