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# Inflation

### Information on Inflation in general.

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

### 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

### Economic recession

Suppose that you are the chief economic adviser 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? Give reasons to support your strategy.

### MARR & Inflation Rate

Your brother needs \$5000 to go to college. He cannot pay you back for 5 years. Then he will pay you \$2,500 a year for the next 4 years. The first payment occurs 5 years from today and the total will be \$10,000. a) If your MARR is 10%, is this a good investment? b) If the inflation rate is 5%, is this still acceptable? Prov

### CPI versus GDP deflator

How do the CPI and the GDP deflator differ? Why do economists believe that the CPI overstates the rate of inflation? Is this an important problem?

### Inflation

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

### Is there a unique rate of inflation that corresponds to long-run equilibrium?

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?

### State the final impact of cost-push inflation on the price-level and real output.

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

### 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

### Gross Domestic Product, Real GDP, Unemployment Rate, Inflation Rate, Interest Rate

Please help me so that I can define the following: a. Gross Domestic Product (GDP) b. Real GDP c. Unemployment rate d. Inflation rate e. Interest rate I need to explain how the circular flow diagram illustrates the interaction of households, government, and business. Also, describe how current

### Maximum 401(k) contribution

What is a 401(k)? What is the maximum an employee can contribute in one year? If your employer stated that they would match your contributions up to 50 percent, and how much would you contribute?

### 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

### Interest rate prediction education

Make an educated guess as to what you expect to happen to short-term interest rates and long-term interest rates during the next year.

### 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.

### Velocity, Inflation, Money Supply

How would I find the rate the Fed should let the money supply grow in order to completely stop inflation, if the velocity of money is increasing by 3% and the economy is growing at a rate of 2.5% a year. Whats the difference between the statement "the money supply is fixed" and the statement "the money supply is exogenous"?

### small office complex

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

### Budget Lines Before and After Inflation and Income Increase

Inflation increases the prices of all goods by 20%. At the same time, Ina's income increases from \$50,000 to \$55,000. Compare the situation after both of these changes have happened with the situation before any of these changes have happened. a. After these changes, has Ina's budget line become steeper, less steep, or equall

### Inflation

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

### Limiting the powers of a workers' union

Give three reasons why a government might seek to limit the power of a union (workers' union)?

### 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.

Suppose you flipped an honest coin 10 times and heads came up 8 times. You are about to toss the coin another 10 times. Using adaptive expectations, how many heads do you expect? Based on rational expectations, how many heads do you expect?

### 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.

### What is the difference between real GDP and nominal GDP? Does GDP accurately reflect our nation's productivity?

During 2004, the national average gas price rose from \$1.50 a gallon to \$2.25 a gallon. The government has stated that the high price of gas will remain as it is. Discuss how this cost influences your decision to buy a new car. Based on your budget, would you buy the large car that gets 7 miles per gallon or the car that gets 25

### How do banks use Covered interest arbitrage to protect themselves, how dose inflation impact exchange rates, what is the difference in inflation between Ireland and the USA.

How does banks use "Covered interest arbitrage to protect themselves when we use the theory of purchase power parity, how dose inflation impacts exchange rates and what is the difference in inflation between Ireland and the USA?

### Calculating the Present Value of an Annuity

In a widely publicized case in California, the ex-wife of a doctor sued to obtain half the value of his medical degree, on the grounds that she had helped put him through medical school and was entitled to half of everything they owned under California's community property law. The wife's attorney asked for \$250,000 as her sh

### Money and banking

One of the largest single influences on the level of interest rates is inflation. There are a number of sites that report inflation over time. Go to ftp://ftp.bls.gov/pub/special.requests/cpi/cpiai.txt and review the data available. Note that the last columns report various averages. Move these data into an Excel spreadshee