Question: Part 1: This assignment includes three applications in three major areas in Macroeconomics: 1) Gross Domestic Product; 2) Unemployment and Inflation; and 3) Macroeconomic Policy. You must complete all three applications. Each of the application options are located in the textbook.
You will discuss the Options listed for each of the applications and will complete a draft essay for each of the applications. About a pg each. APA format
APPLICATION 1: GROSS DOMESTIC PRODUCT:
Prior to completing the application, students will need to review Chapter 5 and 6 to best prepare for the applications.
OPTION 1: THE LINKS BETWEEN SELF-REPORTED HAPPINESS AND GDP
APPLYING THE CONCEPTS #3: Do increases in gross domestic product necessarily translate into improvements in the welfare of citizens?
APPLICATION 2: UNEMPLOYMENT AND INFLATION:
Prior to completing the application, it is highly recommended that students review Chapters 5 and 6 to gain a solid foundation.
Option 1: Declining Labor Force Participation
APPLYING THE CONCEPTS #1: What factors account for the decline in the labor force participation rate in the last decade?
APPLICATION 3: MACROECONOMICPOLICY
Prior to completing the application, students will need to review Chapter 17 - Macroeconomic Policy Debates.
OPTION 1: Would a Policy Rule Have Prevented the Housing Boom?
APPLYING THE CONCEPTS #2: Did the Federal Reserve cause the housing boom through excessively loose monetary policy?
Part 2: Provide short detailed answers to the questions below.
There are two approaches to measuring a country's macroeconomic activity, which are Gross Domestic Product, and National Income. What do each of these approaches measure. List at least one advantage and disadvantage of each approach.
1. Explain why buying a foreign car made abroad for $50,000 increases consumption by $50,000, but does not increase GDP.
2. What are the elements that make up GDP?
3. Explain why the very top athletes or entertainers would be more likely to change countries to reduce their taxes as compared with ordinary middle-class workers?
4. Suppose a country imposed tariffs on computer chips to protect its chip-making industries. What other types of firms in that economy might object to this policy?