Questions from General Economics

Q: Exhibit 6 shows the monetarist monetary policy transmission mechanism. Assume the

Exhibit 6 shows the monetarist monetary policy transmission mechanism. Assume the economy is in a recession. At each arrow, identify a reason why the transmission process could fail. Details from Exh...

Q: Consider an economy in equilibrium with a recessionary gap. Draw a

Consider an economy in equilibrium with a recessionary gap. Draw a graph where the equilibrium real GDP is $8 trillion and the price level of 150. Label this equilibrium E1 where the aggregate demand,...

Q: Why does a production possibilities curve have a bowed-out shape

Why does a production possibilities curve have a bowed-out shape?

Q: Consider an economy in equilibrium with an inflationary gap. Draw a

Consider an economy in equilibrium with an inflationary gap. Draw a graph where the equilibrium real GDP is $16 trillion and the price level of 150. Label this equilibrium E1 where the aggregate deman...

Q: For each of the following situations, indicate the direction of the

For each of the following situations, indicate the direction of the shift in the supply curve or the demand curve for dollars, the factor causing the change, and the resulting movement of the equilibr...

Q: Bill can paint either two walls or one window frame in 1

Bill can paint either two walls or one window frame in 1 hour. In the same time, Frank can paint either three walls or two window frames. To minimize the time spent painting, who should specialize in...

Q: Would the U.S. government gain any advantage from using

Would the U.S. government gain any advantage from using tariffs or quotas to restrict imports?

Q: Now consider Question 5 in terms of the law’s impact on domestic

Now consider Question 5 in terms of the law’s impact on domestic producers that export goods. Does this policy adversely affect domestic producers that export goods? Details from Question 5: Suppose...

Q: Do you support a constitutional amendment to prohibit the federal government from

Do you support a constitutional amendment to prohibit the federal government from imposing any trade barriers, such as tariffs and quotas, except in case of war or national emergency? Why or why not?...

Q: Explain the advantages and disadvantages of any two of the three basic

Explain the advantages and disadvantages of any two of the three basic types of economic systems.