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Taking a long view of the US and other developed economies, we see with certain exceptions a more-or-less steady rate of growth in real income over the last couple centuries. Explain and discuss the mechanisms by which this has occurred, and contrast our experience with: a) the recent performance of many NICs (newly-industrializing-countries) in the last few decades; and b) the performance of many of the poorest LDCs (less-Developed-Countries).
All semester we have been tracking the economy to discern where it currently resides along the business cycle and where it seems to be headed over the next 6-9 months.
Create another diagram; once again start from an initial macroeconomic equilibrium. Explain both the SR and LR impact of a contractionary AS shock on Y. Use the appropriate diagrams and provide a brief real world example of this type of shock.
Plot the wage- setting and price setting equation or a property labelled graph and identity the nature rate of unemployment.
What are primarily intended to address the problem of insuring people who do not have health insurance? Would a public national health insurance system reduce total spending on health care in our economy?
What is the difference between contractionary and expansionary monetary policy?
The law of comparative advantage recommends that countries specialize in those products in which they have a comparative advantage, not an absolute advantage.
If the reserve ratio is 15 percent and commercial bankers decide to hold additional excess reserves equal to 5 percent of any newly acquired checkable deposits, then the relevant monetary multiplier for the banking system will be:
Discuss the feasibility of lower middle or low income countries resorting to fiscal stimulus to stave off recessions in their own economies. You can use one or more countries as examples.
hat is your expected utility without insurance? Suppose you can buy insurance that will cover the medical expenses but not the foregone part of your salary. How much is an actuarially fair policy, and what is your expected utility if you buy it?
Explain the effects of these shocks on the price level, real GDP, and the nominal interest rate. Use an upward-sloping, short-run supply curve in your analysis.
Explain why a monopolist will never set a price (and produce the corresponding output) at which the demand is price-inelastic.
Using a supply and demand graph, make one shift of wither the supply or demand curve to illustrate the likely result of this action.
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