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Technology and Productivity- What measures can government take to promote the development of practical technologies?
Explain how output per capita can grow faster than labor productivity. Is it possible for labor productivity to grow faster than output per capita?
Slowdown in Labor Productivity Growth What slowed the rate of growth in labor productivity during the 1974-1982 period?
How can each type be illustrated with a per-worker production function? What determines the slope of the per-worker production function?
However, many richer economies have little land or land of poor quality. How can a country with little land or unproductive land become rich?
What is the trend? Is there any information about the causes of and solutions to unemployment in that country?
Read the article What Currency Crisis? At the time of publication of the article, what was the price in Zimbabwean dollars of a loaf of bread?
Show what happens to the nominal interest rate and the equilibrium quantity of loans when both borrowers and lenders increase their estimates of the expected.
Real GDP Demanded In your own words, explain the logic of the income-expenditure model. What determines the amount of real GDP demanded?
In the model developed in this chapter, which components vary with changes in the level of real GDP? What determine the slope of the aggregate expenditure line?
Choose one article from past two years. Does it describe growing or shrinking investment in an economy? How will that investment trend affect economic growth?
Read the article Crisis? What Crisis? What is the possible upside to decreases in Japanese consumption spending?
Consumption and Saving Suppose that consumption equals $500 billion when disposable income is $0. Draw a graph of the saving function using this information.
If the MPC increases, what must happen to the MPS? How is the MPC related to the consumption function? How is the MPS related to the saving function?
What factors are assumed constant along the net export function? What would be the impact on net exports of a change in real disposable income?
Government Spending How do changes in disposable income affect government purchases and the government purchase function?
Nonincome Determinants of Investment What are some factors assumed to be constant along the investment function?
According to the lifecycle hypothesis, what is the typical pattern of saving for an individual over his or her lifetime?
What, if anything, happens to the saving function when the consumption function shifts? Explain.
What is the value of the spending multiplier? By how much would the real GDP demanded change if investment increased by $100 billion?
What are the components of consumption discussed in the case study? How did each component change in the recession of 2008-2009?
This chapter assumes that investment is autonomous. What would happen to the size of the multiplier if investment increases as real GDP increases?
What is the value of the multiplier? Explain why the multiplier is related to the slope of the consumption function.
By how much would MPC have to increase government purchases to achieve this goal?
How does the multiplier interact with the price change to determine the new real GDP demanded?