Questions from Managerial Economics


Q: The Heritage Index, published yearly by the Heritage Foundation, provides

The Heritage Index, published yearly by the Heritage Foundation, provides a comprehensive numerical measure of overall economic freedom for countries, with specific indicators reflecting the overall q...

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Q: Describe the two primary objectives of macroeconomic stabilization policy.

Describe the two primary objectives of macroeconomic stabilization policy.

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Q: Should policy makers strive to achieve zero rates of unemployment and inflation

Should policy makers strive to achieve zero rates of unemployment and inflation? Why or why not?

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Q: Distinguish between hierarchical and dual mandates. Which best describes the policy

Distinguish between hierarchical and dual mandates. Which best describes the policy making environment in the United States?

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Q: What is the equilibrium real interest rate? How does it influence

What is the equilibrium real interest rate? How does it influence the interest rate decisions of Federal Reserve policy makers?

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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 personal disposable income (DPIC96), a measure of household net worth (TNWBSHNO), a measure of the price level, the personal co...

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Q: What specific procedures do financial intermediaries use to reduce asymmetric information problems

What specific procedures do financial intermediaries use to reduce asymmetric information problems in lending?

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Q: Why does the divine coincidence simplify the job of policy making?

Why does the divine coincidence simplify the job of policy making? In what situations will it prevail? Why?

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Q: Summarize the main points of disagreement in the debate between activists and

Summarize the main points of disagreement in the debate between activists and non activists.

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Q: Why do activists believe the economy’s self-correcting mechanism is slow

Why do activists believe the economy’s self-correcting mechanism is slow?

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