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1. What type of unemployment applies to each of the following:
a. Printers laid off due to drop in demand for printed catalogues and flyers as firms go the internet to promote an advertise their products.
b. Factory workers in the UAE laid off as the plants shut down and move to Japan and Mexico
If these situations occurred, How would you classify the unemployment? what solution would you suggest.
2. a. What business cycle stage are we experiencing currently?
b. what are the different phases of business cycle?
c. What is happening during each phase of the cycle with: output, employment and inflation.
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
In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?
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.
Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?
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