ECON 13 Lecture Notes - Lecture 4: Producer Price Index

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28 Jan 2016

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ECON 13 Full Course Notes

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The powerball jackpot is now up to 1. 4 billion. To answer this, we look at a subset of game theory called expected payo . We can nd this through the use of probability. The chance that you will win if you buy one ticket is. This is higher than the price of a ticket, so it makes economic sense to buy a powerball ticket, because the expected payo is higher than the price of the ticket. Also the stock market is plummeting because china is currently in de ation rather than in a- tion. We will cover in ation later in this course, and will use cpi (consumer price index) and ppi (producer price index) to measure in ation. They are, and it is because china is a major consumer of oil, making it a crucial buyer in a hugely oversupplied oil market.

Related Questions

1 . a) In the long run, prices are Ã¡exible. According to the quantity theory of money, what are the eÂ§ects of a 12% increase in the money supply in the long run? b) You are told that Korea raises its money growth rate from 10% to 15%. KoreaÃs rate of real GDP growth is 8%. What is the rate of inÃ¡ation before and after the change? c) If the nominal interest rate is 5% and inÃ¡ation is 3%, what is the real interest rate? If an increased rate of money growth raises the rate of inÃ¡ation to 6% in the long run, what happens to the nominal interest rate according to the Fisher eÂ§ect?

Totally lost on this.

A. Assume Px = 5, Py = 2 and Income =540. If a consumer has a MVx =2x/y, is it possible for her to achieve an interior solution? Ifso, what is the solution? If not, why not?

B. Given PxX + PyY = I and the information in question one aboveand a point system where px = 2, py = 8 and the number of pointsavailable is 450, is the consumer constrained by points? If so,what is the consumption point? If not, why not? Graph

purpleherring607

What will the multiplier be when the MPS is 0, .4, .6, and 1? What will it be when the MPC is 1, .90, .67, .50 and 0? How much of a change in GDP will result if firms increase their level of investment by $8 billion and the MPC is .80? If the MPC instead is .67?

ECON 13 Lecture Notes - Lecture 4: Producer Price Index

ECON 13 Full Course Notes

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