Questions
1. Suppose that the economy is hit by the coronavirus crisis. One way to represent this...

1. Suppose that the economy is hit by the coronavirus crisis. One way to represent this in the model is as lower productivity z, since some businesses need to reduce operations, and workers are less productive.

a) Using the two-sided search model, determine the effects of lower z on the unemployment rate, the vacancy rate, the labour force, aggregate output, labour market tightness, and the wage. Use diagrams, and explain your results.

b) Assume that to restore employment after the crisis, the government implements policies that make it cheaper for firms to hire workers. Analyze their effect on the unemployment rate, the vacancy rate, the labour force, aggregate output, labour market tightness, and the wage. Use diagrams, and explain your results. In your analysis, only consider a change in the cost of hiring. Ignore changes in z in your answer.

(Note to expert: Please answer both a and b as they are both part of the same question)

In: Economics

"why company management matters". In an essay refer to lesson learned form gustav Schulenburg topic regarding...

"why company management matters". In an essay refer to lesson learned form gustav Schulenburg topic regarding the implementation of Corporate Govenance.

In: Economics

Do you think that "Gaia Theory" or "Earth System Theory" is a better name for communicating...

Do you think that "Gaia Theory" or "Earth System Theory" is a better name for communicating with non-scientific members of the public? Why? What are the advantages of each approach? Refer to the textbook on page 43.

In: Economics

The standard Mincerian wage equation is as follows: log(w)=β0+β1S+β2exp+β3exp^2+β4X+ϵ Q: Why is work experience and its...

The standard Mincerian wage equation is as follows:

log(w)=β0+β1S+β2exp+β3exp^2+β4X+ϵ

Q: Why is work experience and its square included in the equation? How does it relate to standard human capital theory?

In: Economics

Given the current situation, many firms were forced to shut down in the short-run. However, it...

Given the current situation, many firms were forced to shut down in the short-run. However, it is being assumed that many will reopen and go back to business in the near future. Look at a specific firm or industry and discuss the decision these firms need to make and how you believe conditions will impact these decisions.

In: Economics

Question 3 - 48 marks Answer the following true, false, or uncertain with an explanation motivating...

Question 3 - 48 marks Answer the following true, false, or uncertain with an explanation motivating your answer (you may use graphs and math to support your answer). 1. Suppose that the central bank follows an inflation-targeting rule. Then monetary policy makes income more stable against demand shocks while it makes income more unstable against supply shocks. [8 marks] 2. Under capital budgeting, the federal government selling a highway to the province of Nova Scotia and using the proceeds to retire federal debt would affect the federal budget deficit. [8 marks] 3. If neither investment nor consumption depends on the interest rate, then the IS curve is vertical and monetary policy has no effect on output. [8 marks] 4. Regulators can solve the moral hazard problem of rescuing a financial firm (by the government) in the midst of a financial crisis if they allow firm’s equity holders be wiped out, but protect firm’s creditors. [8 marks] 5. The Bank of Canada has complete control over the size of the money supply in Canada. [8 marks] 6. Fiscal policy has a relatively long inside lag, but short outside lag. In contrast, monetary policy has a relatively short inside lag but long outside lag. This is an argument for passive policy. [8 marks]

Only Answer part 3, 4, 5, 6

In: Economics

If the initial cash in the US economy is $1 Trillion, individuals tend to keep onesixth...

If the initial cash in the US economy is $1 Trillion, individuals tend to keep onesixth
of their income as cash and deposit the rest, and banks can lend 90 percent
of the deposit and reserve the remaining, then:
a) What is the total money supply (M1) in this economy? (5 points)


b) If the Federal Reserve wants to expand the money supply by five percent (because
of the current crisis), what types of policies can she use, and how? Explain and
support your claim using computation if it is required. (10 points)


c) Let’s say, after implementing these policies, the economy only increased by two
percent, explain why this happened. (5 points)


d) Now the government wants to stimulate the economy by ten more percent after
the failure of the previous attempt by the Fed (the size of the economy is $20
trillion, and it is predicted that it will be contracted by at least $2 trillion by the
end of this year), what can she do? Explain the possible policies that the Gov can
implement in detail, and use computation if necessary. (10 points)

In: Economics

Outline strategies on how the firm should respond to the changes in the economic indicators with...

Outline strategies on how the firm should respond to the changes in the economic indicators with the goal of maximizing revenues in the years ahead. How have they done in the past? What is their current state? What kinds of plans and possibilities do they have for the future? Is there room for improving what they do? Should new ventures be added or old ones subtracted? Then, discuss the firm’s global operations, and their influences on the regional and national levels. You also need to assess the value of multiculturalism and diversity in operating (managing) a company in a global environment.....my company chosen is Walmart

In: Economics

Required Words: 1000 An organization faces several internal and external risks in economic decision, such as...

Required Words: 1000

An organization faces several internal and external risks in economic decision, such as high competition, failure of technology, labor unrest, inflation, recession, and change in government laws.Therefore, most of the business decisions of an organization are made under the conditions of risk and uncertainty.An organization can lessen the adverse effects of risks by determining the demand or sales prospects for its products and services in future. Demand forecasting is a systematic process that involves anticipating the demand for the product and services of an organization in future under a set of uncontrollable and competitive forces.

Question 01: In your opinion, explain with examples how Economic Decision analysis is important in Demand Forecasting and cost (Required Words 1000)

.

Note: Please no copy paste from internet plagiarism is strictly prohibited

In: Economics

please read the scenario this is all I got that is provided by my professor If...

please read the scenario this is all I got that is provided by my professor

If the initial cash in the US economy is $1 Trillion, individuals tend to keep one-sixth of their income as cash and deposit the rest, and banks can lend 90 percent of the deposit and reserve the remaining, then:

a) What is the total money supply (M1) in this economy? (5 points)

b) If the Federal Reserve wants to expand the money supply by five percent (because of the current crisis), what types of policies can she use, and how? Explain and support your claim using computation if it is required. (10 points)

c) Let’s say, after implementing these policies, the economy only increased by two percent, explain why this happened. (5 points)

d) Now the government wants to stimulate the economy by ten more percent after the failure of the previous attempt by the Fed (the size of the economy is $20 trillion, and it is predicted that it will be contacted by at least $2 trillion by the end of this year), what can she do? Explain the possible policies that the Gov can implement in detail, and use computation if necessary. (10 points)

In: Economics

This week we explored the various theories of FDI and discussed how political ideology has shaped...

This week we explored the various theories of FDI and discussed how political ideology has shaped these attitudes. With that said, please identify a cost and a benefit of FDI from the perspective of a home country. When answering this question, select any home country of your choice excluding the United States.

In: Economics

Explain how inflation can redistribute income. Why does an unexpected rise in the inflation rate make...

Explain how inflation can redistribute income. Why does an unexpected rise in the inflation rate make workers and lenders worse off? Who is made better off? Why does correctly anticipated inflation does not have these distributional effects

In: Economics

Since the financial crisis of 2008, the world economy has grown steadily until March of this...

  1. Since the financial crisis of 2008, the world economy has grown steadily until March of this year. I began this semester by noting that we were in an era of unprecedented prosperity, even though we faced serious problems of economic inequality and global warming. We are now in what I would call a policy-induced global depression causing negative growth and rising unemployment. The ten years of growth were also associated with increased globalization which began to reverse before this crisis with the election of Donald Trump and the United Kingdom’s decision to leave the European Union.

  1. In one paragraph, explain why do many economists associate globalization with increased economic growth, especially in poorer countries?

  1. Has the global pandemic permanently hurt globalization (global trade, investment, and the movement of people across national borders)? Explain your answer in one paragraph.

  1. Use economic concepts (such as comparative advantage, rates of investment, and technological change) to explain whether or not you think economic growth will rebound after this crisis has passed. One paragraph only.

In: Economics

Imagine that you are the CEO of a wind power company, and you operate under the...

Imagine that you are the CEO of a wind power company, and you operate under the theory of sustainability. You have been asked to give a presentation to your management team about the advantages of environmental leadership. How will you explain these motivations in the context of your company and your philosophy?

In: Economics

Explain how inflation can redistribute income. Why does an unexpected rise in the inflation rate make...

Explain how inflation can redistribute income. Why does an unexpected rise in the inflation rate make workers and lenders worse off? Who is made better off? Why does correctly anticipated inflation does not have these distributional effects?

In: Economics