Reference no: EM131137824
1) The Economy cannot be considered fully employed unless the measured unemployment rate is below 1%. Agree or disagree and explain your answer in a paragraph.
2)
A) Why would you expect the inflation rate to accelerate if the actual unemployment rate declined to a level lower than the "full employment" unemployment rate (NAIRU) and remained at that low level for a year or longer? Explain your answer in a few
sentences.
B) Draw an AS/AD diagram illustrating your answer to part (A). Be sure to label all lines and axes in your diagram clearly.
3)
A) Suppose Jean Splicer, an investor, buys $500,000 of shares of stock in a diversified bundle of Bio-tech firms and exactly one year later sells those shares for $530,000. Assume the value of the CPI at the date of Jean's purchase was 190 and rose by the sale date one year later to 200 while the value of the GDP Deflator was 120 at the time of her purchase and rose to 125 by the date she sold her shares. What was Jean's real rate of return on this investment?
B) Explain why you used either the CPI data or the GDPD data in your answer to part A.
4)
A) Suppose that several months of data showed the CPI increasing at a 4 % annual rate due largely to increases in the price of energy and food related commodities following several years when the CPI only increased by 2.2 % per year. Suppose this increase causes investor expectations of annual inflation to also increase from 2.2% to 4%. Assume, at the same time that fears of higher inflation create concerns that rising interest rates will derail the economic recovery and lead to another recession. Assume the resulting increase in risk aversion among investors drives the expected real rate of return required to equate investor demand to the existing supply of 1 year Treasury notes down to 0.2 % from .6%. What would you expect to happen to the nominal yields on 1-year Tnotes during the period over which these changes in inflation expectations and required real yields occurred? (Give a numerical answer if possible) Explain your reasoning.
B) Draw a supply/demand diagram of the US Treasury bond market to illustrate the effects on it of the developments cited in part A. (Note: you do not have to include the exact numerical price before and after the change in expectations.) Label your diagram clearly for credible answer!
5) Between Q1, 2014 and Q1, 2015 measured Output in the non- farm business sector increased by 3.2%. During this time period the unemployment rate fell from 6.6% to 5.5% and total hours worked in the nonfarm business sector increased by 2.8%.
What was the % rate of change in labor productivity over the year? Explain your answer briefly.
6) Suppose that the Federal Government announced a tax rebate of $500 for all individuals filing singly and $1000 for all families filing jointly or as head of household in the upcoming tax year. Further, suppose that the Government budget included a broad based reduction in Government spending on goods and services, whose total amount was equal to the total amount of the tax rebates. What would be the overall impact on AD of these policy changes or would the policy change effects completely cancel each other out?
Explain your answer in detail.
7) The Federal Reserve open market committee, which meets once every 6-8 weeks to discuss monetary policy met on Feb 10, 2016. Investors around the world are searching for clues about how soon and how fast the Fed will raise interest rates. In the FOMC report and Janet Yellen press conference following the meeting, what Aggregate Demand and Aggregate Supply circumstances influenced the Fed's guidance on the timing of future interest rate increases? (Note: the Fed does not use the words Aggregate demand and aggregate supply in its communications, but the underlying concepts very much inform their policy decisions).
Discuss overarching duty of the health care governing board
: Discuss the overarching duties of the health care governing board in mitigating the effects of medical non-compliance, as they apply to the rules of practice set forth in the Well Care Hospital governing board's manifesto.
|
Write a program that takes four command line arguments
: Write a program that takes four command line arguments: start, stop, step, and file. The first three arguments are nonnegative integers and the fourth is a string.
|
Calculate the hydraulic conductivity of this clay
: A falling-head permeability test was carried out on a clay soil of diameter 10 cm and length 15 cm. In 1 hour the head in the standpipe of diameter 5 mm dropped from 68 cm to 50.2 cm.
|
What effect do the closing costs have on the effective a i r
: The bank charges $4,000 for closing costs on a $200,000 loan with an annual percentage rate of 8.5% compounded monthly with a term of thirty years. The bank will not allow the closing costs to be added to the $200,000 borrowed. What effect do the clo..
|
Draw an as ad diagram
: The Economy cannot be considered fully employed unless the measured unemployment rate is below 1%. Agree or disagree and explain your answer in a paragraph.
|
Write your own version of wc
: Write your own version of wc. Your program is to receive a text file as a command line argument and then count and display the number of lines and characters in that text file.
|
Determine the flow (qi) into the excavation
: The excavation has to be kept dry. Determine the flow (qi) into the excavation
|
How much interest is paid over the life of the loan
: How much interest do the borrowers in Problem 12 pay during the second year of the loan? In Problem 12, determine the monthly payment for a sixty-month truck loan with an annual percentage rate of 11% and an initial principal of $17,000. How much int..
|
What subjective factors would affect investment decision
: Assume that the before-tax required rate of return for Deer Valley is 14%. Compute the before-tax NPV of the new lift and advise the managers of Deer Valley about whether adding the lift will be a profitable investment
|