Ask Question, Ask an Expert


Ask Microeconomics Expert

problem 1: Unemployment

a) Many are concerned that the U.S. went directly from a period of high cyclical unemployment to a period of high structural unemployment. Should an unemployed person care which label an economist applies or is out of work is just out of work?

b) Unemployment near 0 percent is expected for a healthy economy. True or False? Why?

c) In terms of economic health, what do you think is more telling, the trend in job destruction or the trend in job creation?  If you could only see one of such series before making a guess on the economic health of a nation, which would you want to observe? Why?

d) Does the idea of ‘efficiency wages’ ring true to you? Why or why not?

e) HO page 271 displays a graph of both a broad measure of unemployment and the usual measure. Claim:  If the gap among the two were constant, policy makers would draw similar conclusions from either series. Yes? No? Maybe?  Describe.

f) In year 2007, Segolene Royal, in an unsuccessful bid for president of France, proposed that workers who lost their jobs would receive unemployment payments equivalent to 90% of the prior wages throughout their first year of unemployment. If this proposal were enacted, what would likely be the consequence on the unemployment rate in France? Why?

problem 2: Inflation

a) How is it that inflation redistributes income? Please give a numerical ex.

b) If an economy is experiencing deflation, will the nominal interest rate be higher or lower than the real interest rate? What is the equation which relates nominal rates, real rates and inflation?

c) The following appeared in a newspaper article: ‘Inflation in the Lehigh Valley throughout the first quarter of [the year] was less than half the national rate … Therefore, unlike much of the nation, the fear here is deflation—when prices sink so low the CPI drops below zero.”  Do you agree with the reporter’s definition of deflation? Was Lehigh Valley experiencing the deflation? Briefly describe.

d) Does the idea of ‘menu costs’ of inflation ring true to you? Why or why not?

e) Is anticipated inflation or unanticipated inflation more harmful to an economy? Why?

problem 3: Economic Growth

a) Briefly, what is the connection between rule of law and entrepreneurship?

b) Let’s state that Europe is set to grow at a long-term average rate of 1.5% and the United States at 2.5%. Is this one-percentage point difference a big deal? Briefly describe.

c) What is the curse embodied in the standard production function? How does technological advance permit an economy to avoid this curse?

d) In what significant way does knowledge capital differ from physical capital?

e) According to Joseph Schumpeter there is no good destruction. Fostering economic growth needs protection of the old instead of creating the new. Yes? No? Why?

f) Similar to a fundamental law in physics, it has to be that poor countries catch-up to rich countries. True? False? What is the story?

g) Wheelan wishes for Goldilocks Regulation. What is he talking about?

h) When it works, government industrial policy that funnels critical capital to just the right ventures and facilitates market coordination—in contrast to usually messy market competition—is quite compelling. What primary unappealing aspect of industrial policy leads numerous economists to prefer the messiness of market competition?

problem 4: AS/AD Analysis

a) What main variables cause the Aggregate Demand curve to shift in or out?

b) Why is the Long-Run Aggregate Supply Curve a vertical line; that is, why is long-run aggregate supply not influenced by the price level?

c) There has been much talk as 2009 that the United States has an output gap. Based on the AS/AD model, what do you think this output gap refers to?

d) Why can an unexpected rise in oil prices lead to the supply shock, shifting the Short-Run Aggregate Supply curve ____________________?

e) What does the dynamic AS/AD model capture that the basic AS/AD model doesn’t?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M91284

Have any Question? 

Related Questions in Microeconomics

1 the crr model european claimconsider the crr model of

1. The CRR model: European claim. Consider the CRR model of stock price S with T periods and parameters d (a) Consider the European claim X with expiry date T and the payoff X = g(S r ) = 1/S T 1[k,∞)(S T ). Show that th ...

Discussion questionplease read thoroughly and provide

Discussion Question Please read thoroughly and provide references • Manufactures of smartphones design products to be interactive with consumers. To remain competitive, designers are focused on getting a new product to m ...

Microeconomics assignmentdiscussion forumnote the video has

Microeconomics Assignment DISCUSSION Forum Note: The video has Closed Captioning. To activate it, start the video, mouse over the bottom of the video and click on the CC icon, then select from the menu. This week's discu ...

Assignmentyou have been asked to assist your organizations

Assignment You have been asked to assist your organization's marketing department to better understand how consumers make economic decisions. Write a 1,050-word analysis that includes the following: • The impact the theo ...

Can you write a great paper on a research economic topic10

Can you write a great paper on a Research economic topic 10 page paper Including abstract, introduction, content and conclusion, reference. You can choose any economic topics and analyze the issue from your own perspecti ...

Instruction please answer all questions all questions carry

Instruction: Please answer ALL questions. All questions carry equal marks. Please do not write over 2000 words for the entire assignment. 1. a. Using the graph shown, analyze the effect a $300 price ceiling would have on ...

You are an economic consultant and encounter a firm with

You are an economic consultant and encounter a firm with the following data: Quantity of Labor Fixed Costs Variable Costs Total Costs Quantity Marginal Costs 5 $150 20 6 $150 28 7 $150 34 8 $150 38 The wage rate is $8 pe ...

Assignment discussion-applying balanced scorecardin many

Assignment: Discussion-Applying Balanced Scorecard In many cases, managers end up in trouble as they direct their focus exclusively on cost savings. Cost cutting is always emphasized, but other impacts, such as decreased ...

Discussion questionconsider a group of documents that has

Discussion Question Consider a group of documents that has been selected from a much larger set of diverse documents so that the selected documents are as dissimilar from one another as possible. If we consider documents ...

Mcdonalds and the hindu culturein many ways mcdonalds

McDonald's and the Hindu Culture In many ways, McDonald's Corporation has written the book on global expansion. Every day, on average, somewhere around the world 4.2 new McDonald's restaurants are opened. By 2003, the co ...

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro