Macroeconomics (9th Global Edition)
9th Edition
ISBN: 9780134141534
Author: Andrew B. Abel, Ben Bernanke
Publisher: Pearson Global Edition
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Chapter 1, Problem 1NP
To determine
(a)
To calculate:
The average labor productivity in 2014 and 2015.
To determine
(b)
To calculate:
The growth rate of average labor productivity.
To determine
(c)
To calculate:
The
To determine
(d)
To calculate:
The inflation rate.
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The basic difference between macroeconomics and microeconomics is:
Group of
answer choices
microeconomics explores the causes of inflation while macroeconomics focuses on the causes of unemployment
microeconomics concentrates on the behaviour of individual consumers and firms while macroeconomics focuses on the performance of the entire economy
microeconomics concentrates on the behaviour of individual consumers while macroeconomics focuses on the behaviour of firms
microeconomics concentrates on individual markets while macroeconomics focuses primarily on international trade
A broader definition of macroeconomics and its relationship with the level of production, unemployment and inflation of a country.
Briefly explain how one or more of the microeconomic components, namely consumption,investment, supply and demand for money influence macroeconomic outcomes and formulations of the following macroeconomic theories:a. Solow Growth Model b. The Mundell-Fleming model c. Neoclassical Model of Investment Use mathematical equations and graphs where necessary.
Chapter 1 Solutions
Macroeconomics (9th Global Edition)
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- Macroeconomics is concerned with: only long-run trends in economic activity. only short-run fluctuations in the business cycle. both long-run trends and short-term fluctuations in economic activity. only with changes in the overall price level.arrow_forwardEconomists forecast future economic conditions by studying variables that tend to fluctuate in advance of the overall economy. The most significant of these variables are known as leading indicators, and they compose the index of leading economic indicators. Which of the following variables are measured as part of this index? Check all that apply. Supplier deliveries The ratio of elderly to nonelderly workers New orders for consumer goods Stock prices The money supply True or False: Businesses and government care only about long-run economic forecasts, because they cannot adapt policy or output to accommodate short-run fluctuations. False True Suppose the most recent data show that the average initial weekly claims for unemployment insurance have recently decreased. This change suggests ____ period in the coming months.arrow_forwardWhy is macroeconomics important? a. it helps in determining appropriate fiscal and monetary policies b. it gives a picture of the economic problems of the country c. All of these options are correct d. it provides answer to address national economic problemsarrow_forward
- For the past several months, per capita output has grown more and more slowly, and unemployment has fallen, but both trends appear to have leveled off. Where in the business cycle is the economy? A.At a peak B.In a recession C.At a trough D.In an expansion Macroeconomics focuses on: A.The economy as a whole B.Individual decisions C.Wages D.The allocation of scarce resourcesarrow_forwardDiscuss the circular economy.arrow_forwardWhy do some economists believe that better inventory control software may help to reduce the frequency and severity of recessions? Could differences in technology explain why recessions appear to be more frequent and more severe in poorer countries?arrow_forward
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- Classify each of the following as a supply shock or a demand shock. Use a graph to show the effects on inflation and output in the short run and in the long run: a. Households and firms become more optimistic about the economy. b. Favorable weather causes an increase in crude palm oil production in Malaysia. c. Typhoon Rai hit Philippines and caused a massive destruction of houses and 400 death tolls.arrow_forwardWhen the pandemic hit in the beginning of 2020, everything came to a halt. In a single month, 17 million Americans lost their job, and the gross domestic product (GDP), which is how economists measure the total value of a country's products and services, declined by US$2.15tn (£1.55tn). Economists were hopeful that across the world government spending and monetary policy would keep the economy from totally collapsing. During the first wave of lockdowns and stay-at-home orders since December 2019, it was clear that industries that relied on in-person customers - like travel and some retail - were going to struggle, while others would more easily adapt to the "new normal". Tech-heavy companies that delivered products or services to people's homes—like Amazon, Netflix, and Shopify—thrived. To improve the impact of the pandemic, most countries adopted an expansionary monetary policy. The change in the real interest rate influenced the goods market. Aggregate demand changed but there was no…arrow_forwardA firm's health generally depends heavily on how well the economy is ding as a whole. The success of private businesses is largely influenced by an expanding economy and favorable macro trends. Give two instances of macroeconomics trends and how they might impact hiring, sales and profits for a company.arrow_forward
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