What are natural unemployment, full employment, and potential GDP? How are they related? Suppose frictional unemployment is typically UF = 2.8% and structural unemployment is typically US = 2.0%, then what is the "natural" rate of unemployment, UN? A) 5.8% B) none of the other options. ...
Market-based economies, also called free market economies, are self-regulated, allowing goods to be produced and distributed in response to demand from consumers. Command-based economies are regulated by a government body that determines the goods that are produced, their quantities, and their prices...
Demand for labor is decreasing for any given real wage. a. Explain two reasons why an economy might see a decrease in the demand for labor. b. Using the relevant graphs, show and explain the effect on wage, employment, unemployment, and potential GDP. c. ...
This study examines the determinants of economic size of a nation measured as its share in world GDP, in comparison with the conventional determinants of per capita income growth. These two indicators are complementary. The former represents the economic size (power) of a nation, whereas the ...
According tomacroeconomictheory, the goods market determines the real GDP, shown in the following relationship. To calculate real GDP, first compute thenominal GDP: Y=C+I+G+NXwhere:Y=Nominal GDPC=Consumption expenditureI=InvestmentG=Government expenditureNX=Net exportsY=C+I+G+NXwhere:Y=Nomin...
and so on. Part of your motivation to study comes from the idea that the more time you spend studying, the better the grade you'll be able to receive. The number of hours you spend studying compared to the grade you receive determines the value of studying, or what's known as your ...
GDP and GNP are both crucial metrics for assessing a country’s economic output. GDP determines national economic growth. GNP is used t understand how the country’s residents are performing financially domestically and internationally. Both are important factors in economic forecasting and stabilizing ...
Financial economists have many theories of what determines investors’ asset demand, which, in conjunction with asset supply, determines asset prices. Testing these theories has proven challenging. It is seldom possible to run experiments that randomly vary the strength of theorized motives and beliefs...
In a command economy, the government controls the economy through various commands, laws, and national goals which are used to coordinate complex social and economic systems. In other words, a social or political hierarchy determines what is produced, how it is produced, and how it is distribute...
The magnitude of h determines which observation we are looking at: if the chosen value of h is too small, the kernel assigns non-negligible weight only to the observation very close to x0, with the result that the density function is insufficiently smoothed and uninformative. However, if the...