12. What are the three primary measures used in macroeconomics to assess the performance of aneconomy?1)2)work and actively seeking work. The opportunity cost of (of goods and services that could have been produced if the unemployed workers would have worked.) provides an overall indicator of output or production in the economy_) is the state a person is in if he or she cannot get a job despite willing to) is the production_) tracks the overall increase in the level of prices in the economy. Each3) (measure is important for tracking the short-run and long-run health of the economy and for creatingmacroeconomic models to address important policy questions.

Macroeconomics: - it is the study of various economic decisions taken on the account of the whole…

Answered: 12. What are the three primary measures…

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter2: Thinking Like An Economist

Section: Chapter Questions

Problem 6PA

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1. if there is an increase of unemployment rate in the labor market, what would you recommend as a set of policies or programs to address such problems. Illustrate your recommendations geometrically (i.e., graphically).
Question1) a) A labor market is in steady state equilibrium with unemployment rate u = 0.04 and probability of re-employment per month λ = 0.12. What is the probability of becoming unemployed in a month? b) What is the size of the labor force when the number of unemployed is U = 20,000? How long does an unemployment spell last on average? c) An increase in unemployment benefits makes the duration of unemployment spells 10 months. What is the new level of unemployment? d) In a simple job search model, the probability of an unemployed worker finding a job (λ) is equal to the probability of receiving a job offer (µ) times the probability of accepting it (p). Assume that the reduction in λ from part a) to part c) is not due to changes in unemployment benefits, but rather due to changes in µ. If p remains constant at 0.2, what is the reduction in µ? e) It is not realistic to assume that p remains constant. Explain why. Assuming that the wage distribution is fixed, in which direction…
1. Classify the following topics as relating to microeconomics or macroeconomics. a. A family’s decision about how much income to save b. The effect of government regulations on auto emissions c. The impact of higher national saving on economic growth d. A firm’s decision about how many workers to hire e. The relationship between the inflation rate and changes in the quantity of money 2. Classify each of the following statements as positive or normative. Explain. a. Society faces a short-run trade-off between inflation and unemployment. b. A reduction in the rate of money growth will reduce the rate of inflation. c. The Federal Reserve should reduce the rate of money growth. d. Society ought to require welfare recipients to look for jobs. e. Lower tax rates encourage more work and more saving
4. Which one of the following statements is INCORRECT? A Keynesian economists believe that the business cycle is caused by external factors, such as government interference in the economy.B Classical economists believe that market economies are inherently stable and fluctuations are ascribed to exogenous factors.C Classical economists believe that government should not intervene in the economy to try to smooth out the business cycle.D Structuralist economists believe that the market system is neither inherently stable norsystematically unstable.
1. Suppose real GDP is currently $500 billion. Assuming that the price level remains constant, this would mean that (first blank) (choices in picture) 2. Which would send a signal to firms to either: A. Increase production B. Keep production the same C. Decrease production
1. Which of the following question is one of the most interest for macroeconomics. (a). Why do foreigners immigrate to Ghana (b).What is the appropriate stance of antitrust policy (c).Why is there inflation ? (d). Which does the steel industry wants tarrifs ? 2. Which of the following statement is true ? (a). Final goods are produce in the same year as the reflected final good, whereas caital goods are produce in different year. (b). Capital goods are produced one year and final good are produced over a period of more than one year. (c). Intermidiate goods are typed of capital goods. (d). Capital goods are not final goods because they are used up in the same period in which they are produce.
41) Which of the following is a tool for achieving macroeconomic objectives? A) Fiscal policy B) Monetary policy C) Incomes policy D) All of the above 42) Macroeconomics is useful: A) only to governments B) only to business firms seeking to maximize their profits C) only to households seeking employment D) to all economic decision-making units 43) Consider a circular flow model with households, firms, and government. Which of the following is true? A) Households sell labour services and other resources to firms B) Households purchase resources from firms and convert them into goods and services C) The government does not purchase anything from households D) Households receive income from firms but not from the government 44) Payments such as employment insurance and welfare are called: A) employment income B) transfer payments C) compensation income D) business income 45) When households purchase government bonds, they: A) lend to the…
5 Linear stages theory, Structural-change model (Lewis two-sector model), International dependence/dominance model, Neoclassical model How do the contemporary models differ from the previous models?  Coordination failures  Complementarity Why do these models emphasize multiple equilibria and what does it mean? What problems may prevent economy from moving from a bad equilibrium to a stable one? Need to understand that graph What are the big push and O-ring theories (important to have a broad or general understanding of the two theories?)
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