What is the growth rate (g1) that can keep the unemployment rate constant? If the Central Bank aims to reduce the unemployment rate from 8 percent to 7 percent, what should be corresponding GDP growth rate (g2) be?
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- Suppose I lend my friend Peter $100 for one year, and he agrees to repay me with interest. We each have an expectation that the inflation rate over the coming year will be 5 percent, and so we agree that he will pay me back at a nominal rate of 7 percent interest. a) What real rate of return do I expect to receive? b) What happens if inflation turns out to be 8 percent over the year? Who is made better off and who is made worse off? c) What happens if inflation turns out to be 3 percent over the year? Who is made better off and who is made worse off?Harare Zimbabwe's central bank today raised its key intrest rate from 50 percent to 70 percent. The governor of the Reserve Bank of Zimbabwe said the higher rate was inteded to slow consumer spedning, increase foreign buying of Zimbabwe dollars, and slow the rate of inflation, currently running at approximately 200 percent a year. According to the World View after the key intrest rate was raised what was, a) the nominal intrest rate? b) the real intrest rate?"Which one of the following statements is INCORRECT? A Keynesian economists believe that the business cycle is caused by external factors, such as governmentinterference in the economy.B Classical economists believe that market economies are inherently stable and fluctuations are ascribed toexogenous factors.C Classical economists believe that government should not intervene in the economy to try to smooth out thebusiness cycle.D Structuralist economists believe that the market system is neither inherently stable norsystematically unstable . Consider the case of two countries, Afghanistan and the US, both producing carpets and fighter aircraft.The table below shows output rates per day in the two countries if all resources are fully and efficientlyemployed. Use this information to answer the question.Carpets Fighter aircraftAfghanistan 100 4US 500 25An appropriate international exchange ratio that would allow mutually advantageous trade to takeplace would be: A 1 aircraft = 25 carpets.B…
- How does high inflation lead to a recession in the country? Explain the role ofthe Government and the Central Bank to address the economic recessionproblem by using appropriate fiscal and monetary policies.What are the two biggest recessions in terms of length and magnitude from the graph, the shaded areas show recession and 2020 is not included? How does the unemployment rate react during the two main recessions you have identified? What was the level of the unemployment rate during the first and the last quarter of negative growth for those two recessions? why data for France for 1980s is not avaliable What do you conclude about the link between recession and the variation in unemployment?The following are examples of macroeconomic questions that remain debated among economists and policy-makers: 1. Does economic growth create inequality in income and wealth? 2. Do lower wages reduce unemployment? 3. Is there a trade-off between unemployment and inflation? 4. Is a large government debt a problem? 5. Should central banks target inflation in asset prices or only in consumer prices? Choose any two of the above questions and in each case briefly outline the economic reasoning behind different viewpoints.
- Use the table below to answer the following questions. FF - the federal funds rate PCE INF = PCE inflation PCE CORE = the core rate of PCE inflation GDP = real GDP GDP POT = potential GDP UR = the unemployment rate GDP and PCE inflation table DATES FF PCE INF PCE CORE GDP GDP POT UR 1974-04-01 11.25 10.0 7.1 5425.4 5404.6 5.2 1974-07-01 12.09 11.0 8.7 5372.8 5455.0 5.6 1974-10-01 9.35 11.5 9.9 5351.4 5505.2 6.6 1975-01-01 6.30 10.3 10.1 5286.7 5554.2 8.3 1975-04-01 5.42 8.6 9.1 5327.4 5601.5 8.9 1975-07-01 6.16 7.8 7.7 5415.5 5648.2 8.5 1975-10-01 5.41 6.8 6.8 5488.5 5694.4 8.3 1976-01-01 4.83 6.0 6.3 5612.4 5739.8 7.7 1976-04-01 5.20 5.6 6.0 5654.8 5784.9 7.6 1976-07-01 5.28 5.2 6.0 5683.6 5830.4 7.7 1976-10-01 4.87 5.1 6.0 5726.2 5876.9 7.8 1977-01-01 4.66 5.8 6.1…Please please answer this asap... What effects do you think monetary policy and fiscal policy has on the day-to-day operations of a business? Should a business owner be concerned with these kinds of macroeconomic issues? If so, why?Use the macroeconomic policy objectives as a starting point: economic growth andincreasing employment, stable and low inflation, a sustainable balance of paymentsposition, and the reduction of inequality.o HINT: Consider what macroeconomic variables are used to measure these objectivesand which agencies keep records of these. Are they measured on a monthly,quarterly, or annual basis? How have they changed over the last months leading upto May 2022? What has been the impact of COVID and the recovery, if any? What elsecan you see or say about these variables? Have the Macroeconomic objectives beenmet
- 10 Discuss how according to Schumpeter innovations emerge and what role they play for the long-term economic development. According to Keynes, why in advanced economies unemployment could be a structural rather than just temporary condition?Given the unpopularity of inflation, why don’t elected leaders always supportefforts to reduce inflation? Many economists believe that countries can reducethe cost of disinflation by letting their central banks make decisions aboutmonetary policy without interference from politicians. Why might this be so?Can someone please answer both questions asap?In a basic Keynesian macroeconomic model, if Effective demand is greater than the output then A. ED > Y(I > S) - V (decrease) Y (increase) B. ED > Y(I > S) - V (increase) Y (decrease) C. ED < Y(I < S) - V (decrease) Y (increase) D. ED < Y(I < S) - V (increase) Y (decrease) Question 2 What would happen in the market for loanable funds if the government were to decrease the tax rate on interest income? A. The supply of and demand for loanable funds would shift right. B. The supply of and demand for loanable funds would shift left. C. The supply of loanable funds would shift right and the demand for loanable funds would shift left. D. None of the above is correct.
