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What circumstances might lead to an equilibrium at a very flat portion of the AS curve? at a very steep portion?
describe the effects of increase occurs in the money supply above potential GDP on the price level and on equilibrium GDP in the long run.
What seems to be an improved trade-off between inflation and unemployment? What factors might improve the trade-off? What factors might make it worse?
Describe the Fed's tendency to lean against the wind. Do the Fed's policies tend to stabilize or destabilize the economy?
When did fiscal policy become expansionary? Which policy seems to have suffered more from policy lags?
Unions negotiate 3-year contracts. In which country is an expansionary monetary policy likely to have a larger effect on aggregate output?
What can the Argentine Central Bank do to try to lower the expectations to their projected inflation level of 11.2 percent?
Briefly explain how each might work and explain which type or types of unemployment (frictional, structural, or cyclical) each policy is designed to alter.
How might the spending of Asians on American goods be affected? What about Americans who have invested in these countries?
What is likely to happen to inventories? What is likely to happen to the level of real GDP? Is the economy at an equilibrium? When will things stop changing?
What is the size of the labor force? How many people are unemployed? What is the size of the working-age population?
Policy makers talk about the capacity of the economy to grow. What specifically is meant by the capacity of the economy? How might capacity be measured?
What was the rate of growth in real GDP during the most recent quarter? Has growth been increasing or decreasing?
How might you construct a measure of the change in the price level? What additional information might you need to construct your measure?
The Economics in Practice describes prosperity and recession as they are depicted in literature. Did the United States enter an economic expansion? Explain.
A recession occurred in the U.S. economy during the first three quarters. How is it possible that output rises while at the same time employment is falling?
What is the most recently reported unemployment rate? How has the number of payroll jobs changed over the last 3 months and over the last year?
What is the unemployment rate in your state today? What was it in 1970, 1975, 1982, and 2008? Do you know or can you determine why?
The unemployment is part of the natural rate and need not concern policy makers. Discuss that statement and its relevance to the economy today.
In thinking about the economic distress experienced during a recession which is the most important: high unemployment or falling GDP?
The restaurant sold all the wine to customers for $45 each. For the total wine production, calculate the value added of Larson and of the restaurant.
What do you see in the data? Can you tell by reading newspapers or watching cable news whether the country had entered an expansion? Explain.
Do you think these costs should be included in GDP? Why or why not? How could GDP be amended to include environmental damage costs?
How is housing treated in the National Income and Product Accounts? Specifically how does owner occupied housing enter into the accounts?
Write a paragraph or two describing the events or the economic conditions in one of the countries. Explain why they are growing or not growing rapidly.