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The answer to Macroeconomic Questions
A) How can output and unemployment rise at the same time?
b) What are the major macroeconomic goals of all societies?
c) Why are imports subtracted in calculating GDP?
d) How would you differentiate between economic growth and development?
e) Is zero inflation attainable and/or undesirable? Why?
Give at least three explanations of why economic reasoning would argue that this is to be expected.
Suppose we have a competitive market for a good with domestic demand and supply given by:
Elucidate is the point price elasticity of demand for Fantasy pinball machines
Suppose there is an increase in risk aversion by wealth holders in the sense that, other things equal, they want to hold more of their wealth in money (bank deposits) and less in securities.
A profit-maximizing monopolist never produces in the inelastic part of a linear demand curve. The short-run supply curve of a competitive firm is its MC curve.
Illustrate the difference among dollarization, a currency board, and a fixed exchange rate regime. Do you know of any countries that have recently adopted dollarization.
What distinguishes money from other assets in the economy? What are demand deposits, and why should they be included in the stock of money?
Lisa is a lawyer and there are two tasks that she hates to do, even though her job requires it. Draw a graph with hours reading on the horizontal axis and hours writing on the vertical.
The price elasticity of demand for both tissue has been estimated.
The American Nursing Association (ANA) reports that there is a nursing shortage. Develop initiatives to move nurses through graduate studies more rapidly.
Explain why is it wiser for the government to put a sales tax on a good that is demand inelastic than on one that is demand elastic.
Describe why the following statement is true: It is possible for average variable cost (AVC) to rise while average total cost (ATC) declines.
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