PART A
1) Explain, give a real life example and a solution for the the 4 Types of Market Failures – 1) Public Goods, 2) Externalities (positive and negative), 3) Monopoly Power, and 4) Inequality. Please use a Reputable Source, (such as the Wall Street Journal, Bloomberg News, The Economist, etc.) to find your real life example.
PART B
1) Using the St. Louis Federal Reserve – Fred website: http://research.stlouisfed.org/fred2/search, Find current economic indicators for real GDP, Prices, Inflation, Unemployment and Economic Growth . 2) Download the (Monthly data) for Prices, Inflation and Unemployment and the (Quarterly data) for GDP and Economic Growth for the last 3 years in an excel spreadsheet and insert an excel a graph for each series overtime in a separate graph. 3) Describe each series relationship and comment on whether it is increasing or decreasing and how do they compare to one another.
1) CPI – Consumer Price Index For All Urban Consumers: All Items, SA – seasonally adjusted – (Prices)
2) Percentage change in CPI from a year ago – (Inflation)
3) Civilian Unemployment Rate (Unemployment)
4) Real Gross Domestic Product, 3 Decimal (GDP) – Real GDP
5) Change in Real Gross Domestic Product, (Economic Growth)
