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What does a high rate of cyclical unemployment mean for economic growth relative to the long-term?
Consider a hypothetical economy in which each worker has to decide whether to acquire education and become a high-skilled worker or remain low-skilled. Education carries a cost of C. Explain why this is like a coordination problem. What is the comp..
Suppose Countries C and D use only labour as an input and produce only tables and tents. In A, a worker in a week could produce 4 tables or 2 tents. In B, a worker in a week could produce 6 tables. Initially the countries do not trade, and then tr..
(a) Set up the basic arbitrage equation that will ultimately pin down the value of the patent. On the left side show the return from investing pi dollars in a saving account. On the right, show the return from using these funds to purchase the pat..
What macroeconomic variable do you think corporate financial managers should be preparing for in the next 5 to 10 years?
Assume the reserve requirement is 16%. If the Fed increases reserves by $20 billion, what is the total increase in the money supply?
Suppose that the empire of Arendelle is still in a recession. Queen Elsa now cannot stand the sight of you and has relocated you to the Central Bank
The poverty rate would be substantially lower if the market value of in-kind transfers were added to family income. The largest in-kind transfer is Medicaid, the government health program for the poor. Let's say the program costs $7,000 per recipi..
what measure of GDP you are using (income based/expenditure based). Draw a graph (use Excel) to show GDP over time. List and discuss GDP's components
Illustrate what it says regarding the current state of the economy and the latest reading and trend.
What are the advantages and disadvantages of a weak versus a strong dollar for imports, exports, international and domestic markets?
Suppose that you are on a desert island and possess exactly 20 coconuts. Your neighbor, Friday, is a fisherman, and he is willing to trade 2 fish for every 1 coconut that you are willing to give him. Another neighbor, Kwame, is also a fisherman, a..
The BIG Idea Why do economists have differing views over which policy is most effective in producing stability and economic growth?
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