Ask Macroeconomics Expert

problem 1:

a) What is GDP? Discuss the two ways in which it is measured, and why the two ways must come to the same result. Taking the most common measure, what are its components (i.e. what is GDP composed of)? Discuss the importance of expectations about the future on the various components of GDP.

b) “Our country's GDP is bigger than theirs. Therefore, our social welfare (well being) is higher than theirs”. Discuss the validity of this statement in detail. If we do not use GDP, what other measures might we use and why might they be better? (This does not mean that we use GNP or NI or PI or DI).

problem 2
:

a) Define unemployment and the unemployment rate. Might we be able to say “Job Stats: Too Good to be true?”

b) You read that the unemployment rate has risen. Your mother says that the decline means the economy is falling back into recession. You disagree, and say that the economy may be getting better. describe why you may be correct.

c) Compare and contrast the “Natural Rate” and the “NAIRU” rates of unemployment? What does each imply about policies to reduce unemployment? Why? How is NAIRU supposed to be a “better” definition than “Natural Rate”? Are either of these good definitions? Why or why not?

d) Unemployment rates have been linked to inflation rates. describe this. It has been said that the “War on Inflation” dictates lower wages. describe.

problem 3:

a) Full employment (however defined) is often said to be the norm. Carefully answer how this may be true.

b) Full employment (however defined) is often said to NOT be the norm. Carefully answer how this may be true.

problem 4:

a) What is money? Discuss its functions and characteristics and how these characteristics are important to what money is and does.

b) Money is said to be the cause of modern civilization. Discuss.

c) Apparently, money is better at what it does than is any other system. Carefully discuss why people would want to use money as opposed to not using money.

problem 5:

a) What is money demand? Draw a graph and use it to illustrate your point. describe the transactions, speculative, and precautionary demands for money and how they can give us a money demand curve.

b) Given the Total Cost of Holding Money = ry/2n+fn, thoroughly describe what the equation means and how weobtain the Total Cost of Holding Money curve.

c) Let interest rates fall. Given the above equation, discuss what happens to the number of conversions. How does this help us find a money demand curve?

d) What happens if fees on ATMs fall? How does this affect the number of conversions and our demand for money?

problem 6:

666_long term growth.jpg

a) Making use of the two production functions given above, describe which portrays short run growth and which portrays long run growth and why. Be precise, and define and describe all economic notation given on the graphs.

b) Using reasoning from part a) describe which is more important for sustained long-term growth: more capital or technological change.

c) In addition to either parts a) or b), what are some other sources of long-term growth. List and briefly describe.

d) Your friend suggests that since the economy is growing, everyone is better off. You suggest that this may be true, but there are times when it may not be true. describe it to your friend.

problem 7: It says on your currency “This note is legal tender for all debts public and private”. Discuss one place in your daily economic life that currency is not usable for debts. Also, distinguish between “government created money” and “market created money”. [The correct answer to the first part is NOT metaphysical or metaphorical, such as paying your debt to society, or getting benefits from a God, or being unable to repay parents for your life].

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M92702

Have any Question?


Related Questions in Macroeconomics

Economics assignment -topic evaluation of macroeconomic

Economics Assignment - Topic: Evaluation of Macroeconomic performance of Australia and New Zealand. Task Details: Complete a research-based analysis and evaluation of the relative macroeconomic performance of Australia a ...

Introductory economics assignment -three problem-solving

Introductory Economics Assignment - Three Problem-Solving Questions. Question 1 - Australia and Canada have a free trade agreement in which, Australia exports beef to Canada. a. Draw a graph and use it to explain and ill ...

Question in an effort to move the economy out of a

Question: In an effort to move the economy out of a recession, the federal government would engage in expansionary economic policies. Respond to the following points in your paper on the actions the government would take ...

Question are shareholders residual claimants in a publicly

Question: Are shareholders residual claimants in a publicly traded corporation? Why or why not? In some industries, like hospitals, for-profit producers compete with nonprofit ones. Who is the residual claimant in a nonp ...

Discussion questionsquestion 1 what are the main reasons

Discussion Questions Question 1: What are the main reasons why Nigerians living in extreme poverty? Justify. ( 7) Question 2: Why GDP per capita wouldn't be an accurate measure of the welfare of the average Nigerian? Exp ...

Question according to the definition a perfectly

Question: According to the definition, a perfectly competitive firm cannot affect the market price by any changing only its own output. Producer No. 27 in problem 2 decides to experiment by producing only 8 units. a. Wha ...

Question jones is one of 100000 corn farmers in a perfectly

Question: Jones is one of 100,000 corn farmers in a perfectly competitive market. What will happen to the price she can charge if: a. The rental price on all farmland increases as urbanization turns increasing amounts of ...

Question good x is produced in a perfectly competitive

Question: Good X is produced in a perfectly competitive market using a single input, Y, which is itself also supplied by a perfectly competitive industry. If the government imposes a price ceiling on Y, what happens to t ...

Question pepsico produces both a cola and a major brand of

Question: PepsiCo produces both a cola and a major brand of potato chips. Coca-Cola produces only drinks. When might it make sense for PepsiCo to divest its potato chip operations? For Coca-Cola to begin manufacturing sn ...

Question again demand is qd 32 - 15p and supply is qs -20

Question: Again, demand is QD = 32 - 1.5P and supply is QS = -20 + 2.5P. Now, however, buyers and sellers have transaction costs of $2 and $3 per unit, respectively. Compare the equilibrium values with those you calculat ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As