Questions from Macroeconomics


Q: What does the assumption of constant velocity imply?

What does the assumption of constant velocity imply?

See Answer

Q: On September 21, 1995, “House Speaker Newt Gingrich threatened

On September 21, 1995, “House Speaker Newt Gingrich threatened to send the United States into default on its debt for the first time in the nation’s history, to force the Clinton Administration to bal...

See Answer

Q: Consider an economy described by the following equations: Y=

Consider an economy described by the following equations: Y= C + I + G + NX, Y = 8,000, G = 2,500, T = 2,000, C = 500 + 2/3 (Y - T), I = 900 - 50r, NX = 1,500 - 250e, R= r* = 8. a. In this economy, so...

See Answer

Q: Define the nominal exchange rate and the real exchange rate.

Define the nominal exchange rate and the real exchange rate.

See Answer

Q: The residents of a certain dormitory have collected the following data:

The residents of a certain dormitory have collected the following data: people who live in the dorm can be classified as either involved in a relationship or uninvolved. Among involved people, 10 perc...

See Answer

Q: What are the three functions of money? Which of the functions

What are the three functions of money? Which of the functions do the following items satisfy? Which do they not satisfy? a. A credit card b. A painting by Rembrandt c. A subway token

See Answer

Q: Describe the difference between frictional unemployment and structural unemployment.

Describe the difference between frictional unemployment and structural unemployment.

See Answer

Q: In the discussion of German and Japanese postwar growth, the text

In the discussion of German and Japanese postwar growth, the text describes what happens when part of the capital stock is destroyed in a war. By contrast, suppose that a war does not directly affect...

See Answer

Q: Why might an economic policymaker choose the Golden Rule level of capital

Why might an economic policymaker choose the Golden Rule level of capital?

See Answer

Q: Labor productivity is defined as Y/L, the amount of

Labor productivity is defined as Y/L, the amount of output divided by the amount of labor input. Start with the growth-accounting equation and show that the growth in labor productivity depends on gro...

See Answer