Questions from Managerial Economics

Q: Suppose that the expectations-augmented Phillips curve is given by π

Suppose that the expectations-augmented Phillips curve is given by π = πe 0.51U - Un2. If expected inflation is 3% and the natural rate of unemployment is 5%, complete the following: a) Calculate the...

Q: During 2007, the U.S. economy was hit by

During 2007, the U.S. economy was hit by a price shock when the price of oil increased from around $60 per barrel to around $130 per barrel by June 2008. While inflation increased during the fall of 2...

Q: Suppose Okun’s law can be expressed according to the following formula:

Suppose Okun’s law can be expressed according to the following formula: U - Un = -0.75 *1Y - YP. Assuming that potential output grows at a steady rate of 2.5% and that the natural rate of unemployment...

Q: Assuming that Okun’s law is given by U - Un = -

Assuming that Okun’s law is given by U - Un = -0.75 *1Y - YP2 and that the Phillips curve is given by π = πe - 0.6 * 1U - Un2+ ρ, a) Obtain the short-run aggregate supply curve if expectations are ada...

Q: Go to the St. Louis Federal Reserve FRED database, and

Go to the St. Louis Federal Reserve FRED database, and find data on real government spending (GCEC1), real GDP (GDPC1), taxes (W006RC1Q027SBEA), and a measure of the price level, the personal consumpt...

Q: Using the expression for the short-run aggregate supply curve obtained

Using the expression for the short-run aggregate supply curve obtained in Problem 6, draw a new short-run aggregate supply curve on the same graph if there is a price shock such that ρ = 2. Calculate...

Q: Although Okun’s law holds for different countries, those with more flexible

Although Okun’s law holds for different countries, those with more flexible labor markets experience a higher response of unemployment to changes in GDP. During the recent financial crisis, real GDP d...

Q: Suppose total population is 100 million and 25% is devoted to

Suppose total population is 100 million and 25% is devoted to the production of research and development. Using the simplified version of the Romer model outlined in the chapter, calculate the followi...

Q: Go to the St. Louis Federal Reserve FRED database, and

Go to the St. Louis Federal Reserve FRED database, and find data on the three-month U.S. Treasury note (TB3MS), the three-month AA nonfinancial commercial paper rate (CPN3M), the three-month AA financ...

Q: Go to the St. Louis Federal Reserve FRED database, and

Go to the St. Louis Federal Reserve FRED database, and find data on the St. Louis Fed financial stress index (STLFSI), the percent value of loans collateralized for commercial and industrial loans (ES...