Questions from Macroeconomics

Q: When prices started doubling (see News, p. 329),

When prices started doubling (see News, p. 329), why didn’t the Continental Congress print even more money so Washington’s army could continue to buy supplies? What brings an end to such “inflation f...

Q: Could long-term interest rates rise when short-term rates

Could long-term interest rates rise when short-term rates are falling? What would cause such a pattern?

Q: Why did the stock market “surge” when the Fed announced

Why did the stock market “surge” when the Fed announced it intended to buy $1.2 trillion of bonds ?

Q: How many people are employed by your local or state government?

How many people are employed by your local or state government? What do they produce? What is the opportunity cost of that output?

Q: If mortgage rates fell to 0 percent (“free money”), why

If mortgage rates fell to 0 percent (“free money”), why might consumers still hesitate to borrow money to buy a home?

Q: Why might prices rise when aggregate demand increases? What factors might

Why might prices rise when aggregate demand increases? What factors might influence the extent of price inflation?

Q: How did the 2011 tsunami affect Japan’s potential output ?

How did the 2011 tsunami affect Japan’s potential output ?

Q: Which of the following groups are likely to have the highest tax

Which of the following groups are likely to have the highest tax elasticity of labor supply: (a) college students, (b) single parents, (c) primary earners in two-parent families, and (d) secondary...

Q: How is the aggregate supply curve affected by (a)

How is the aggregate supply curve affected by (a) minimum wage laws and (b) Social Security payroll taxes and retirement benefits?

Q: OSHA predicted that its proposed ergonomics rules (text, p.

OSHA predicted that its proposed ergonomics rules (text, p. 356) would have cut repetitive stress injuries by 50 percent. Was Congress correct in repealing those rules?