What is natural about the natural rate of unemployment

Reference no: EM13186992

1.Explain the relationship among savings, investment, and net capital outflow.

2.Describe the economic logic behind the theory of purchasing-power parity (PPP). What factors might prevent PPP from holding true?

3. Describe supply and demand in the market for loanable funds and the market for foreign currency exchange. How are these markets linked?

4.What is capital flight? When a country experiences capital flight, what is the effect on the country's interest rate and exchange rate?

5.List and explain the three theories for why the short-run aggregate-supply curve is upward sloping.

6.Suppose that survey measures of consumer confidence indicate a wave of pessimism is sweeping the country. If policymakers do nothing, what will happen to aggregate demand? Explain what the Fed should do if it wants to stabilize aggregate demand. If the Fed does nothing, explain what Congress might do to stabilize aggregate demand.

7.What is "natural" about the natural rate of unemployment? Explain why the natural rate of unemployment might differ across countries.

8.What causes the lags in the effect of monetary and fiscal policy on aggregate demand? What are the implications of these lags for the debate over active versus passive policy?

9.Some economists say that the government can continue running a budget deficit forever. How is that possible?

10.What is the theory of liquidity preference? How does it help explain the downward slope of the aggregate-demand curve?

Reference no: EM13186992

Questions Cloud

Effects of increase in interest rate on lonable funds : stuck on these an open economys GDP is always given by. 1.Y=C+I+G+T 2.Y=C+1+G+S 3.Y=C+I+G 4.Y=C+I+G+NX other things the same, an increase in the U.S interest rate causes the quanity of loanable funds supplied to 1. rise bc net ccapital outflow and do..

Develop specific hypothesis : Develop specific hypothesis as to why generic drug purchasing behavior has not been greater

Popular sovereignty-limited government : how were these basic constitutional principles worked into the Constitution of 1787: popular sovereignty, limited government, rule of law, federalism, separation of powers, and checks and balances

Describe the significance of the american revolution : Describe the significance of the American Revolution to the development of the United States as well as to other countries of the world

What is natural about the natural rate of unemployment : Suppose that survey measures of consumer confidence indicate a wave of pessimism is sweeping the country. If policymakers do nothing, what will happen to aggregate demand? Explain what the Fed should do if it wants to stabilize aggregate demand. I..

Aging in modern society today : What are some of the various self induced and socially generated negativeness associated with aging in modern society today?

Robertsonian translocation : Why would Down syndrome resulting from a Robertsonian translocation not be affected by the age of the mother?

Under the new deal-labor unions : Under the New Deal, labor unions were

Difference between motivation and job satisfaction : What is the difference between motivation and job satisfaction, class? And why should managers be more concerned with motivation than with job satisfaction? Or should they? Why?

User Account

All Pages