Reference no: EM1373763
1. What is a government budget deficit? How does a federal budget deficit affect the economy? How does it affect the level of investment and interest rates? How does it affect the individual consumer? Give at least three examples in your response.
2. Are unions good or bad for the economy? How do unions at GM and Ford affect employment levels and wages? How do unions affect other industries in terms of employment and wage levels?
3. Determine the demand for loanable funds? Where does it come from? What is the supply of loanable funds? Where does it come from? How do interest rates affect the supply and demand for loanable funds?
4. Determine the prime rate, the discount rate, and the federal funds rate? Who controls these rates? What would you expect to happen in the general economy if these rates are all increased? Decreased?
5. Assume that an unpopular president was leaving office, and a very popular candidate was elected, and this significantly increased the public's confidence in the future of the economy. Using the aggregate demand/aggregate supply model, explain the effect on the U.S. economy.
6. How does a current budget deficit affect future workers? How could a policy by the current government to reduce the national debt hurt these future workers?
7. Monetary and fiscal policies are said to have "lags." What are lags and why do they exist? How are the arguments for and against active policy decisions affected by these lags?
8. The government often wants to stabilize or stimulate the economy. In order to do so, they must decide on the relative size of the money supply, taxes, government spending, or some combination of these alternatives. What are the difficulties encountered in deciding which policy to enact and the size or magnitude of these actions? Use examples when answering these questions.
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Forecast short run future changes in real gdp
: Explain why do economists attempting to forecast short run future changes in real GDP and employment look closely at information on business inventories and unfilled orders?
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Rate of labor productivity growth in us economy
: During Dec. 2007 and Dec. 2008, measured RGDP in economy fell by 1 percent as the US economy sank into a recession. Over that same time period total employment in terms of hours worked declined by 3.7 percent
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Describe an adjustment process using ad as analysis
: Assume that economy starts at equilibrium and the mpc = 0.75. Find the effect of a $300 increase in government spending once all the rounds of multiplier process are complete?
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Tightening of fiscal policy
: Use your own employment experiences and be sure to identify the sector in question, how would you relate the hiring practices of that industry or industries to fluctuations in the business cycle?
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Determine prime rate, discount rate, and federal funds rate
: Determine the prime rate, the discount rate, and the federal funds rate and who controls these rates? What would you expect to happen in the general economy if these rates are all increased or Decreased?
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Question about marginal product
: Suppose that in Canada the opportunity cost of producing two television sets is three bushels of wheat. Suppose that in the United States the opportunity cost of producing 2 bushels of wheat is 3 television sets.
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Create keynesian cross diagram
: Assume that initially the goods and services market is in equilibrium at potential of output and that the government budget is balanced,
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Wages in the united states exportable sector
: Use the Heckscher-Ohlin factor proportions framework with 2-factors, skilled and unskilled labor, to estimate the following arguments.
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Market structure, market equilibrium, and unemployment
: Good W and Y are made with intermediate goods A & B. The market value of A is $10 and the market rate of B is $13. The market value of W is $23, and the market rate of Y is $4.
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