Questions from Macroeconomics


Q: Why are the benefits of reducing inflation permanent and the costs temporary

Why are the benefits of reducing inflation permanent and the costs temporary? Why are the costs of increasing inflation permanent and the benefits temporary? Use Phillips-curve diagrams in your answer...

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Q: Why are some economists against a target of zero inflation?

Why are some economists against a target of zero inflation?

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Q: Explain how reducing a government budget deficit makes future generations better off

Explain how reducing a government budget deficit makes future generations better off. What fiscal policy might improve the lives of future generations better off. What fiscal policy might improve the...

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Q: If the business community becomes more optimistic about the profitability of capital

If the business community becomes more optimistic about the profitability of capital, the ________ curve for loan able funds would shift, driving the equilibrium interest rate ________. a. supply, up...

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Q: A closed economy has income of $1,000, government

A closed economy has income of $1,000, government spending of $200, taxes of $150, and investment of $250. What is private saving? a. $100 b. $200 c. $300 d. $400

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Q: Suppose that Intel is considering building a new chip- making factory

Suppose that Intel is considering building a new chip- making factory. a. Assuming that Intel needs to borrow money in the bond market, why would an increase in interest rates affect Intel’s decision...

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Q: What is a government budget deficit? How does it affect interest

What is a government budget deficit? How does it affect interest rates, investment, and economic growth?

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Q: According to the efficient markets hypothesis, a. changes in

According to the efficient markets hypothesis, a. changes in stock prices are impossible to predict from public information. b. excessive diversification can reduce an investor’s expected portfolio r...

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Q: Which kind of stock would you expect to pay the higher average

Which kind of stock would you expect to pay the higher average return: stock in an industry that is very sensitive to economic conditions (such as an automaker) or stock in an industry that is relativ...

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Q: What are the three categories into which the Bureau of Labor Statistics

What are the three categories into which the Bureau of Labor Statistics divides everyone? How does the BLS compute the labor force, the unemployment rate, and the labor-force participation rate?

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