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Journal entry questions are related to the application of the key concepts you learn to the real-world economic issues. The questions contain key economic principles and ideas related to the Macroeconomics topics you are learning. Please feel free to express your perspectives and state how the economic principles and ideas affect your economic decision making process. You should note that there is a limit to the number of words for the Journal entry. You can only enter the maximum 400 words.
Journal
The change in money supply affects the economic agents. Suppose the Federal Reserve increases the money supply to boost aggregate demand during recessionary pressure. How does the increase in money supply affect consumer spending and investment? How does it affect the firm or organization you work for? How do the Federal Reserve policies affect us as individuals (households)?
High rate of inflation is considered bad for the economy since it has various costs. What are the costs of inflation? Which of these costs do you think are most important for the U.S. economy? What are your shoe leather costs of going to the bank? How might you measure these costs in dollars?
the malthusian model to describe the situation in twilightia. in particular the relationship between its income per
As an worker of the world bank you have been proposed to research the requirements of a country with a particular economic concern. For this project choose a nation and an economic concern such as population, unemployment etc.
What is the profit maximizing output level for the typical firm? (Hint: Calculate MC for each change in output, then find the equilibrium price, and calculate MR for each change in output)
Should economic policymakers strive to achieve an inflation rate of zero percent? Justify your answer and be sure to explain the implications this would have on the economy.
Define interest rate risk. Explain the two types of interest rate risk. How can an investor with a given holding period use duration to reduce interest rate risk?
One of the major issues in macroeconomics is disagreement in the debate over policy activism versus policy rules. Illustrate what exactly is that disagreement.
Evergreen Landscapers, Inc., owes Friendly Finance Company $5,000. Evergreen enters into a contract with Suburban Office Park under which Evergreen promises to maintain the landscaping on Suburban's property.
Julie wins a $15 million lottery payable over 30 years. In years 1 through 4, she receives annual installments of $500,000. At the beginning of year 5, Julie sells her right to receive the remaining
Cresheim wrote Martin a letter stating that the oral contract had been made and setting forth all of its terms. Cresheim later refused to recognize the contract.
What condition holds when the firm is maximizing profits? Explain in words what the math of the answer means. (b) What conditions do the functions R(Q) and C(Q) have to satisfy for you to know that the quantity Q* that satisfies the condition in (..
In the national income accounting identity showing the equality between national saving and investment, what is the representation of private saving and what is the representation of public saving?
Compute the price-cost margin for every firm and indicate which has more pricing power and why.
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