Search & Filtering
With its tradition of a job for life for most citizens, Japan once had a much lower
unemployment rate than that of the United States; from 1960 to 1995, the unemployment
rate in Japan exceeded 3% only once. However, since the crash of its stock market in
1989 and slow economic growth in the 1990s, the job-for-life system has broken down
and unemployment has risen to more than 5% in 2003. Explain the likely effect of these
changes in Japan on the Japanese natural rate of unemployment.
b). Assume all wage contracts are indexed to inflation in Pakistan where each month
wages are adjusted to reveal increases in the cost of living as reflected in changes in the
price level. In India wages are not adjusted to cost-of-living, but the labor unions are very
powerful and negotiate yearly contracts. Explain whether an expansionary monetary
policy is expected to have a larger outcome on aggregate output in Pakistan or in India?
Develop a qualitative analysis on income, interest rate, trade balance and private consumption using the IS-LM-BP model if the Fiji dollar was devalued. Assume perfect capital mobility. Carefully discuss the adjustment processes
In 2016, Iceland a Nordic island country has a current account deficit of $1 billion and a
non-reserve financial account surplus of $750 million. The capital account is in a $100
million surplus. Additionally, Iceland’s factories located in foreign countries earn $700
million. Iceland has a trade deficit of $800 million. Assume Iceland neither gives nor
receives unilateral transfers. Iceland’s GDP is $9 billion.
i. What happened to Iceland’s net foreign assets during 2015? Did it acquire or lose
foreign assets during the year?
ii. Estimate the official settlements balance. What happened to the foreign reserves of the
central bank of Iceland?
iii. Calculate NFIA.
iv. Show that BOP = 0
v. What is gross national expenditure (GNE), gross national income (GNI), and gross
national disposable income (GNDI) of Iceland?
What is the difference between the GDP deflator and the CPI?
what is the term of; businesses do not maximize output from the given inputs
A term for when businesses produce goods and services that consumers don't want
Illustrate the usefulness of Phillips Curve in Macroeconomic management
The study of groups and broad aggregates of the economy is known as *
International Economics
Microeconomics
Macroeconomics
Political Economics
what is inflation rate
how can an oligopoly cause market failure
