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Economics
1.) Assume that the full-employment level of output is $5000 billion and the natural unemployment rate is 6%. Suppose the current unemployment rate is 8%.
What would be the current level of output according to Okun'slaw ,when the Okun's law coefficient is 2? (Show your calculations)
2.) Draw a diagram showing the phases of the business cycle and the turning points (use the technical names). Using the diagram to illustrate the concepts of recurrence and persistence.
3.) Use an aggregate supply and aggregate demand diagram from Chapter 8 of Able and Bernanke to answer parts (a.) and (b.) below :
(a.) Answer as a Classical economist: Can an attempt by each and every person to increase their savings, result in an overall reduction in national saving?
Answer Yes or No and explain with a diagram.
(b.) Answer as a Keynesian economist: Can an attempt by each and every person to increase their savings, result in an overall reduction in national saving?
Answer Yes or No and explain with a diagram.
What would be the current level of output according to Okun'slaw ,when the Okun's law coefficient is 2? (Show your calculations)
2.) Draw a diagram showing the phases of the business cycle and the turning points (use the technical names). Using the diagram to illustrate the concepts of recurrence and persistence.
3.) Use an aggregate supply and aggregate demand diagram from Chapter 8 of Able and Bernanke to answer parts (a.) and (b.) below :
(a.) Answer as a Classical economist: Can an attempt by each and every person to increase their savings, result in an overall reduction in national saving?
Answer Yes or No and explain with a diagram.
(b.) Answer as a Keynesian economist: Can an attempt by each and every person to increase their savings, result in an overall reduction in national saving?
Answer Yes or No and explain with a diagram.
Economics
Use terms for direction and timing to characterize the movement of the nominal interest rate over the macroeconomic cycle. Detail you explanation by reference to the Keynesian transmission mechanism. Your explanation should involve two graphs: one graph for the money market (the FED & Wall-Street) and one graph for the capital goods market (Main-Street Investment). You may begin by assuming that the economy has just gone into a recession.
A manufacturer of electronics products is considering entering the telephone equipment business. It estimates that if it were to begin making wireless telephones, its short-run cost function would be as follows.
Q(thousands) AVC AC MC _____________________________________________________________________
9 41.10 52.21 30.70
10 40.00 50.00 30.10
11 39.10 48.19 30.10
12 38.40 46.73 30.70
13 37.90 45.59 31.90
14 37.60 44.74 33.70
15 37.50 44.17 36.10
16 37.60 43.85 39.10
17 37.90 43.78 42.70
18 38.40 43.96 46.90
19 39.10 44.36 51.70
20 40.00 45.00 57.10
a. Plot the average cost, average variable cost, marginal cost, and price on a graph
b. Suppose the average wholesale price of a wireless phone is currently $50. Do you think this company should enter the market? Explain. Indicate on the graph the amount of profit (or loss) earned by the firm at the optimal level of production.
c. Suppose the firm does enter the market and that over time increasing competition causes the price of telephones to
Q(thousands) AVC AC MC _____________________________________________________________________
9 41.10 52.21 30.70
10 40.00 50.00 30.10
11 39.10 48.19 30.10
12 38.40 46.73 30.70
13 37.90 45.59 31.90
14 37.60 44.74 33.70
15 37.50 44.17 36.10
16 37.60 43.85 39.10
17 37.90 43.78 42.70
18 38.40 43.96 46.90
19 39.10 44.36 51.70
20 40.00 45.00 57.10
a. Plot the average cost, average variable cost, marginal cost, and price on a graph
b. Suppose the average wholesale price of a wireless phone is currently $50. Do you think this company should enter the market? Explain. Indicate on the graph the amount of profit (or loss) earned by the firm at the optimal level of production.
c. Suppose the firm does enter the market and that over time increasing competition causes the price of telephones to
Economics
who is the ultimate investor?
a guarantor
B GNMA
c security holder
d federal government
a guarantor
B GNMA
c security holder
d federal government
Why would the supply of the pound increase if people at home are swapping their currency for other people's currency?
using a 365-day calendar year, what is the interest due at closing for $54,750 mortgage loan at 8% interest for 23 days?
other things remaining the same, what would happen to the supply of a particular commodity if the following changes occur,
a. the price of the commodity decreases.
a. the price of the commodity decreases.
Sita expects her future earning to be worth rs 100 .If she falls ill ,her expected future earning will be rs 25.There is a belief that she may fall ill with probability of 2/3 while the probability of remaining in good health is 1/3.Let her utility function be given as U(y)=y1/2 ,suppose that an insurance company offer to fully insure Sita against loss of earnings caused by illness against an actuarially fair premium.
(a)Will Sita accept the insurance?Explain
(b)What is the maximum amount that Sita would pay for insurance?
(a)Will Sita accept the insurance?Explain
(b)What is the maximum amount that Sita would pay for insurance?
sign of the implied cross-price elasticity
with drinks from McDonald’s competitors?
with drinks from McDonald’s competitors?
If the supply of corn by the Namibia is Q_n=a+bp and the supply by the rest of the world is Q_r=c+ep, what is the world supply? What is the world inverse supply?
