Question 1: Provide a clear and specific definition, an equation, and an example for each of the following, except as noted: - The natural rate of unemployment (definition only) 12015 - If Canada can produce 300 tons of wheat per person and the USA can produce 200 tons of wheat per person, or Canada could make 30 cars per person and the USA could produce 40 cars per person, at the polar extreme: - -
(i) which country has an absolute advantage in making cars:
(ii) the opportunity cost of wheat and cars in both Canada and USA
(iii) which country has a comparative advantage in producing wheat No definitions or graphs but show all calculations) -A quota - a definition only - A surplus of supply over demand --just a diagram and a definition. No example - The four prime causes of unemployment in a nation - a listing, and a definition of each, no examples.
Question 2: What is quantitative easing (a definition) and under what circumstances would a central bank use it to stimulate the economy? Three sentences only.