Macroeconomics Answers

What did Tobin's add to Keynes theory of the speculative demand for money? Why was this development important

according to baumol, the transaction demand for money depends upon the rate as well as nominal income , explain why the transaction demand for money depends upon the interest rate. Why is it important

How much of a change in GDP will result if government increases its spending by $3 billion and the MPC in the economy is 0.67?

Consider the following scenario. Initially the economy has 90 million people working, 10 million people unemployed, and 20 million people not in the labor force. Then prospects for the economy improve. Five million people who previously were not in the labor force now join the 10 million previously unemployed in looking for work. For now, the economy remains with 90 million workers. What happens to the unemployment rate?

1. Pick a recent news article from a major newspaper that contains content amenable to macro-economic analysis.  

2. In the first short paragraph you might outline the main points from the article that you are planning to analyze. You should identify the key managerial issue(s) discussed in the article. Do not summarize the article.   

3. Using the tools (including graphs) and terminology learned in this course explain the