Questions from Macroeconomics

Q: How do unions affect the natural rate of unemployment?

How do unions affect the natural rate of unemployment?

Q: Comparing the U.S. economy today to that of 1950

Comparing the U.S. economy today to that of 1950, one finds that today, as a percentage of GDP, a. exports and imports are both higher. b. exports and imports are both lower. c. exports are higher, an...

Q: Give four explanations for why firms might find it profitable to pay

Give four explanations for why firms might find it profitable to pay wages above the level that balances quantity of labor supplied and quantity of labor demanded?

Q: Japan generally runs a significant trade surplus. Do you think this

Japan generally runs a significant trade surplus. Do you think this is most related to high foreign demand for Japanese goods, low Japanese demand for foreign goods, a high Japanese saving rate relati...

Q: Which of the following actions by the Fed would reduce the money

Which of the following actions by the Fed would reduce the money supply? a. an open-market purchase of government bonds b. a reduction in banks’ reserve requirements c. an increase in the interest rat...

Q: You take $100 you had kept under your mattress and deposit

You take $100 you had kept under your mattress and deposit it in your bank account. If this $100 stays in the banking system as reserves and if banks hold reserves equal to 10 percent of deposits, by...

Q: If the Fed wants to increase the money supply with open-

If the Fed wants to increase the money supply with open-market operations, what does it do?

Q: According to the quantity theory of money and the Fisher effect,

According to the quantity theory of money and the Fisher effect, if the central bank increases the rate of money growth, a. inflation and the nominal interest rate both increase. b. inflation and the...

Q: Let’s consider the effects of inflation in an economy composed of only

Let’s consider the effects of inflation in an economy composed of only two people: Bob, a bean farmer, and Rita, a rice farmer. Bob and Rita both always consume equal amounts of rice and beans. In 201...

Q: According to the Fisher effect, how does an increase in the

According to the Fisher effect, how does an increase in the inflation rate affect the real interest rate and the nominal interest rate?