Macroeconomics Answers

What are the problems involved in using national income measurement to determine living standards of a country?

1) explain at least four of the main problems involved in using national income measurement tools to determine living standards of a country and to compare countries?
2) what other indicators could be use to assess living standards?

Explain at least 4 main problems involved in using national income measurement tools to determine living standards of a country and to compare countries.

What are the lags in the fiscal policy?

& If a new home can be constructed for $150,000, what is the opportunity cost of federal defense spending, measured in terms of private housing? (Assume a defense budget of $600 billion.)

Considering the flow of money throughout a country’s economy and the importance of the proper level of money supply, answer the following questions.

a. Discuss how money is created within the banking system
b. Discuss how in the United States, the Federal Reserve uses monetary policy to control the money supply.

Explain the relationships that exist between rates of employment and rates of inflation within your economy.

Outline the principal constraints which prevent unlimited expansion of bank credit.

What are the likely effects of a significant reduction in the rate of money supply growth on:

& & & (i) the ecomomy

& & & (ii) the real estate sector.

What is the business cycle?