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Assignment:
How does a college education increase one's human capital? Does this demand shift depending on the number of college graduates entering the job market? How does the price (potential wages earned) of various degrees affect the quantity demanded? What other possible factors besides the price (salary) of various degrees might shift the demand and/or the supply of these college graduates? What determines the equilibrium price (salary) of various college degrees such as business, nursing, or accounting? Discuss some possible different scenarios and the effect on the demand and supply of college grads.
Why might it be difficult for the Fed to formally adopt inflation targeting? Would inflation targeting be a good policy for the Fed in the present economic environment
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Describe the present economic crisis situation in Europe. Why has it been so difficult for the Europeans to find a solution to this problem? Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..
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Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.
How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.
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