Questions from Managerial Economics


Q: Is stabilization policy more likely to be conducted with monetary policy or

Is stabilization policy more likely to be conducted with monetary policy or fiscal policy? Why?

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Q: In the Solow growth model, which variables are exogenous and which

In the Solow growth model, which variables are exogenous and which are endogenous?

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Q: How does an increase in financial frictions affect planned investment spending?

How does an increase in financial frictions affect planned investment spending?

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Q: Suppose the economy of India can be represented by the following production

Suppose the economy of India can be represented by the following production function: Y = AK1>3L2>3. Assume that during 2014, India’s technological growth (Solow residual) is 4%, and the growth rates...

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Q: Suppose that in a given economy all goods and services produced are

Suppose that in a given economy all goods and services produced are sold in perfectly competitive markets. Would you represent this economy using the classical or Keynesian approach? Explain why.

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Q: The Federal Reserve has promised that at some future date, it

The Federal Reserve has promised that at some future date, it will raise interest rates as part of its “exit strategy” from the expansionary monetary policy it pursued in the aftermath of the global...

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Q: Identify three factors that might cause the exchange rate for a currency

Identify three factors that might cause the exchange rate for a currency to rise.

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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 the University of Michigan’s consumer sentiment index (UMCSENT) and real personal consumption expenditures (PCECC96). Convert the co...

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Q: What is cyclical unemployment?

What is cyclical unemployment?

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Q: What has been the general experience of countries that have adopted inflation

What has been the general experience of countries that have adopted inflation targeting?

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