A) What are the four phases of the business cycle? How long do
business cycles last? How do the rate of unemployment and the rate
of inflation typically behave in each phase?
B) This council, an advisory body with business and union
representation, decided to rethink the concept of unemployment. It
was intent on unraveling the paradox of substantial new job
creation coupled with a high and largely unyielding jobless rate.
How could this paradox come about?
What are the four phases of the business cycle? How long do
business cycles last? Why does the business cycle affect output and
employment in capital goods industries and consumer durable goods
industries more severely than in industries producing consumer
nondurable?
What are the four phases of the business cycle? How long do
business cycles last? Why does the business cycle affect output and
employment more severely in durable goods industries than in
nondurable goods industries?
Discuss economic cycles, explain how these cycles happen, how
government policy influences the cycles, explain an asset bubble of
your choice, and analyze fiscal and monetary policy during the time
of such bubble. YOU MAY NOT CHOOSE THE 2007 BUBBLE
QUESTION 3
[100 marks]
What is the business cycle? How do economists analyse business
cycles?
[15
marks]
Net exports (NX) are a component of gross domestic product
(GDP). What are net exports and why are they included in GDP?
[10
marks]
Explain how an appreciation in the nominal interest rate would
affect the real interest rate, and net exports.
[15
marks]
Explain the difference between fixed and floating exchange rate
regimes. What are the costs...
What are the different types of goals in conflict? How do they
overlap and influence each other? What is the most effective way to
clarify or collaborate on setting goals? Explain
What is agenda-setting? How does the media influence
agenda-setting? Do you think this influence has had a positive or
negative impact on the policymaking process? Why? Please provide
examples to support your position.