How do the concepts of unemployment and inflation relate to economic growth? Which problem do you believe is more serious: unemployment or inflation? Explain your answer. Explain how to control stagflation when unemployment and inflation are very high and economic growth is very low. A. Explain t...
If the Fed takes actions that will change interest rates, how is this likely to affect inflation? Explain how inflation affects savings and investment. Explain the process of how the Federal Reserve changes interest rates and how those changes encourage an app...
Give one example of factors that could increase the demand for money and explain how that factors increases the demand for money, showing how that increase affects the asset market and the short term equilibrium rate of interest and output. Graph: Interest Rate versus Quantity of ...
Define GDP per capita, adjust inflation and the growth rate of GDP. How does Consumption affect GDP? Can GDP actual rise while domestic consumption decreases? How? How does Long Run Aggregate Supply relate to GDP? Why is Short Run Aggregate Supply Import...
overtime. These principles include future value ofmoney‚ present value ofmoney‚ simple interest and compound interest. In addition‚ other concepts that relate to factors that can impede the growth in value ofmoneyovertimeare explained‚ including risk‚ inflation and accessibility of assets...
In the Keynesian world, the interest rate path that is communicated affects the output gap (RGDP against trend RGDP), which then affects inflation (PGDP). In other words, your instrument (interest rate target) comes ahead of your goals because it is your primary way of…wait for it…”com...
If you were a macroeconomic policymaker, how do you balance the short-run tradeoff between inflation rate and unemployment rate? Explain. Explain in a simple way what Keynesian economics is and how it works. Explain why, according to Solow model, an increase in the savings rate le...
Explain what each theory said about the relationship between savings and the relevant type of investment. Compare and contrast the way Classical and Keynesian theory determine the Demand of Money and how it is related to the Money Supply. As a part of your comparison, indicat...
Explain theoretically in financial context what inflation bias is. Determine two solutions for inflation bias. How do inflation and taxes affect earnings on savings? Explain your answer. What advantages do convertible securities offer investors? What are the risks associated with...
Explain the concept of competitive markets and how it affects the economy. Explain what is meant by the term "Market Economy" in Economics. What is the marginal principle? How can you apply it as a consumer? (a) What is the marginal principle? (b) How can you apply ...