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Prepare a proposal recommending monetary policy actions designed to correct problems with spending, employment, and prices. Defend your choices.
Discuss how you could use the standard tools of expansionary monetary policy and expansionary fiscal policy to stimulate this economy towards economic growth.
Develop a response that includes examples and evidence to support your ideas, and which clearly communicates the required message to your audience.
Explain how you could use the standard tools of expansionary monetary policy and expansionary fiscal policy to stimulate this economy towards economic growth.
Explain whether this one-sided change would benefit neither country, just one country, or both countries?
What explanations can you give for the change? Make sure you check what has happened to interest rates and economic growth.
How does the current account deficit/surplus compare to the overall trade balance? How can you explain the difference?
Does there appear to be a relationship between the price of crude oil and the U.S. trade balance? Briefly explain the results of your findings.
By how much have the values of these exports and imports increased or decreased since 2008? Explain if the changes in the values reflect trade feedback effect.
Explain why the European Central Bank cannot selectively change interest rates in any of the 16 EU countries that have adopted the euro-for example.
As an economic consultant, what policy recommendations would you make for the economic development of Ishtar?
Do you recall the meaning of the elasticity of demand? perfect competition? factor markets? the production frontier? the law of diminishing returns?
How the change in input price, change in input productivity and changes in the legal institution environment relate to shift of Aggregate supply?
What is meant by Effective Exchange rate? Explain with examples how Nominal and Real Effective exchange rate are measured in an economy.
What is the probability that stocking steel will result in a negative present worth (PW)? How much should we be willing to pay this firm for their forecast?
Define monetary policy and who implements monetary policy. Identify the tools of monetary policy and the intended goals of using this policy.
What direct effects do higher interest rates have on household and firm behavior?
Explain why the implementation lag is generally longer and the response lag is generally shorter for fiscal policy than they are for monetary policy.
Explain why stabilization policy may be difficult to carry out. How is it possible that stabilization policies can actually be destabilizing?
How is it possible for output to increase without a proportional increase in the number of workers?
Explain how the simple Keynesian model and the life-cycle theory differ with respect to how this $50,000 jackpot might influence your consumption.
What impact would you expect increases and decreases in home value to have on the consumption behavior of home owners? Explain.
How much will Adam consume this year and next year? How did you arrive at your answer? What happens to his consumption this year? in succeeding years?
Why do expectations play such an important role in investment demand? How, if at all, does this explain why investment is so volatile?
At this rate of growth, how long does Okun's Law predict it would take for the economy to return to the unemployment rate of November 2007?