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1. In late 2010 economists were debating whether the U.S. economy was in a recession. GDP seemed to be rising, yet the unemployment rate was stuck at close to 10 percent. In thinking about the economic distress experienced during a recession which is the most important: high unemployment or falling GDP? Defend your answer.
2. When an inefficient firm or a firm producing a product that people no longer want goes out of business, people are unemployed,but that is part of the normal process of economic growth and development. The unemployment is part of the natural rate and need not concern policy makers. Discuss that statement and its relevance to the economy today.
Suppose you have just been appointed to the Federal Open Market Committee of the Federal Reserve. Your advisors report that the economy is growing slowly. Real GDP is at an annual growth rate of 0.01%. Unemployment is rising rapidly
If the saving rate does not change, but the population growth rate rises, what will happen with Avataria's GDP per capita What will happen with its GNP per capita How do these results contrast with the Solow model presented(b) Now assume that the..
Illustrate the difference among the midpoint price elasticity.
The Bureau of Labor Statistics reported and total number of unemployed workers.
mike patrik, a recent ME graduate from MIT, expects to take out a loan to purchase an SUV for $30,000 with a down payment of $10,000. The loan she takes out requires her to pay monthly installments of $400 for 4 years. What is the effective annua..
Suppose the present market conditions of Microsoft Corporation.
To repay a $1000 loan, a man paid $90 at the end of each month for fifteen months. What was the (annual) nominal interest rate? Assume monthly compounding.
What happens after a firm (private limited liability company) has gone bankrupt and is no longer in existence but after some time decides to go back when they have raised enough capital to continue their business.
Discuss the incomes and expenditures in terms of the Keynesian model. You can agree and/or disagree with the Keynesian assumptions.
Y : income, P2 : price of a substitute good for a 5 percent decrease in P2 find how much q1 changes ?
Illustrate what are some of the traditional international trade theories that support the concept of globalization.
Jason enjoys DVDs and spy novels and spends $60 a month on them. The price of a DVD is $20 and the price of a spy novel is $10. a. What is Jason's real income in terms of spy novel?
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