Questions from Managerial Economics

Q: According to aggregate demand and supply analysis, what would be the

According to aggregate demand and supply analysis, what would be the effect of appointing a Federal Reserve System chairman known to have no interest in fighting inflation?

Q: An article in the Wall Street Journal reported that inflation-adjusted

An article in the Wall Street Journal reported that inflation-adjusted wages have slumped in recent years. Is this statement consistent with the aggregate demand and supply analysis of the recent U.S....

Q: The consequences of climate change on the economy is a popular topic

The consequences of climate change on the economy is a popular topic in the media. Suppose that a series of wildfires destroys crops in the western states at the same time a hurricane destroys refiner...

Q: Suppose that the President gets legislation passed that encourages investment in research

Suppose that the President gets legislation passed that encourages investment in research and development of new technologies. Assuming this policy results in positive technological change for the U.S...

Q: According to the Reserve Bank of New Zealand Act of 1989 (

According to the Reserve Bank of New Zealand Act of 1989 (section 8): “The primary function of the Bank is to formulate and implement monetary policy directed to the economic objective of achieving an...

Q: In 2003, as the economy finally seemed poised to exit its

In 2003, as the economy finally seemed poised to exit its ongoing recession, the Fed began worrying about a “soft patch” in the economy; in particular, it worried about the possibility of deflation. A...

Q: Suppose that f is determined by two factors: financial panic and

Suppose that f is determined by two factors: financial panic and asset purchases. a) Using an MP curve and an AS>AD graph, show how a sufficiently large financial panic can pull the economy below the...

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 and reflects the strength or weakness of instituti...

Q: Suppose the current administration decides to decrease government expenditures as a means

Suppose the current administration decides to decrease government expenditures as a means of cutting the existing government budget deficit. a) According to the aggregate demand and supply analysis, w...

Q: The recent debate about healthcare reform in the United States included arguments

The recent debate about healthcare reform in the United States included arguments about how the proposed reform might affect the efficiency of the U.S. economy. Based on the aggregate demand and suppl...