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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.

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

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

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?

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"?

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

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.

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

Testimony of the Fed Chairman Bernanke

Read the following url link to the Federal Reserve on the testimony of the Fed Chairman Bernanke given on Feb 15, 2007 and answer the questions followed. http://federalreserve.gov/boarddocs/hh/2007/february/testimony.htm a. Give a few reasons for the unexpected but significant positive impact of this testimony on the Wal