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Q1
The economy will contract (shrink) if leakages exceed injections. Do you agree with this statement? Why or why not? Q2
Describe the relationship between unemployment and real and nominal wages. Which is more important and why? What effects would either an increase or decrease in unemployment have on wages?
Q3
Some economist believe that Fiscal Policy can affect swings in the business cycle. Looking back to the book, it discusses the Japanese government and their government cutting taxes. Do you believe the Japanese were right or wrong to use Fiscal Policy in that manner? Why or why not?
Q4
Why is universal acceptability such an important characteristic of money? What other characteristics can you think of that might be important to market participants? What do you think might happen if we go away from money to a total electronic payment system? Discuss.
Q5
Do you advocate an active or passive policy approach? Why? Why might an active policy approach be more popular than a passive approach, especially during a recession? Discuss
Review and reflect on what you learned in the past 8 weeks. What is the most practical and easily applied lesson you learned? What was the hardest to grasp? Why? What else do you need to know about Macroeconomics?
Assuming individuals hold no cash (all cash is in bank vaults as reserves), calculate the simple money supply from the following reserves requirements and deposits in the systems. 5 Points each, 30 points subtotal
Suppose the assets of the Silver Lode Bank are $100,000 higher than on the previous day and its net worth is up $40,000. By how much and in what direction must its liabilities have changed from the day before?
Explain why do economists attempting to forecast short run future changes in real GDP and employment look closely at information on business inventories and unfilled orders?
1. using the traditional keynesian model explain how contractionary monetary policy would affect equilibrium aggregate
question 1 what is opportunity cost? explain with the help of an example why assumption of constant opportunity cost is
this is a multipart questionfrom an aggregate demand and supply perspective does it matter which programs are
In a speech in late 2011, President Obama argued that: "Probably the single greatest cause of the financial crisis and this brutal recession has been the housing bubble that burst four years ago". What did President Obama mean by the "housing bub..
Wednesday the price changed to 1.8275. Compute your profit-loss in USD on Tuesday and Wednesday.
Critically discuss that there is no satisfying theory that explains the behavior of firms in oligopoly markets. Which theories should I include in the analysis and give some examples relevant to these theories?
At what point will a firm shut-down? Support your answer with a graph. Explain, why will the firm continue to operate even when its profits are negative?
There are 15 million people living in Marketstan, of whom 9 million are working and 1 million are actively looking for work. What is Marketstan's unemployment rate?
A local video store estimates their average customer's demand per year is Q = 7 - 2P, and knows the marginal cost of each rental is $0.5.
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