An employer agrees to a three-year wage deal to pay $20 an hour plus increases equal to the change in the CPI to her employees. The CPI increases by 3 percent each year.   If the CPI is biased and the true increase in the cost of living is 2 percent a year, who gains and who loses?

Q: The factor ( 1 + i ) n in the formula is known as the future-value factor (FVF) or _____________…

A: The Future Value Factor (FVF), also known as the Future Value Interest Factor (FVIF), corresponds to…

Q: Briefly outline two reasons for a central bank choosing to purse a contractionary monetary policy,…

A: The basic goal of monetary policy is to stabilise the money supply across the economy and avoid…

Q: Illustrate the cash flow diagram. An investor bought a jaw crusher worth P25,000.00 with an expected…

A: Initial investment, C0 = P25,000 Required return, r = 6% Number of years, n = 8 years Let A be the…

Q: What are the commonalities and differences between regression and correlation

A: Variable: A variable is a characteristic of an observed item that can take multiple values.  ​From a…

Q: Identify and explain the three main characteristics and uses of money.

A: Money is something, for the most part acknowledged as a vehicle of trade, a proportion of…

Q: Which of the following statement is correct? A. Wants, needs and demand are essentially simply…

A: Meaning of Economics: The term economics refers to the situation under which there remain…

Q: 1) Answer the following as true, false, or uncertain and justify your answers. a) Even a totally…

A: Hi there , as per our guidelines we can only three sub parts of a question at once . Kindly repost…

Q: The local gas station agreed to pay its workers $6 an hour in 2018 and $9 an hour in 2019. The GDP…

A: Real wage rate is the wage rate adjusted for price changes. It is the real purchasing power of the…

Q: Suppose that Darnell and Eleanor are the only suppliers of pizza slices in a particular market. The…

A: Supply curve is the locus of points which determine the amount of goods that would be supplied by…

Q: c) What is the demand elasticity at the equilibrium of 2022? What is the supply elasticity? Which…

A: Thank you for the question. According to Bartleby's answering guidelines, we answer only the first 3…

Q: If machine has a first cost which is five times of its salvage value and the annual depreciation…

A: The straight-line method is the type of depreciation method. Annual depreciation=(First cost-Salvage…

Q: 6. Why is economics central to an understanding of the problems of development?.

A: We know that The development of an economy is based on the development of the infrastructure, the…

Q: If P50,000.00 compounded shall accumulate for 10 years at 8% compounded quarterly. Find the interest…

A: Interest is compounded quarterly, meaning interest rate is r/4 and number of periods it is…

Q: The following graph shows the market for cereal in Detroit, where there are over 1,000 stores that…

A: Market for Cereal is given More than 1000 stores are selling the cereal Government increases local…

Q: What effect will the following changes have on the DEMAND for coffee? (a) An increase in people's…

A: Introduction Demand is the quantity of a good which a consumer is willing and able to buy at various…

Q: 5. How did 3Com use business process management software to revamp its business?

A: Business operations are actions taken to further the company's objective. A business process is a…

Q: 1) A consumer has the utility function U (x1, x₂) = x1.5x2.5 (a) In the same graph, draw the…

A: We are given the utility function as:  U(x1, x2) = x10.5x20.5

Q: Explain the difference between direct costs, indirect costs, fixed costs, and variable costs,…

A: Economic cost looks at the gains and losses of one course of action versus another. It does this…

Q: Below is the production possibilities table for consumer goods (washing machine) and capital goods…

A: Opportunity cost implies to what you have to give up to purchase what you want in terms of other…

Q: The monthly market basket for consumers consists of pizza, t-shirts, and rent. The table below shows…

A: Consumer price index is a broad index that estimates price changes in a basket of goods and services…

Q: Venus Flycatcher Company sells exotic plants and is trying to decide which of two hybrid plants to…

A: We must determine the highest price customers would pay for an extremely accurate demand forecast…

Q: Metters Cabinets, Inc., needs to choose a production method for its new office shelf, the Maxistand.…

A: Given information Process type               Annualized fixed cost             labor…

Q: Real GDP is the of all goods and services produced in a period of time using prices. Group of answer…

A: Nominal Gross Domestic Product (GDP) is the value of total final goods and services produced in a…

Q: A $450,000.00 investment is made, to be followed by P250,000.00 in annual payments for three years.…

A: Given  The initial amount of money invested P=450,000 Annual payment received A= 250,000 Number of…

Q: Define the following terms in your own words Law of Supply Law of Demand Law of Supply and Demand…

A: "Since you have asked a question with multiple sub-parts, we will solve first three sub-parts for…

Q: The table below summarizes the productivity of workers in bread and shirt production in two parts of…

A: This table is actually showing the productivity of breads and shirts which is given here by using…

Q: e market supply curve of rubber erasers is given by QS = 35,000 + 2,000P. The demand for rubber…

A: When the market demand curve intersects the supply curve then equilibrium arises.

Q: Bruce Wayne has a child  and wishes to determine  what lump sum would have to be paid into an an…

A:

Q: How does one calculate the break-even point in units?

A: For producing the goods and services, costs of production has to be incurred. It involves fixed and…

Q: A tobacco company is interested in hiring a salesperson to promote smoking cigarettes in nightclubs.…

A: An individual will consider the expected value of events when faced with uncertainty. They will also…

Q: Explanation it correctly and details

A: Opportunity cost is the benefit lost while making a different decision. You must compare the…

Q: Indicate price elasticities of demand for the points in the following graph:

A: Price elasticity of demand refers to the degree of responsiveness of quantity demanded of a…

Q: The president of the United States issues a quota on the amount of steel that can be imported from…

A: A quota is a trade limitation put in place by the government that restricts how many or how much…

Q: ays Price ($/gallon) X₂ X² Ω- A binding price 6 Type your answers in all of the blanks and submit…

A: Since we know that price floor is a situation where a price above than the equilibrium price is set…

Q: Suppose that the US interest rate is 5.4% per annum and the interest rate in Japan is 2.8% per…

A: The forward rate is the expected future price for a currency. It is can be lower or greater than the…

Q: This graph shows the short-run aggregate supply curve (SRAS) of a hypothetical economy where the…

A: Nominal Gross Domestic Product (Nominal GDP) is the aggregate market value of all goods and services…

Q: If the current rate of unemployment is 5% and the natural rate of unemployment is 3% then cyclical…

A: In an economy, cyclical unemployment will exist if there is fluctuations in the business cycle,…

Q: 3. Assume that the set of alternatives is X= R2. Consider the family of budget sets B = {B(1,1),2,…

A: We will answer this question based on the graph:  We are given that with the budget (1,1),2 the…

Q: Answer of both parts will appreciate and i will rate positive  B) how can international aid assist…

A: Economic Development  Economic development initiatives are programs, policies, or actions that aim…

Q: If price is $25 when the price elasticity of demand is -0.5, then marginal revenue must be: $25.…

A:

Q: The US and Russia have signed a nuclear no-proliferation agreement to limit arms race. Each country…

A: Game theory provides a theoretical framework for conceptualising social situations including rival…

Q: #5. Mary and Daniel like to make tacos and cakes. The time it takes for Mary and Daniel to make…

A:

Q: Table 4-5 shows the demand and supply schedules for the low-skilled labor market in the city of…

A: Supply and demand  The connection between both the quantity of a good or service that producers want…

Q: 5. You borrowed $21,061.82 to finance the educational expenses for your senior year of college. The…

A: Given  We borrowed $21,061.82 at the beginning of the senior year of college and this loan will be…

Q: Why does the laissez faire approach to economic policy imply only minimal government involvement?…

A: Government involvement in the economic activities lead to the inefficient outcomes. However, it is…

Q: What information is given by the CPI?   The CPI tells us _______.     A. the price level in a given…

A: The general rise in the price of goods and services during a period of time with the fall in the…

Q: Illustrate the cash flow diagram. An investor bought a jaw crusher worthP25,000.00 with an expected…

A: Initial investment, C0 = P25,000 Required return, r = 6% Number of years, n = 8 years Let A be the…

Q: Suppose you have some money to invest-for simplicity, $1-and you are planning to put a fraction w…

A: We have :  R = wRs + (1-w)Rb  we are given: w = 0.5 => R = 0.5Rs + 0.5Rb  E[R] = 0.5 E[Rs] + 0.5…

Q: Show how an increase in productivity of workers affects real wages and employment using a standard…

A: Since you have asked multiple question, we will answer first question for you. If you want any…

Q: good 1 good 2 country A 1 2 country B 8 40 For which good does country A have a comparative…

A: Meaning of Comparative Advantage: The term comparative advantage for any economy arises when a…