Assignment
Create a financial plan to be prepared for economic fluctuations. Before developing your plan, answer the following questions and submit your answers with your plan:
• What factors can contribute to unemployment?
• How can technology lead to greater unemployment, or is it a benefit to the economy?
• Can inflation cause or effect unemployment? How?
Be sure to include the following in your plan:
• Average wage of your planned career.
• Living expenses with an amount planned for savings.
• Average unemployment compensation amount and duration.
• Requirements to receive unemployment compensation.
1. Say you owe money to Big River Bank. Will you gain or lose from an unanticipated decrease in inflation?
2. How could inflation make people turn to exchange by barter?
3. What impact will free trade have on economic growth?
4. True or False: Increasing the capital stock will lead to economic growth?
1. What would happen to short- and long-run aggregate supply if unusually good weather let to bumper corps of most agricultural produce?
2. What would keep wages from falling quickly in a recession?
3. What is a recessionary gap?
4. Why could you say that supply-side economics is really more about after-tax wages and after-tax returns on investment than it is about tax rates?
1. Why do virtually all societies create something to function as money?
2. How did the combination of increased holding of excess reserves by banks and currency by the public lead to bank failures in the 1930s?
3. What are the three primary reasons for the demand for money?
4. If nominal GDP is $200 billion and the money supply is $50 billion, what must velocity be?
1. What is the crowding-out effect?
2. Why were those who took out hybrid loans at far greater risk of foreclosure when the Fed began raising interest rates?
3. How are each of the following events likely to affect the value of the dollar relative to the euro?
o Interest rates in the European Union increases relative to those in the United States.
o The European Union price level rises relative to the U.S. price level.
o The European central bank intervenes by selling dollars on currency markets.
o The price level in the United States falls relative to the price level in Europe.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also include a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also Include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.