Questions from Macroeconomics

Q: The year 2017 closed with the unemployment rate just below 4 percent

The year 2017 closed with the unemployment rate just below 4 percent, real GDP growing at roughly 2.5 percent, inflation slightly below 2 percent, and the federal budget showing a deficit under 3 perc...

Q: You have a dozen shirts and your roommate has six pairs of

You have a dozen shirts and your roommate has six pairs of shoes worth roughly the same amount of money. You decide to swap six shirts for three pairs of shoes. In financial terms, neither of you gain...

Q: Now raise exports to $650 and find the equilibrium again.

Now raise exports to $650 and find the equilibrium again. How large is the multiplier?

Q: In the eighteenth century, some writers argued that one person in

In the eighteenth century, some writers argued that one person in a trade could be made better off only by gaining at the expense of the other. Explain the fallacy in this argument.

Q: After the removal of a quota on sugar, many U.

After the removal of a quota on sugar, many U.S. sugar farms go bankrupt. Discuss the pros and cons of removing the quota in the short and long runs.

Q: Country A has a mercantilist government that believes it is always best

Country A has a mercantilist government that believes it is always best to export more than it imports. As a consequence, it exports more to Country B every year than it imports from Country B. After...

Q: Under current trade law, the president of the United States must

Under current trade law, the president of the United States must report periodically to Congress on countries engaging in unfair trade practices that inhibit U.S. exports. How would you define an “unf...

Q: Suppose the United States finds Country X guilty of unfair trade practices

Suppose the United States finds Country X guilty of unfair trade practices and penalizes it with import quotas. So U.S. imports from Country X fall. Suppose, further, that Country X does not alter its...

Q: What items do you own or routinely consume that are produced abroad

What items do you own or routinely consume that are produced abroad? From what countries do these items come? Suppose Americans decided to buy fewer of these things. How would that affect the exchange...

Q: If the dollar appreciates relative to the euro, will the German

If the dollar appreciates relative to the euro, will the German camera you have wanted become more or less expensive? What effect do you imagine this change will have on American demand for German cam...