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Describe verbally how, in the Keynesian model, an economy can end up in an equilibrium of persistent unemployment.
How would you increase your spending per month? How much would you change your saving? What is your mpc? What is your mps?
In the classical model, the demand for loanable funds curve slopes downward. Explain verbally why the supply of loanable funds curve slopes upward.
Who are the actors in this simple macroeconomic model? What is the role of each in determining the flow of currently produced goods and services?
Is the U.S. economy currently in a recession or an expansion? What does this mean for employment, inflation, and GDP growth?
What impressions do you have of the Great Recession that began in 2007? What were its impacts on people whom you know or have heard about?
describe how the labor force, overall unemployment rate, and unemployment rates by race and ethnicity, age, and education differ from the numbers given in text.
But why would any company want to pay more than it absolutely has to in order to attract workers?
Draw and label a graph illustrating this case, in which the going wage is $20, the equilibrium wage is $15, 50 million people want to work.
How would a household survey, following U.S. methods, classify each person? What is the labor force participation rate in Tatoonia?
Calculate the number of unemployed, The size of the labor force, The unemployment rate and The labor force participation rate.
What has been the relationship between labor productivity and median wages in the United States since World War II?
What are some of the reasons that an economy might offer less than the optimal number of jobs, according to classical theory?
What is the labor force participation rate and how is it calculated? How has it changed in recent decades for men and women in the United States?
What hypotheses must be satisfied for the real exchange rate parity to be verified? Comment on statement: an increase in productivity causes real exchange rate.
According to the intertemporal current-account determination models, it is desirable for an emerging country to accumulate deficits in current account.
This can be modeled as a fall in Y1, with Y2 remaining constant. What should happen to current account in this country if there is increase in migratory flow?
What factors should be considered by policymakers in the choice between a fixed exchange rate regime and a floating exchange rate regime?
Using the concepts seen throughout this chapter and Chapter 7, explain why only two of these objectives can be simultaneously attained.
Explain what consists in third-generation currency crisis models, highlighting the main characteristics as well as presenting examples of countries.
Explain the break of the Argentine currency board regime in 2001 using the exchange rate crisis models seen in this chapter.
Without trust, the product fall will be 5%. Will the market participants trust the exchange rate parity? In this case, will the central bank defend the parity?
Present economic reasons that justify diversification of investor portfolios. What factors, besides rate of return, can influence the behavior of asset demand?
What should be the necessary exchange rate variation for the NIIP to be stable for next period? Would you be able to measure the valuation effect in this case?
What characteristics are desirable for a currency to be used as an international reserve value? What conclusion can you draw based on the analysis of this data?