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Assignment:
Question 1. Here are three primary indicators of the health of our economy -- GDP, Inflation and unemployment. Which two should we be most concerned about today? Why? (Numbers might help support your position.)
Question 2. Many predict a coming recession. What is the significance of that? What are the remedies? Please, use your own words.
Question 3. You have $1,000 which you are considering depositing in the bank. Specifically, what economic and financial factors would you consider? (Citing one or more of Mankiw's 10 principles would not be sufficient.) For a few extra points, make some realistic assumptions and using some numbers you think appropriate, calculate how much money would you get back when you withdraw your savings in three years?
The soft drink industry is a duopoly with differentiated products. Two firms, Coca-cola and Pepsi, compete through Cournot quantity-setting competition. Denote the quantity that Coca-cola and Pepsi produce by Q1 and Q2, respectively.
A "scarce" good is a good: Answer for which it is impossible to increase production any further given the available resources and technology. for which there is a shortage at the current market price.
Assume the total demand for fish and the total supply of fish per month in the Kansas City fish market are as follows:
If the MAAR is 12 percent, compute the value of X that makes the two alternatives equally desirable.
Modify your game from Problem 1 to account for this private information, and find some equilibrium of this new game (remember that as in the class, each person will now take into account their private information when making their choice). Is the equ..
Suppose that a country put a billion dollars into circulation, and the banking system has a reserve-deposit ratio of 10 per cent.
Discuss different forms of foreign exchange regimes
Suppose that they are thinking of each specializing completely in the area in which they have a comparative advantage, and then trading at a rate of 2.5 pounds of potatoes for 1 chicken, would they each be better off? Explain.
Explain why do think the European Union countries decide to have a single central bank and a single currency, instead of just agreeing to maintain fixed exchange rates among their currencies.
In a free market economy, consumption and investment decisions are controlled largely by the government. Shape the future course of the national economy. Are necessarily controlled by big businesses. Require protection from foreign forces if indivi..
Discuss the real output and in ation expressions verbally - New Keynesian model with technology shocks
Do you believe that certain topics should be ‘off limits' when it comes to the subject matter of contracts? For example, should the Courts uphold contracts
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