Macroeconomics Answers

2. The U.S. Federal Reserve is the central bank of the United States. It has many roles in the economy, but one of the key roles is conducting monetary policy.
c. Using the monetary policy tool the Fed employs most often, the Fed closes an inflationary gap. Describe the steps the economy goes through to move to the new equilibrium output and price level. Use graphs with your answer and be sure to label everything completely.

2. The U.S. Federal Reserve is the central bank of the United States. It has many roles in the economy, but one of the key roles is conducting monetary policy.
b. Suppose the Fed wants to close an inflationary gap. How could it use each of the three tools of monetary policy to close the gap?

2. The U.S. Federal Reserve is the central bank of the United States. It has many roles in the economy, but one of the key roles is conducting monetary policy.
a. What is monetary policy?

1. Trust plays an important role in complex modern economic systems such as the U.S. economy. You will write about two examples. For each, define the term, describe the role it plays in the economy, and identify the role trust plays prompt.
b. Fractional reserve banking

1. Trust plays an important role in complex modern economic systems such as the U.S. economy. You will write about two examples. For each, define the term, describe the role it plays in the economy, and identify the role trust plays prompt.
b. Fractional reserve banking

1. Trust plays an important role in complex modern economic systems such as the U.S. economy. You will write about two examples. For each, define the term, describe the role it plays in the economy, and identify the role trust plays prompt.
a. Fiat money

Assume Japanese government wanted to keep the labor costs in the aggricultural sector low. At the same time however the government wanted to increase the wage level and improve working conditions of Japanese workers. How can Japan achieve these two seemingly contradicting aims?

Starting with 2000’s capital in the world became increasingly mobile. According to the mainstream labor market model, assuming labor costs are the only factor the capital owners take into account, which countries are the ones capital will move from, and which countries are the ones capital will move in? Explain your answer.

One of the major complaints of the British people for Brexit is, the argument that labor mobility
enforced by EU on England, cause wage level of British workers to fall. Assume this claim of British citizens is correct. Show on two seperate graphs, one representing British labor market, the other labor market of the rest of EU. And show the effect of labor mobility in both markets. Explain in a few words the reason behind this process.

How did the scale effect created by the decrease in wage level affect the labor demand?