Why is the Chair of the Fed Reserve considered by many to be the most powerful person in the economic world?
What will be an ideal response?
People in financial markets around the world dote on the Fed chairman’s remarks with high intensity. The reason for all the attention is that, in the view of many economists, the Federal Reserve’s decisions on interest rates are the single most important influence on aggregate demand—and hence on economic growth, unemployment, and inflation.
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The above figure shows the demand and supply curves for high-skilled and low-skilled labor. The wage differential between high-skilled and low-skilled labor is
A) $4.00. B) $5.00. C) $6.00. D) $7.00.
The first column of the following table describes the price movement of AOL Corporation stock over a five-year period. The second column gives the period's consumer price index
Calculate the real value of the stock for each time period using year 5 as the base year. If you purchased $1,000 worth of AOL Corporation in year 1, what has happened to the purchasing power of your original $1,000 investment when you sell the stock in year 5? Year AOL CPI 1996 $4.00 147.8 1997 $3.84 155.3 1998 $7.00 163.0 1999 $37.00 165.4 2000 $70.00 172.1