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
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
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
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
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
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
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,
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
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
1) Relatively high Japanese inflation may result in an increase in the supply of yen for sale and a reduction in the demand for yen. A)true. B)false. 2) If an actual put option premium is less than what is suggested by the put-call parity relationship, arbitrage can be conducted. A)true. B)false. 3) A weak dollar is no
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
Why is strong home currency mitigate the growth of inflation rate locally?
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
Http://stats.bls.gov/news.release/cpi.t01.htm 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
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
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.
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
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
Is there a unique rate of inflation that corresponds to long-run equilibrium? What determines the rate of inflation when the economy is at long-run equilibrium?
1. State the final impact of cost-push inflation on the price-level and real output. 2. State the final impact of demand-pull inflation on the price-level and real output. 3. Identify the three Federal Reserve tools used to undertake an easy monetary policy. 4. Identify the three Federal Reserve tools used to underta
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
International Economics - Let the exchange rate be defined as the number of dollars per British pound.
International Economics (TCOs E and I) Let the exchange rate be defined as the number of dollars per British pound. Assume there is a relatively lower rate of inflation in U.S. relative to that of Britain. a. Would this event cause the demand for the dollar to increase or decrease relative to the demand for the pound
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.
I am considering purchasing a small office complex that will generate a gross in rents of $600,000 per year.
I am considering purchasing a small office complex that will generate a gross in rents of $600,000 per year. Because of lont-term leases, rental income is not expected to change over the next 20 years. Next year, expenses will be $200,000. Thereafter, however, expenses are expected to grow with inflation at 4% per year. Inve
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
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
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.