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Macroeconomics : Solution set
Base on your discussion, what is the most critical element(determinant) when considering the determinants of supply? In other words, what determinant has the greatest influence on the economy?
Illustrate what is the internal rate of return for the college investment that this person faces. Write out the equation used to evaluate the net benefit.
Illustrate what trends do you see in the data sets. What would you say to Support your assertions of trends with statistical evidence.
When and why were the inflation and unemployment rates negatively correlated? When and why were the inflation and unemployment rates positively correlated?
Explain the three criteria that are used to determine whether a particular variable is a worthy candidate to be selected as an intermediate target variable of monetary policy.
Explain why competitive markets normally lead profit maximizing firms to make choices about resource use that lead to an "efficient" allocation of resources to the market?
Describe how a change in investment can have big impact on GDP causing a nationwide slump. Recall that investment is "small" relative to the entire economy.
Is this a good model for unemployment? What would you add to study the problem more completely? What assumption does this model make regarding unemployment
Elucidate the pressures that increasing German interest rates put on the other European Union (EU) countries' currencies.
Illustrate what most people do not realize is that what the Fed is actually doing is changing money supply (and not interest rates directly). When money supply changes, interest rates automatically adjust to keep the money market in equilibrium.
Suppose that in a city there are 100 identical self-service gasoline stations selling the same type of gasoline.
Calculate the price elasticity of demand for paint and Illustrate the calculations.
Among which of these methods of encouraging growth would you suggest to a newly industrialized economy.
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