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How can monetary policy ease the pain of austerity? Illustrate in the graph.
Describe the market structure when iPad was introduced. In theory, how did Apple decide how much to produce and what price to charge?
In the final round of a TV game show, contestants have a chance to increase their current winnings of 1 million dollars to 10 million dollars.
What is the expected return to buying a ticket in this lottery? Will a risk-averse person buy a ticket in this lottery?
What alternative interpretations are given to the observation that individuals cannot, even by spending considerable money on information.
What is the efficient market theory? What implications does it have for whether you can beat the market?
If you found out that several company presidents were buying or selling stock in their own companies, would you want to copy their behavior? Why or why not?
Jennifer earns $40,000 per year, but her wages are not indexed to inflation. How much has the actual buying power of her income changed over that time?
What is an example of an inflation shock? How does a positive inflation shock affect the inflation adjustment curve?
Why, if unemployment is kept below its natural rate, will the rate of inflation rise? What is the long-run trade-off between unemployment and inflation?
What role do changes in expectations play in shifting the SRIA curve? What difference does it make whether expectations are adaptive or rational?
Why might a family in an LDC face a lower opportunity cost of having more children than a family in a developed country?
What would be the effect in world markets on the quantities and prices of products sold mainly by LDCs, such as minerals, agricultural goods, and textiles?
Nominal GNP in Kenya 9 billion shillings in 1967 and 135 billion shillings. What was total percentage change in real GNP per capita in Kenya from 1967 to 1987?
How have different countries fared in the transition? How do you explain the different performances?
What were some of the problems with the communist system, and why was the switch to a market economy expected to lead to increased incomes?
What are some of the roles that government can play in promoting economic development and growth?
What three characteristics of the assets might help differentiate the choice between them?
Discuss the likely unemployment consequences of reducing inflation in each of these two scenarios.
With unemployment around 4 percent and inflation low but with signs the economy was starting to slow, would you have lowered interest rates?
What will be the long-run effects on the real interest rate at full employment? Will this alter the short-run or long-run effects of the fiscal expansion?
Assume Ricardian equivalence is true. How will the current equilibrium real interest rate and investment be affected?
Using a supply and demand analysis of the capital market, explain what the impact of the tax cut will on the equilibrium real interest rate at full employment.
What trade-off between average unemployment and average inflation do policymakers face?
Determine the size of the simple spending multiplier and the total change in real GDP demanded following a $10 billion decrease in spending: