In the AD-SRAS-LRAS model, what happens to the price level and the unemployment level in the short-run when there is an increase in consumption spending (C)?

Group of answer choices

a.Price level increases and unemployment level increases.

b.Price level decreases and unemployment level falls.

c.Price level increases and unemployment level falls.

d.Price level decreases and unemployment level increases.

Output gap is the difference between:

Group of answer choices

a.Nominal Output and Short-Run Output

b.Real GDP and Nominal GDP

c.Actual output and Potential Output

d.Final output and intermediate output

The unemployment level associated with the potential level of output is called the:

Group of answer choices

a.Seasonal Unemployment.

b.Structural Unemployment

c.Cyclical Unemployment

d.The Natural Level of Unemployment

The Sticky Price Theory states that:

Group of answer choices

a.SRAS is upward sloping because some firms are slow to respond to overall price level changes in the economy.

b.SRAS is downward sloping because some firms are slow to respond to overall price level changes in the economy.

c.LRAS is vertical because some firms are slow to respond to overall price level changes in the economy.

d.LRAS is downward sloping because some firms are slow to respond to overall price level changes in the economy.

The primary difference between Real and Nominal Wage is that:

Group of answer choices

a.Real Wage does not account for inflation, whereas Nominal Wage does.

b.Real Wage does not reflect the purchasing power, but Nominal wage does.

c.Real Wage is reported, while Nominal Wage is not.

d.Real wage accounts for inflation, whereas Nominal Wage does not.

Suggest a policy aimed at encouraging female workforce participation and briefly explain how it might achieve this goal (you can draw upon relevant topic 1 material in the textbook or your own research to identify such a policy). Be sure to reference the source of your information.
From your reading of the assigned article, discuss whether such a policy measure can have “unintended” positive impact on the environment.

5) The demand for a good varies A) directly with the prices of substitutes and also directly with the prices of complements. B) directly with the prices of substitutes and inversely with the prices of complements. C) inversely with the prices of substitutes and directly with the prices of complements. D) inversely with the prices of substitutes and also inversely with the prices of complements. 11) Over the past decade technological improvements in producing computers have increased A) both the supply and the quantity supplied. B) the supply but not the quantity supplied. C) the quantity supplied but not the supply. D) neither the supply nor the quantity supplied. 17) When the price is below the equilibrium price, the quantity demanded A) is less than the equilibrium quantity. So is the quantity supplied. B) is less than the equilibrium quantity. The quantity supplied exceeds the equilibrium quantity. C) exceeds the equilibrium quantity. So does the quantity supplied. D) exceeds the equilibrium quantity. The quantity supplied is less than the equilibrium quantity. 18) Which of the following correctly describes how price adjustment eliminates a shortage? A) As the price rises, the quantity demanded decreases while the quantity supplied increases. B) As the price rises, the quantity demanded increases while the quantity supplied decreases. C) As the price falls, the quantity demanded decreases while the quantity supplied increases. D) As the price falls, the quantity demanded increases while the quantity supplied decreases.

Use the following words to script that mirrors a conversation that you might have with a family member regarding annual property taxes paid on your house/property. a. Property Tax b. Percent of Appraised Value c. Mills (Millage Rate) d. Ad Valorem Tax e. Real Estate or Real Property

1. Suppose the economy is suffering from high rates of unemployment. What kind of fiscal policy should be adopted and what are the options for implementing that policy? Briefly explain and use an Aggregate Demand (AD) and Aggregate Supply (AS) graph to illustrate the policy.

2. First, describe what a budget deficit is in terms of the relationship between G and T. In the debate over government budget deficits the argument in favor of deficits is the one called “crowding in.” In your own words and a graph explain “crowding in” and be sure to explain all the arguments in favor of crowding in.

3. Recently 2 members of the Wisconsin state legislature wrote about the need for a constitutional amendment to balance the U.S. federal budget. They argued,

“A few days ago, the federal deficit hit $1 trillion. That’s right, the United States spent $1,000,000,000,000 more than we could afford in this fiscal year alone. Wisconsin families know that is not sustainable. We don’t rack up credit cards to the max, add tens of thousands in car loans, a hefty mortgage we can’t afford, and then expect our grandchildren to pay it all back.  

Embedded in these 4 sentences are three (3) arguments used to support a balanced budget amendment. Identify the 3 arguments made in the sentences above.

4. What are the direct counter-arguments to the three (3) arguments identified in Ques. 5 above by those who oppose a balanced budget amendment.

5. Money has distinct characteristics and functions. What functions of money does a Boggs bill and a Boggs transaction fulfill?

6. What’s the difference between fiscal and monetary policy? Explain (a) the different impacts – direct or indirect – of fiscal and monetary policy and (b) the different interests represented by the institutions that make fiscal and monetary policy.

Essay Question (18 pts)

7. With the unemployment rate at 3.5%, most economists believe that the U.S. economy is at or very near full employment. But there is a dispute over monetary policy. According to a recent news report, “President Trump again blamed the Federal Reserve for holding back the economy, saying the U.S. has "unlimited potential." "The Fed doesn't have a clue," Trump tweeted Tuesday as U.S. policymakers began the first of a two day meeting.” What is the dispute between the President and the Federal Reserve Bank? Use economic concepts from monetary policy and graphs to illustrate the dispute between the President and the Federal Reserve Bank. In other words, according to economic theory presented in class, what monetary policy should the Federal Reserve Bank be using? The President wants the opposite monetary policy. Use a graph to illustrate the differences and explain the effect of each on the macroeconomy.

Project 4

Prepare a chart of your major expenses and check the impact of inflation by using inflation calculator and make a comparative analysis for the year 2010 and 2019? You can use the link : https://www.bankofcanada.ca/rates/related/inflation-calculator/   (Eg: A car that costs $ 5000 in 2010 will cost $5804.26 in 2019 )

• Explain the concept behind the calculator’s calculation.
• What are the major item baskets for determining Canada’s CPI? What is the weightage of each item in the item basket?

What are the trends in the national minimum wage for the UK?

Please answer in an easy to understand way.

Monopolistic competition results in allocative

Inefficiency and productive efficiency.

Inefficiency and productive inefficiency.

Efficiency and productive efficiency.

Efficiency and productive inefficiency.

explain why the change is or is not likely to be a Pareto improvement:Replacing the system of agricultural price supports with a system of income supplements for poor farmers.

1. According to the Ricardian equivalence theorem, an increase in government spending (G) would:

Increase aggregate demand as consumer spending would not change

Decrease aggregate demand as consumer spending would decrease more than the increase in G

Not change aggregate demand as consumer spending would decrease by the opposite amount as the increase in G

Not change aggregate demand as household savings would decrease

2.  From a functional finance perspective, when the economy is in an inflationary gap the government should:

do nothing

run a deficit

run a surplus

run a balanced budget

2. Based on the Slutsky Equation and relevant theorems, discuss in your own words about the reactions of quantity demanded to price and income changes (Law of Demand - Theorem 1.13).

13. When the output gap is _______ (an inflationary gap), the unemployment rate is below the natural rate. When the output gap is _______ (a recessionary gap), the unemployment rate is above the natural rate.

A) positive; positive

B) negative; negative

C) positive; negative

D) negative; positive

14. Along a Phillips curve:

A) consumption depends on prices.

B) the inflation rate varies inversely with the unemployment rate.

C) the inflation rate varies directly with the unemployment rate.

D) prices and tax rates are directly related.

15. An increase in the expected rate of inflation would:

A) shift the short-run Phillips curve downward.

B) shift the short-run Phillips curve upward.

C) move the economy along the short-run Phillips curve to higher rates of inflation.

D) move the economy along the short-run Phillips curve to higher rates on unemployment.

16. The long-run Phillips curve is:

A) the same as the short-run Phillips curve.

B) negatively sloped, showing an inverse relationship between unemployment and inflation.

C) vertical at the non accelerating-inflation rate of unemployment (NAIRU).

D) unrelated to the NAIRU.

17. When the economic situation is such that monetary policy can no longer be used because the nominal rate of interest cannot fall below zero, it is called:

A) the liquidity preference.

B) the money neutrality.

C) the liquidity trap.

D) the money illusion.

18. The NAIRU is:

A) the inflation rate at which the unemployment rate does not change over time.

B) a trade-off between unemployment and inflation.

C) the unemployment rate at which inflation does not change over time.

D) a rate at which it is possible to achieve lower unemployment by accepting higher inflation.

19. If the economy is currently in a recessionary gap, real GDP will be________potential output.

A) below

B) the same as

C) above

D) in equilibrium with

20. If the SRAS curve intersects the aggregate demand curve to the right of LRAS, the result will be:

A) a recessionary gap.

B) an inflationary gap.

C) cyclical unemployment.

D) Long-run equilibrium.

Build a case for and against non-reciprocity principles in developing countries. Be sure to provide a comprehensive rationale for each position and examples.

1.1 For each of the following events, ceteris paribus, explain whether the production possibility frontier shifts inward, shifts outward or remains unchanged. Use a single diagram to motivate your answer.

1.1.1 The discovery of coal.

1.1.2 Training for workers that increases the amount of a good that can be produced per worker.

1.1.3 A shift in preference for one good compared to the other good.

1.1.4 Invention of a new process of production that reduces the resources necessary to produce a good.

1.2 “Market structure refers to the nature and degree of competition in the market for goods and services. There are a number of determinants of market structures for a particular good.” In terms of the statement above, discuss the following determinants for the four main types of market structures.

1.2.1 Nature of product

1.2.2 Entry and exit conditions

1.2.3 Economies of scale

Unemployment is a state that almost everyone experiences at some point in his or her career. For this assignment, you will write a two- to three-page essay on economic issues associated with unemployment.

Instructions

1. Research and write a short essay in which you describe how labor unions, the theory of efficiency wages, and the minimum-wage law affect the labor market. Your essay should answer the following questions:

• In what industries do labor unions play a significant role? How do labor unions affect unemployment?
• Describe how minimum wage works in the US. How does the minimum-wage law affect the unemployment rate? What is the connection between labor unions and minimum wage?
• What is the theory of efficiency wages and what impact does it have on unemployment?