Macroeconomics Answers

Which factors are considered when deciding how to make goods & services?

Go to the FRED database and collect data on the three macroeconomic variables (i.e., GDP growth rate (i.e., available in quarterly frequency), Unemployment rate (i.e., available in monthly frequency but calculate the quarterly rate), and inflation rate (i.e., available in monthly frequency but calculate the quarterly rate)) for U.S. economy and
conduct the following activities:
a. Plot these series and describe them in one paragraph.
b. Okun’s Law: Run a simple regression and see if the proposition
(claim) by Okun’s Law is still valid for the period of 1990 – 2018.
c. Philips Curve: Run a simple regression and see if the
proposition (claim) by the Philips Curve is still valid for the period of 1990 –
2018.

Go to the FRED database and collect data on the three macroeconomic variables (i.e.,
GDP growth rate (i.e., available in quarterly frequency), Unemployment rate (i.e.,
available in monthly frequency but calculate the quarterly rate), and inflation rate (i.e.,
available in monthly frequency but calculate the quarterly rate)) for U.S. economy and
conduct the following activities:
a. Plot these series and describe them in one paragraph.
b. Okun’s Law: Run a simple regression and see if the proposition
(claim) by Okun’s Law is still valid for the period of 1990 – 2018.
c. Philips Curve: Run a simple regression and see if the
proposition (claim) by the Philips Curve is still valid for the period of 1990 –
2018.

Calculate the Corporate Income Tax, using the giving figures: Imports=1110.2 ; Government Purchases=1487.1; Net Private Domestic Investment=459.1; Gross Investment=1367.1, Exports=959.1 ; Net Foreign factor Income earned = 20.4 ; Indirect Business Taxes=587.8 ; Proprietor's Income =577.2 ; Dividend=307 ; Undistributed Corporate Profit=265.9; Corporate Profit=824.6; Rental Income=162.6 ; Interest=449.3; Compensation Employees=4981.1 ; Personal consumption=5807.9 ; Personal Taxes=1502 ; Transfer payment=102.5 and Social Security contribution=205. Also, given the date above, calculate the following using the Expenditure method ( GDP, NDP, NI, PI and DI) and Income method to calculate the following (GDP, NDP, and NI)

The wholesale price of large shell eggs peaked at $2.49 a dozen on May 29, up from $1.20 a dozen at the beginning of the year. (…) Avian flu, which first appeared in the United States in December, has devastated the nation’s turkey and laying hen flocks. (…) Trends like the Paleo diet, with its emphasis on protein, and the U.S.D.A.’s recent decision to remove limits on cholesterol from its Dietary Guidelines are creating a voracious appetite for eggs.

Prove diagrammatically that a price floor reduces consumers surplus ? Please !

Assume that both the supply of bottled water and the demand for bottled water rise during the summer but that supply increases more rapidly than demand. What can you conclude about the direction of impacts on equilibrium price and equilibrium quantity?

Explain how expectations about future sales will affect investments?

Find the stock of money in an economy where the velocity of money is 3, long run real output is 700,000 units and the long run price is $6.

Suppose the population over 15 is 20 million, the labour force Participation rate is 60%, and the unemployment rate is 5%. If the labour force grows by 3% and employment grows by 2%, what does the unemployment rate become?