Questions from Macroeconomics


Q: Explain two ways in which a government budget deficit hurts a future

Explain two ways in which a government budget deficit hurts a future worker.

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Q: Give three examples of how our society discourages saving. What are

Give three examples of how our society discourages saving. What are the drawbacks of eliminating these disincentives?

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Q: From 2008 to 2012, the ratio of government debt to GDP

From 2008 to 2012, the ratio of government debt to GDP in the United States a. increased markedly. b. decreased markedly. c. was stable at a historically high level. d. was stable at a historically lo...

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Q: A company faces two kinds of risk. A firm-specific

A company faces two kinds of risk. A firm-specific risk is that a competitor might enter its market and take some of its customers. A market risk is that the economy might enter a recession, reducing...

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Q: Explain the view of those economists who are skeptical of the efficient

Explain the view of those economists who are skeptical of the efficient markets hypothesis.

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Q: Using a diagram of the labor market, show the effect of

Using a diagram of the labor market, show the effect of an increase in the minimum wage on the wage paid to workers, the number of workers supplied, the number of workers demanded, and the amount of u...

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Q: Explain four ways in which a firm might increase its profits by

Explain four ways in which a firm might increase its profits by raising the wages it pays.

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Q: List and discuss three key facts about economic fluctuations.

List and discuss three key facts about economic fluctuations.

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Q: The Fed conducts a $10 million open-market purchase of

The Fed conducts a $10 million open-market purchase of government bonds. If the required reserve ratio is 10 percent, what are the largest and smallest possible increases in the money supply that coul...

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Q: Your bank account pays an interest rate of 8 percent. You

Your bank account pays an interest rate of 8 percent. You are considering buying a share of stock in XYZ Corporation for $110. After 1, 2, and 3 years, it will pay a dividend of $5. You expect to sell...

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