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What the deficit would have been, had the government not inherited any debt. Discuss why the concept of a primary deficit may or may not be useful or relevant.
What will be the impact of this change on the equilibrium real rate of interest and the level of saving and investment.
Discuss the effect on employment, output, the real rate of interest, investment, and saving if households become more optimistic.
Trace through how the effects of a change in one market-such as an increase in the supply of labor- have effects on other markets.
Show the effect on the short-run production function and the full-employment level of output.
Show the equilibrium in the labor market. What happens to real wages, employment, GDP, and saving if the labor supply function shifts to the right?
How are leakages and injections balanced? Why will demand and supply in the product market be equal if leakages and injections are equal?
What is the name of the committee that sets monetary policy for the United States? Who are the members of this committee?
If U.S. investments increase and world interest rates rise, what is the effect on private investment in other countries? What is effect on U.S. national saving?
What would be the value of its exports? How does the answer change if, instead of borrowing, the nation lent $100 billion abroad?
Does this necessarily mean that the United States has a larger debt problem than those countries? Why or why not?
Why does it make a difference if a country borrows abroad to finance the expansion of its railroads or to finance increased Social Security benefits for the eld
Suppose a certain country has private saving of 6 percent of GDP. If the budget deficit is 1.5 percent of GDP, how does your answer change?
What is the exchange rate? How is it determined? What role do adjustments in the exchange rate play in ensuring that capital inflows equal the trade deficit?
What are the consequences of an increased government deficit for private investment in an open economy and in a closed economy?
Calculate the price index for 2016, using the price index formula, assume 2014 is the base year. (index # rounded to one decimal place)
If the price of wheat rises, how and in what direction will the equilibrium price and quantity of dinner roll change?
Incomes rise, shifting the demand for gasoline. Crude oil prices rise, shifting the supply of gasoline.
Question: Suppose the cross-price elasticity of demand between goods X and Y is -2.
If consumer incomes increase to $30,000, what will be the impact on equilibrium price and quantity?
Use the marginal revenue and marginal cost relations given above to calculate DVD out put price, economic profits
Why is equilibrium a desirable condition of the market? What factors move the market away from equilibrium?
What is equilibrium GDP? What will equilibrium GDP equal if government expenditures increase 200?
Calculate the velocity for the two countries in 1985. Why do you think the velocity was so much higher in Brazil?
A. What are the values of nominal GDP and real GDP in the current year?