ECON6000: Economic Principles and Decision Making - Economics Assignment

Internal Code: MAS3341

Economics Assignment:

1) Do you think you can match the different projections? For example, do you think that a 5% increase in income is associated with a 10% tariff rate and a 2% inflation rate? Explain by linking your discussion to at least all of the following concepts. These must be discussed: o supply, demand and aggregated demand and aggregated supply, the Philipps Curve and the Laffer curve. 2) What impact would the different predictions of income development, inflation rate development and tariff rate development have on the potential demand of Schmeckt Gut? Conduct a multiple regression analysis (in log-linear form) with the interpretation of the results. Discuss and explain. 3) Discuss what the Board of Directors should do under each of your scenarios, based on your matching of the predictions.