Advantages and disadvantages of a common currency
Problem: Discuss the advantages and disadvantages of a common currency (the Euro for example).
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Students should research the definitions of the following economic terms: economics, supply, demand, macroeconomics, microeconomics, elasticity, inelasticity, and gross national product.
How can federal government spending crowd out private sector investment and consumption? Does the exent of crowding out depend on whether or not government spending is financed by taxes, selling Treasury securities to the public or printing money?
Problem 1) Explain and show graphically how each of the following changes would affect the shape of the AD curve: 1) Taxes are reduced 2) Nominal money supply increases
According to Okun’s Law, what is the current unemployment rate, if the natural rate of unemployment = 7% and full-employment GDP = 12,766?
a. Using an aggregate-demand/aggregate-supply diagram, depict the current state of the economy. b. If real GDP is now 1 percent below last year's value, how does the unemployment rate compare with last .year's rate? (Hint: Review Okun's law.)
If there was a mandate that firms had to pay all workers' health insurance, regardless of their time with the company, what would happen to general and specific training in labor markets?
Problem: Suppose the U.S. government is considering changes in economic and social policy to reduce wage inequality.
Suppose the firm is under contractual obligations to keep its output at current levels. What long - run adjustment if any, should the manager make in the firm's employment of labor and capital?
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