Questions from Macroeconomics

Q: List three macroeconomic issues that have been in the news lately.

List three macroeconomic issues that have been in the news lately.

Q: Why do economists build models?

Why do economists build models?

Q: A farmer grows a bushel of wheat and sells it to a

A farmer grows a bushel of wheat and sells it to a miller for $1. The miller turns the wheat into flour and then sells the flour to a baker for $3. The baker uses the flour to make bread and sells the...

Q: What are the four components of GDP? Give an example of

What are the four components of GDP? Give an example of each.

Q: : What determines the amount of output an economy produces?

What determines the amount of output an economy produces?

Q: Suppose the production function in medieval Europe is Y 5 K 0

Suppose the production function in medieval Europe is Y 5 K 0.5L0.5, where K is the amount of land and L is the amount of labor. The economy begins with 100 units of land and 100 units of labor. Use a...

Q: Explain how a competitive, profit-maximizing firm decides how much

Explain how a competitive, profit-maximizing firm decides how much of each factor of production to demand.

Q: Explain how each of the following events affects the monetary base,

Explain how each of the following events affects the monetary base, the money multiplier, and the money supply. a. The Federal Reserve buys bonds in an open market operation. b. The Fed increases the...

Q: What is fiat money? What is commodity money?

What is fiat money? What is commodity money?

Q: Suppose a country has a money demand function (M/P

Suppose a country has a money demand function (M/P)d 5 kY, where k is a constant parameter. The money supply grows by 12 percent per year, and real income grows by 4 percent per year. a. What is the a...