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Essay Questions: (Make sure you thoroughly answer ALL parts of each question! Format requirements will be enforced.))
1. Japan has had a low inflation rate (measured at 0.1% per year) while Venezuela and Iran have experienced inflation rates of 18.7% and 17% respectively, and Zimbabweâ€TMs inflation rate has been measured at over 12,500% . Is this information sufficient to give us reason to believe that expansionary monetary policy will have greater real effects in one (or some) of these countries than in others? If so, explain and show the order in which you believe the four named countries be likely to experience real effects from expansionary monetary policy (list from “most likely†to “least likelyâ€). If this information is not sufficient, what additional information would you need? Obtain that information and show how you would use it to predict the likelihood of real effects from expansionary monetary in each of these countries.
2. Using the “New Keynesian†model, suppose households increase their rates of savings (due to some exogenous event). What will happen to real GDP and to the amount of labor employed, aggregate consumption, and aggregate savings? Compare these results to those predicted by the equilibrium business cycle model developed by Barro throughout the text.
What is the confidence interval for the proportion of households represented at a town meeting. Survey of households in a small town showed that in 850 of 1,200 sampled households.
What is the expected return of migrating to the city? Show your work. Determine whether the individual should migrate to the city or not. Show the criteria used in making his decision.
Illustrate what price and quantity will prevail if the monopolist is not regulated. What price-output combination would exist with efficient pricing.
Illustrate what was the growth rate of nominal GDP between 1996 also 1997. Why do economists use real GDP per capita to measure the economic progress.
Under oligopoly, if one firm in an industry significantly increases advertising expenditures in order to capture a greater market share, it is most likely that other firms in that industry.
What would happen to autonomous consumption if household debt fell and the interest rate rose over the same time period?
How does this policy affect national saving, domestic investment, net capital outflow, the interest rate, the exchange rate, and the trade balance?
The firm has monthly cash expenses of $180.what is the projected ending cash balance at the end of February.
Semi-Salt Industries began its operation in 1975 also remains the only industry in the world which produces also sells commercial-grade poly glutamate.
Annual demand and supply for the Entronics company is given by:QD = 5,000 + 0.5 I + 0.2 A - 100P, and QS = -5000 + 100P
Assuming that land and labour are complements in a farming production function, what would happen to the wages earned by workers and the rents earned by landowners in Texas.
If you have been employed in an organization that has gone through bald ridge or ISO process, share your experiences. What challenges did you face.
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