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Part A
1. Describe three (3) ways we can use macroeconomic analysis, with one (1) original example for each way.
2. You are running a small yard maintenance business for the summer. What do you expect to happen to the number of yards you can maintain in a day as you add workers if you don't purchase more capital equipment (like mowers and leaf blowers)? Provide at least two (2) supporting facts to support your response.
Part B
1. Using the real business cycle theory, explain two (2) effects of an adverse technological shock on the labor market and on the output market.
2. Suppose you were interested in increasing technological progress in your country. Suggest two (2) ways to do this.
The Fed sells $100,000 in Treasury Bonds to Chase Bank in the secondary market. a) What happens to the monetary base as a result b) If the reserve requirement is 20%, c=0.5 and e=0.001, what happens to the money supply as a result
sam arrived on campus at the beginning of the academic year with 480 to spend on textbooks and cds. the price of a
Assume you are looking at data for an economy that uses only two inputs, physical capital and labor. The table shows output for different combinations of labor.
At which level of initial wealth will he be indifferent among taking on the risk of getting no income and buying the insurance that removes the risk.
If the rate of return earned on reinvested funds is 15 percent also the industry reinvests 40 percent of earnings in the firm, what must be the discount rate.
Illustrate what effect would a period of rapid inflation likely have on the role of money.
A group of college students were given a short course in speed-reading. The instructor was curious if a monetary incentive would influence performance on a reading test taken at the end of the course. Half the students were offered $5 for obtainin..
Suppose you are an executive director of the top management team of an American multinational.
Consider the situation of the US debt and deficit Is the deficit and the debt a problem to be dealt with or not Explain. Why do those who worry say it is different from the World War II debt Can the FED keep buying up 40% of the government bonds f..
Susie is at the grocery store buying milk. She has a choice between milk from Dairy A or milk from Dairy B. She doesn't actually care at all which dairy her milk comes from. (a) Draw a possible indifference curve for Susie between milks A and B.
Aaron Hank is a star hitter for the Bay City Baseball team. He is close to breaking the major league record for home runs hit during one season, and it is widely anticipated that in the next game he will break that record.
Local government in a west Coast college town is concerned about recent explosion in apartment rental rates for students and other low income renters.
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