I am trying to understand the effects of a reduction in the rate of money growth. In particular in relation to inflation and unemployment in terms of both rational and adaptive expectations.
What are absolute advantage and comparative advantage? Why will resources specialize according to their comparative advantages?
2. What are absolute advantage and comparative advantage? Why will resources specialize according to their comparative advantages? Why will this specialization increase production? Why will specialization increase trade? 7. Who is counted as employed or unemployed in the unemployment statistics? What groups in society are not
Why does the government support public education when the private sector also provides this service?
4. Why does the government support public education when the private sector also provides this service? Are these reasons the same as those for government providing services such as police protection and the National Weather Service? 5. What is the basic thrust of Keynesian demand-side policies? Why was economic policy based
What happens to the money supply, interest rates, and the economy in general if the Federal Reserve is a NET SELLER of government bonds? What happens to the money supply, interest rates, and the economy in general if the Federal Reserve is a NET BUYER of government bonds.
I need help with the following: Prepare a 500-word paper based on the home building industry which is clearly impacted by the macro economy . Include in your paper an industry overview. Also address the impact of real GDP, the unemployment rate, and the inflation rate as measured by the consumer price index (CPI). Also include
Two principles of economics that help explain how wages are determined in a market economy are: #1-People Face Tradeoffs and #2-Governments Can Sometimes Improve Market Outcomes Consider these principles when completing the assignment. Think of how they apply to the labor market for nurses. Research the labor marke
Could a labor union or a minimum wage law efficiently help to raise wages, increase employment, or improve working conditions in a firm that is: a) a perfectly competitive firm in both the product market and the resource market? Explain. b) an imperfectly competitive firm in both the product market and resource market? Expl
Suppose an employer offers a base wage of $20 per hour for the first forty hours of a work each week and overtime pay of $30 per hour for any hours beyond forty per week; the employer allows workers to choose their own hours of work. Suppose employee A chooses to work thirty-six hours per week and employee B chooses to work for
Why is GDP a poor measure of wealth distribution? Could the socio-demographic factors be an answer? What does wealth distribution means.
Economic Policy - Global Environment. See attached file for full problem description.
According to economist Albert Rees, there is evidence that agreements sometimes exist "among employers not to raise wages individually or not to hire away each other's employees...Except in the unusual case of professional sports, however, these agreements must be very difficult to enforce. Analyze the effects on wages and em
People of many different age groups and circumstances take advantage of part-time employment opportunities provided by the fast food industry. Given the wide variety of different fast-food vendors, the industry is fiercely competitive, as is the unskilled labor market. In each of the following circumstances, indicate whether t
These are a few review questions that have stumped me. Can anyone assist. Thanks! If the seller knows more about the good than the buyer, there exists: a. an externality. b. asymmetric information. c. moral hazard. d. a public goods problem If the market for used computers has only lemons (low-quality c
Theoretically, the President of the United States is suggesting increased spending for a missile defense system. He is also proposing a major long-term tax cut. What are some predictions of possible outcomes for the federal budget categories, the economy and the relative importance of each outcome during the next 10 years.
The Economic Theory of Human Capital - theoretical explanation for the skill-unemployment relationship
Using Human Capital theory (Becker, others), explain the relationship between skill and unemployment. Naturally, economists and the public at large usually think of skill-level having having an inverse relationship with unemployment. But you should be able to describe why this is, put it into terms of Human Capital, and perha
True or False (explain): 1. Imagine an economy where velocity is constant. The money supply is growing by 10% per year, while the growth rate of real GDP is 5% per year. The nominal rate of interest is 8%. The real interest rate must be 4%. 2. Unanticipated deflation redistributes income and wealth from borrowers to l
During the deflationary Great Depression Keynes advanced the idea of a "liquidity trap." Please explain the liquidity trap is presently stopping the Japanese economy from recovering.
1. Given that Y=900 and desired consumption and investment are given by: Fill in as many entries as you need to answer the questions. Assume that this is a closed economy (NX=0). R C I G S C+I+G 0 925 80 15 0.01 900 75 15 0.02 875 70 15 0.03 850 65 15 0.04 825 60 15 0.05 800 55 15 a) Find the int
Download the simplest version of the model, FinanceministerBasic.exe. Just click on the link (run the file rather than saving it) and it will prompt you to install the model to your PC. There is another version of this same model, FinanceministerDynaMo.exe. The only difference (which may be important from you view of matters
Is the following statement true or false and why?: "A monopolist can not hire fewer workers and pay a lower wage than a firm in a competitive labor market".
1. The members of the Board of Governors are appointed by A) the president. C) the Federal Reserve district banks. B) Congress. D) the member banks. 2. Intermediate products are A) goods that are purchased by the government. B) goods that are transferred to the states. C) products produced by the federal
1. Graph the US capital-labor ratio since 1948 (use thee sum of private equipment capital and private structures capital as the measure of capital, and civilian employment as the measure of labor). Do you see evidence of convergence to a steady state during the postwar period? Now graph output per worker for the same period.
1. Output, total hours worked, and average labor productivity all are procyclical. a) Which variable, output, or total hours worked, increases by a large percentage in expansions and falls by a larger percentage in recessions? (Hint: Average labor productivity = output / total hours worked, so that the percentage change in
In each of the following scenarios, predict what will happen to: 1) Employment, 2) real wages, 3) output, 4) the interest rate, and 5) the price level 1) There is a sudden decrease in consumption due to a decline in consumer confidence. 2) There is an increase in productivity (in the sense that each worker can now produce
1. Desired consumption and investment are C^d = 4000 - 4000r +0.20 Y; I^d = 2400 - 4000r. As usual, Y is output and r is the real interest rate. Government purchases, G, are 2000. a) Find an equation relating desired national saving, S^d, to r and Y. b) What value of the real interest rate clears the goods market
If the government increased its expenditures and reduced taxes, how would this policy affect the real output and the price level in the short run if the economy is: 1. experiencing 20% unemployment rate 2. experiencing mild recession 3. at the real output level
1. Contrast the structural-change and managerial-opposition hypothesis as they relate to the decline in unionism. Which view do you think is more convincing? 2. Explain the logic of each of the following statements: a. By constraining the decisions of management, unions reduce efficiency and productivity growth. b. As co
1. A consumer lives three periods, called the learning period, the working period, and the retirement period. Her income is 200 during the learning period, 800 during the working period, and 200 again during the retirement period. The consumer's initial assets are 300. The real interest rate is zero. The consumer desires pe
1. Consider an economy that initially has a labor force of 2000 workers. Of these workers, 1900 are employed and each works 40 hours per week. Ten units of output are produced by each hour of labor. a. What is the total number of hours worked per week in the economy? What is the total output per week in the economy? Wha
1. The following data give real GDP, Y, capital, K, and labor, N, for the U.S. economy in various years. Year Y K N 1960 2377 2606 65.8 1970 3578 3850 78.7 1980 4901 5569 99.3 1990 6708 7419 118.8 2000 9191 9849 135.2 Units and sources are the same as in Table 3.1. Assume that the production function is Y = A*(K^0.3