The tables below describe the employment and price level situation for the country of Gatoria over the past four years. Fill out the tables and use them to answer the following questions about how policymakers and politicians in the country might respond such a situation.
|
Year |
# Unemployed (in millions) |
# Employed (in millions) |
Unemployment Rate |
|
2015 |
16 |
210 |
|
|
2016 |
22 |
205 |
|
|
2017 |
20 |
195 |
|
|
2018 |
18 |
200 |
What has been happening to the unemployment rate since 2015? Use the AS-AD model to illustrate what has happened to the economy since 2015. Assume the economy was at full employment in 2015. From this initial condition, drawa new aggregate demand curve to show how the economy has changed. Describehow the new equilibrium is different from the old one both in terms of price leveland outputlevel.
In: Economics
Over short periods of time,
Group of answer choices
there is a nearly perfect positive, linear relationship between money growth and inflation.
there is no predictable relationship between money growth and inflation.
there is a nearly perfect negative, linear relationship between money growth and inflation.
In: Economics
Is the US national debt cause for concern? I need some of the negative implications that come from the increasing national debt. Please explain.
In: Economics
Consider an economy that abides by a standard Mundell-Fleming model with perfectly sticky prices, imperfect capital mobility, and flexible exchange rates. Suppose the foreign economy lowers its interest rate (assume this shock first manifests in the IS/LM/BoP space).
1. Consider the initial reaction of the shock. Which is true?
A. IS curve shifts left due to the change in the foreign interest rate.
B. IS curve doesn’t change since the foreign interest rate isn’t part of the IS curve.
C. IS curve shifts right due to the change in the foreign interest rate
D. The IS curve becomes steeper, but the shift direction is ambiguous
2. Consider the initial reaction of the shock. Which is true?
A. BoP doesn’t change due to perfect capital mobility.
B. BoP shifts up because domestic rates are higher than foreign rates
C. BoP shifts down, reflecting the lower foreign interest rates
D. The BoP becomes steeper, reflecting greater international interest rate differentials
3. The initial reaction in the IS/LM/BoP space generates
A. BoP surplus
B. BoP deficit
C. BoP balance
D. The result is ambiguous
4. The foreign exchange market will react in the following way
A. The Supply of FX rises due to higher domestic output
B. The Demand for FX falls due to the stronger domestic output
C. The Demand for FX rises due to the relatively higher domestic interest rate
D. The Demand for FX falls due to the relatively higher domestic interest rate Page 3
5. What is the impact on the USD?
A. Dollar strengthens
B. Dollar weakens
C. Dollar remains unchanged
D. The impact is ambiguous
6. In response to the change in the US$, the IS/LM/BoP system will equilibrate in what manner?
A. Only the LM curve will shift right
B. Only the IS curve will shift left
C. The IS curve shifts shifts left and the BoP shift Up slightly
D. Only the BoP shifts up
In: Economics
7. What is total utility and marginal utility? How do they affect the real world? Give example.
In: Economics
6. The Elasticity of the Supply of Labor. What is it? How does this affect us? Give example.
In: Economics
Consider the following statement: “Devoting a larger share of national output to investment will imply a higher consumption per worker and a higher living standard.” Do you agree with this claim? Explain, using the Solow model.
In: Economics
You are a hotel manager and you are considering four projects that yield different payoffs, depending upon whether there is an economic boom or a recession. The potential payoffs and corresponding payoffs are summarized in the following table. Project Boom (50%) Recession (50%) A $20 -$10 B -$10 $20 C $30 -$30 D $50 $50 If a manager adopted both project A and B simultaneously, the variance in returns associated with this joint project would be:
In: Economics
QUESTION 1
A tax on the buyers of smart watches encourages
a. sellers to supply a smaller
quantity at every price.
b. sellers to supply a larger quantity at
every price.
c. buyers to demand a larger quantity at
every price.
d. buyers to demand a smaller quantity at
every price.
QUESTION 2
Suppose that the demand for picture frames is highly inelastic,
and the supply of picture frames is highly elastic. A tax of $1 per
frame levied on picture frames will increase the price paid by
buyers of picture frames by
a. less than $0.50.
b. $1.
c. $0.50.
d. between $0.50 and $1.
QUESTION 3
Which of the following statements is correct?
a. A tax levied on sellers always
will be passed on completely to buyers.
b. Who bears the burden of a tax depends
on the price elasticities of supply and demand.
c. Government can decide who ultimately
pays a tax.
d. A tax levied on buyers will never be
partially paid by sellers.
In: Economics
In: Economics
Explain how to motivate managers with profit-sharing based on practical examples?
In: Economics
(American Government)
Is it always appropriate for the U.S. to become involved in international affairs? Why or why not?
In: Economics
How is the Law Implementation of Objects on Intellectual Property? please explain!
In: Economics
How has COVID-19 affected the growth of the United States Health Economy?
In: Economics