In 2019, the united states is experiencing an unemployment rate that is below its natural ... Your question has been answered Let us know if you got a helpful answer. Rate this answer Question: 1. In 2019, the United States is experiencing an unemployment rate that is below its natural rate... 1. In 2019, the United States is experiencing an unemployment rate that is below its natural rate of unemployment. That is, its labor force is more than fully employed. However, the country is suffering from a rising fiscal deficit, a rising government debt/GDP ratio, and an expanding current account deficit. In addition, after years of quantitative easing in the wake of the 2008-09 financial crisis and economic recession, the Federal Reserve must now roll back its quantitative easing and shrink its balance sheet. Suppose macroeconomic policymakers want to achieve all the following goals:

a) Lower employment to full-employment level to prevent overheating of the economy

b) Reduce the fiscal deficit and rein in the growth in government debt

c) Shrink the Central Bank’s balance sheet

d) Reduce current account deficit

e) Maintain a stable US dollar to prevent imported inflation

Would there be any monetary, fiscal, and trade policy combination that would allow the policymakers to achieve all these above-mentioned objectives simultaneously in the short-run? If your policy proposals are adopted, explain what will happen to America’s real GDP, real interest rate, and net capital outflow

Assume that there are exactly two countries: The United States and Australia. Also assume that these countries’ economies are closed (i.e. they do not trade or otherwise interact with each other) with one notable exception: The U.S. exports plastic to Australia, and Australia exports iron ore to the U.S. For this question, I will abbreviate the currency of the U.S. as USD and that of Australia as AUD.

a.Suppose that the U.S. imports 100,000 tons of iron at a price of 60 AUD per ton and exports 100,000 tons of plastic at a price of 55 USD per ton. If the exchange rate is 1 AUD = 1 USD, what is the U.S. trade balance in USD?

b.Suppose that the exchange rate changes to 1.1 USD = 1 AUD, and that prices in local currencies remain constant. What is the new price of iron in USD? What is the new price of plastic in AUD?

c.Suppose that the businesses that have made the orders leading to these import and export quantities are all locked in – meaning they are contractually obligated to complete the trade. If the exchange rate changes as in part (b), what will be the trade balance of the United States in USD?

d.In the future, businesses will make different purchasing decisions. In reaction to this change in the exchange rate: What will happen to the quantity of iron demanded by the U.S? What will happen to the quantity of plastic demanded by Australia?

e.Compared to your answer in (c), what will happen to the trade balance of the U.S. under the new quantities described in (d)?f.Graph a curve that shows the general shape of what will happened to the trade balance over time. Your x-axis should be time, your y-axis should be $.

Briefly describe the history of antitrust policies in the United States. What are the advantages and disadvantages of highly concentrated industries? Does market power encourage or discourage innovation? Under what circumstances should the government use its antitrust authority to limit industry concentration and market power?

1. For the purpose of these questions, assume the United States as a standard flexible exchange rate regime with free flows of capital:
   • All else equal, if the Federal Reserve increases the money supply and lowers interest rates, what will happen to the U.S. trade balance? Explain.
   • All else equal, if Japanese citizens decide to divest their U.S. stock market holdings, what will happen to the U.S. trade balance? Explain.
   • All else equal, if income in the U.S. increases, what will happen to the U.S. trade balance? Explain.

Between about December 2007 and June 2009, the United States was considered to be in a recession. The U.S. Gross Domestic Product fell approximately 3% from the third quarter of 2008 to the third quarter of 2009. Also, during December 2007 and June 2009, the Standard and Poor’s 500 index dropped by 38% and the unemployment rate climbed from 5% to 9.5%.

The macroeconomic situation affected almost all companies since higher unemployment affected personal consumption, which dropped from 10,140.3 Billion Dollars in Aug 2008 to 9,807 Billion Dollars in June 2009, a drop of 3.8 percent.

Starbucks is one of the companies affected by the December 2007 recession. The following table shows several ratios for Starbucks corresponding to the years 2006, 2007, and 2008. Use a stock price of 10.9 dollars per share for the year 2009.

By using the financial statements provided, calculate the ratios presented in the table for the year 2009 and answer the following questions:

a-       Were sales per dollar of assets impacted by the recession?

b-      which ratio shows the impact of the recession on sales per dollar of assets?

c-       Did the company operating profit margin increased, decreased, or was the same, between the years 2007 and 2009?

d-      Did the mix of debt and equity changed for Starbucks between the years 2007 and 2009?

e-      In what ratio can you see the change in the mix of debt and equity reflected?

f-        Did the value added by management, reflected in market to book ratio, increased or decreased between the years 2007 and 2009?

g-       Did the quick ratio increase or decrease between the years 2007 and 2009?

h-      Explain why you expect the quick ratio to increase or decrease during a recession?

i-        Use the ratios for the years 2007 and 2009 to explain if, in your view, Starbucks is in a better or worse situation in the year 2009 due to the recession.

j-        What areas should Starbucks improve for the years 2010 onwards, if any?

Suppose the mean salary for assistant finance professors in the United States is believed to be $131,600. A sample of 25 professors revealed a mean salary of $142,400 . Assuming the standard deviation is $10,000, can it be concluded that the average salary has increased using a 0.02 level of significance?

a. Write down the type of test you will conduct.

b. Write down the null and alternative hypotheses.

c. Construct the test statistic.

d. Conduct the test.

e. What do you conclude?

10. The nominal salaries paid to the President of the United States, along with data for the Consumer Price Index (CPI) for various years, are given below. Calculate the real presidential salaries in dollars (not cents) based on year 2000 dollars? Enter you answers in the space provided in the table. Show your work in the space below the table.

                        Nominal                      Average Annual CPI              Real

Year                Presidential Salary      (1982-84 = 100)                      Presidential Salary

1920                $75,000                       20.0                                         _______________

1940                $75,000                       14.0                                         _______________

1960                $100,000                     29.6                                         _______________

1980                $200,000                     82.4                                         _______________

2000                $400,000                     172.2                                       $400,000

If you were the President of the United States and had to choose between spending on improvements in infrastructure (bridges, roads, trains, etc.), providing health care guarantees to families, or enhancing our military strength, which would you choose? Explain why in as much detail as possible.

For this assignment I want you to assume you are the President of the United States, and China (one of our largest export customers) decides to ban all imports from the U.S. What effect would that have on the U.S. economy? Consider AD, unemployment, inflation, and recession as you contemplate your answer. Once you have determined a potential danger to our economy, what fiscal policy tool would you use to mitigate the damage of China’s decision?

In many cities and towns across the United States, the numbering system of the roads is based on a grid, similar to the latitude and longitude lines on a globe. Suppose the green lines in the following graph represent two east-west and two north-south running roads in a Midwestern town.

Write equations for the two horizontal and two vertical lines that represent roads in the town.






2. The Willis Tower (formerly known as the Sears Tower) in Chicago, Illinois, is the tallest building in the United States. Measuring 1,450 feet, the tower contains 110 stories filled with a combination of office and retail space. The base of the tower is made up of nine 75’ × 75’ squares. Suppose the square graphed on the coordinate plane below represents the base of the Willis Tower.

Write equations for the two horizontal and two vertical lines that pass through the square.



3. Think of another real-world situation that might involve horizontal and vertical lines. Write a description of the situation and draw the graph of a coordinate plane with two horizontal and two vertical lines to represent your situation. Draw the lines so that two of them pass through positive values and the other two pass through negative values on the coordinate plane. Then write equations for all four of the lines on your graph.