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Q. 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 Zimbabwe's 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 likely"). 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.
her current consumption choice is four bottles of wine and 10 pounds of cheese. The price of wine is $10 per bottle, and the price of cheese is $4 per pound.
If the average employee compensation grew at the rate of 3.5% per year, explain how many years would it take for it to double.
How will this technological advance impact production and pricing plans. How it will impact BlackSpot's profit.
you relate concepts in this week's readings to a prior real world experience. Experience does not necessarily have to be work experience. Examine market equilibrating process in relation to your experience.
Explain how will La Nina affect the price of Chilean wine. Assuming LaNina does not impact the California wine producing region, how will La Nina impact the market for Californian wine.
Describe how McDonald's and Wal-Mart elucidate changes in the macroenvironment affect individual firms and industries through the microeconomic factors of demand.
Demand for airline tickets fluctuates throughout the year, which affects the price of an airline ticket. Suggest the type of game that may be most appropriate for a specific airline to play to address the differences in demand and elasticity and the ..
Analyze several indicators of the macroeconomic conditions in an economy, such as GDP, unemployment, CPI, and other indicators such as interest rates, income.
What are the effects of an increase in aggregate demand in the aggregate demand and aggregate supply model consistent with the Phillips curve.
Why is it important to adjust for inflation when comparing nominal quantities at different points in time. What is basic method for adjusting for inflation.
Identify Nick’s utility-maximizing consumption bundle on your graph, including his indifference curve that is associated with his optimal bundle. e. What is the value of his utility at this bundle?
What happens when there is a surplus of imports brought into the U.S.? Cite a specific example of a product with an import surplus, and the impact that has on the U.S. businesses and consumers involved.
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