Macroeconomics Assignment
1. List and describe four determinants of productivity.
2. Why would removing a trade restriction, such as a tariff, lead to more rapid economic growth?
3. What is the role of the financial system? Name and describe two markets that are part of the financial system in the U.S. economy. Name and describe two financial intermediaries.
4. What is a government budget deficit? How does it affect interest rates, investment, and economic growth?
5. Comparing stocks and government bonds, which type of asset has more risk? Which pays a higher average return?
6. What is diversification? Does a stockholder get a greater benefit from diversification going from 1 to 10 stocks or going from 100 to 120 stocks?
7. What are the three categories into which the Bureau of Labor Statistics divides everyone? How does the BLS compute the labor force, the unemployment rate, and the labor-force participation rate?
8. Why is frictional unemployment inevitable? How might the government reduce the amount of frictional unemployment?