unemployment
(a) Do you think that macroeconomic policy should be designed to achieve a measured unemployment rate of zero?
What occurs to economy, when credit availability is limited and credit is made costlier? Answer: Aggregate demands falls
Describe any two measures by which a Central Bank can attempt to decrease the gap. Answer: Central bank can decrease this gap by adopting two measures illustrated b
Examples of command economies are: a) the United States and Japan b) Sweden and Norway c) Mexico and Brazil d) Cuba and North Korea
Imports and American cars are much close however not perfect replacements. When the U.S. govt. tried to enhance American car sales by setting a price ceiling of P1 on imported cars: (i) The quantity of cars imported will drop/fall from Q0 to Q1. (ii)
Define the "full-employment" or "natural" rate of unemployment and give its approximate percentage rate as economists currently define it.
use two market diagrams to explain how an increase in state subsidies to public colleges might affect tuition and enrollments in both public and private colleges?
An illustration of how marginal utility diminishes takes place when: (1) Derek finds it tough to laugh politely when he hears a “new” joke for the fourth time now. (2) Amy Sue chooses she would instead have 150 hogs than 151 on her pig far
Bank rate: This is the rate at which the central bank loans money to commercial bank.
Do you think that macroeconomic policy should be designed to achieve a measured unemployment rate of zero? Why or why not should this be the case?
DISCUSS the experience of high GNP countries and low GNP with regard to PQLI.
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