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ECO 2013 Principles of Macroeconomics
Question 1
Suppose that the empire of Arendelle is still in a recession. Queen Elsa now cannot stand the sight of you and has relocated you to the Central Bank of the empire. Free from the political and governmental constraints, you focus on what you can do to help stabilize the economy.
a) What type of monetary policy should be used to help the empire get out of recession?
b) Detail the processes of the above policy in regards to what will happen (i.e. the channels, variables, etc.) as discussed in class.
c) Using the equation of exchange, if the money supply is $4 trillion, the price level is 2, and the level of output (real GDP) is $6 trillion, then the velocity of money is equal to?
d) If you double the money supply, what is the most likely long-run effect on the price level and GDP?
In November of 2009 the Chelsea football (soccer) player, Didier Drogba, pledged 3 million pounds to the construction of a new hospital in his home country of Cote d'Ivoire. Suppose the hospital has been constructed
Rolf's Supermarkets now sell 12,000 lbs. of grapefruit per week at a price of $0.45 per pound. An economist has reported to management that the arc elasticity of demand for the grapefruit over the price range $0.45 to $0.35 per pound is -2.0.
"Religion is the sigh of the oppressed creature, the heart of a heartless world, just as it is the spirit of a spiritless situation. It is the opium of the people."
The impact of an increase in government spending (expansionary fiscal policy) on: GDP, the trade balance
consider a student who has finished her undergraduate degree and is considering pursuing an mba as a full-time student.
How will a tariff on imported cars help it to accomplish this task? How does the tariff affect domestic producer and consumer surplus?
Must write introduction ONLY on The Effect of Trade Liberalisation on Unskilled Workers in Developed Countries.
Who are the 1st responders? What are their responsibilities? What will be their biggest challenge? What will is an immediate concern and what can wait? What additional types of assistance (other than initial 1st responders) would be helpful here? How..
ECON910 - Demand and Supply model of exchange rate determination, briefly explain how the exchange rate of the AUD is determined in the forex market
RainAway, Inc., makes polymers used to coat the windshields of car's, planes, and boats-Complete the following table based on the RainAway product's price, output and costs per year:
Beef supplies are sharply reduced because of drought in the beef-raising states, and consumers turn to pork as a substitute for beef. How would you illustrate this change in the beef-market in supply-and-demand terms?
In the short run, prices may rise faster than costs. This chapter discusses why this might happen. Suppose that labor and management agree to adjust wages continuously for any changes in the price level.
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