Why is the money multiplier in the united states

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Reference no: EM131315160

Part A

1. Describe three (3) ways we can use macroeconomic analysis, with one (1) original example way.

2. You are running a small yard maintenance business summer. What do you expect to happen to the number of yards you can maintain in a day as you add workers if you don't purchase more capital equipment (like mowers and leaf blowers)? Provide at least two (2) supporting facts to support your response.

3. Using the real business cycle theory, explain two (2) effects of an adverse technological shock on the labor market and on the output market.

4. Suppose you were interested in increasing technological progress in your country. Suggest 2 ways

Part B

1. Why is the money multiplier in the United States smaller than the inverse of the required reserve ratio? Provide one (1)

Reference no: EM131315160

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