Q: Using the expression for the short-run aggregate supply curve obtained
Using the expression for the short-run aggregate supply curve obtained in Problem 6, draw a new short-run aggregate supply curve on the same graph if there is a price shock such that ρ = 2. Calculate...
See AnswerQ: Although Okun’s law holds for different countries, those with more flexible
Although Okun’s law holds for different countries, those with more flexible labor markets experience a higher response of unemployment to changes in GDP. During the recent financial crisis, real GDP d...
See AnswerQ: Internet sites that allow people to post their resumes online reduce the
Internet sites that allow people to post their resumes online reduce the costs of job searches and create opportunities for individuals looking for jobs to be matched with potential employers more qui...
See AnswerQ: What would happen to revenue from seignorage if the inflation rate was
What would happen to revenue from seignorage if the inflation rate was very high? Hint: check Equation 8 and assume a quickly rising price level.
See AnswerQ: Consider the effect of a tax cut (if government spending remains
Consider the effect of a tax cut (if government spending remains the same) in a country with an underdeveloped financial system. a) Assuming individuals are forward- looking (i.e., the Ricardian equiv...
See AnswerQ: Go to the St. Louis Federal Reserve FRED database, and
Go to the St. Louis Federal Reserve FRED database, and find data on real GDP (GDPC1), the labor force (CLF16OV), and a measure of the capital stock, real consumption of fixed capital (A262RX1Q020SBEA)...
See AnswerQ: Assume that Social Security tax rates remain constant but the number of
Assume that Social Security tax rates remain constant but the number of employed people in the United States declines over time. a) Explain the effect of such a scenario on the size of contributions f...
See AnswerQ: The definition of the government deficit is a matter of debate.
The definition of the government deficit is a matter of debate. What would be the effect on the measurement of the government deficit if one considered Social Security taxes a “forced loan to the gove...
See AnswerQ: In recent years, the United States has experienced a sharp increase
In recent years, the United States has experienced a sharp increase in obesity rates (in particular amongst teenagers), which is considered to increase the probability of chronic diseases like diabete...
See AnswerQ: As announced by the Obama administration, part of the 2009 fiscal
As announced by the Obama administration, part of the 2009 fiscal stimulus package was directed to making broadband Internet access available to most Americans. a) Should this plan be considered gover...
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