Consider the scenario where a major technological advancement leads to the automation of many jobs in the banking sector. Discuss the implications of this shift on the finance world from Ch9's perspective. Simultaneously, delve into the potential unemployment outcomes from Ch10's teachings. How might these laid-off workers reintegrate into the workforce, and what could be the broader economic repercussions?

Consider the scenario where a major technological advancement leads to the automation of many jobs in the banking sector. Discuss the implications of this shift on the finance world from Ch9's perspective. Simultaneously, delve into the potential unemployment outcomes from Ch10's teachings. How might these laid-off workers reintegrate into the workforce, and what could be the broader economic repercussions?

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter15: Macroeconomic Policy, Economic Stability, And The Federal Debt

Section: Chapter Questions

Problem 6CQ

See similar textbooks

Similar questions

Suppose the monetary authority on Ferenginar wants to know about the relationship between money growth and inflation. You decide to use the Quantity Theory of Money in terms of percentage changes, which is given by%∆Mt + %∆Vt = πt + %∆yt (a) Suppose the income elasticity of demand for money is equal to 1, andoutput is independent of monetary policy. If %∆Mt=5%, what is inflation (πt)? (b) Suppose that the income elasticity of demand for money is 1, and output is not independent of monetary policy. If Inflation is 3%, and %∆Mtis 2%, what is output
Suppose you observe the time series of output y and real money supply M/ P reported in the Figure below. Nominal money supply M is under full control of the Central Bank. Output y Real Money Supply M³/P Time t Time t 1 3 4 1 2 3 4 6. Interpret these time series using the ASAD Redux model with workers misperceptions (Lecture Notes, Chapter 1). Assume that the time paths are caused by a single permanent shock hitting the economy at time t= 1, and interpret time t = 6 as the medium run. Your general task is to guess what type of shock can be responsible for the observed time series. Answer each of the following questions, providing clear motivation for your statements: (a) Can the shock be a permanent change, positive or negative, in public expenditures G? Motivate your answer.
What is the opportunity cost of holding money? Explain Baumol-Tobin model 20 of the demand for money. How can this model be estimated enpirically?
Provide brief intuitive answers to the following questions. 1. What are the main empirical and theoretical contributions of the Mankiw, Romer and Weil's paper? Define one of the main empirical challenges they faced in their analysis? 2. Explain what central banks can do when they encounter a liquidity trap, and cannot use conventional monetary policy. 3. Explain how the real business cycle model can explain why the price level is countercyclical at some times, and uncorrelated with output at other times.
Suppose you observe the time series of output y and real money supply M/ P reported in the Figure below. Nominal money supply M is under full control of the Central Bank. Output y Real Money Supply M$/P + + + Time t Time t 1 3 4 6. 1 3 4 6. Interpret these time series using the ASAD Redux model with workers misperceptions (Lecture Notes, Chapter 1). Assume that the time paths are caused by a single permanent shock hitting the economy at time t= 1, and interpret time t = 6 as the medium run. Your general task is to guess what type of shock can be responsible for the observed time series. Answer each of the following questions, providing clear motivation for your statements: (C) Can the shock be a permanent change, positive or negative, in firms productivity 2? Motivate your answer.
Suppose you observe the time series of output y and real money supply M/ P reported in the Figure below. Nominal money supply M is under full control of the Central Bank. Output y Real Money Supply M$1P Time t Time t 1 2 3 4 5 6. 1 3 4 Interpret these time series using the ASAD Redux model with workers misperceptions (Lecture Notes, Chapter 1). Assume that the time paths are caused by a single permanent shock hitting the economy at time t = 1, and interpret time t= 6 as the medium run. Your general task is to guess what type of shock can be responsible for the observed time series. Answer each of the following questions, providing clear motivation for your statements: (d) Can the shock be of a permanent change, positive or negative, in the slope of labour supply B? Motivate your answer. Add any further considerations that you think can be relevant to this exercise.
There are two countries in the world, A and B. Suppose the central bank in country A has an annual inflation target pai = 0.02 while the central bank in country B has anannual inflation target pai = 0.03. In the long run, we would expect the nominalexchange rate of country A to appreciate against country B at a rate of about 1% per year.True or False? Explain.
Please complete the statements using the labels provided. Suppose that the Federal Reserve Bank wants to address high levels of unemployment in the economy. To do so, it would likely seek to increase If the Federal Reserve Bank is able to instigate the growth it desires, it will likely come at the cost of increasing Suppose that the Federal Reserve Bank achieves the growth it wants, but also experiences the negative consequences. As a result, it will seek to decrease nto a | , at the risk of leading the economy Answer Bank aggregate supply recession aggregate demand deflation inflation disinflation
Use an AD-AS framework to show the effect of monetary restriction on the output level, prices and interest rate in the short run and the long run. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Questıon One Zambia has adopted an inflation targeting framework to manage its monetary policy. Using your knowledge of money and banking, elaborate on the key features of the inflation targeting framework and also bring out the positives and negative aspects of such a framework. What key gaps can you isolate that exist in the conduct of inflation targeting for Zambia? You have been appointed as Chief Executive Officer for one of the largest Banks in Zambia. As your first task, you will need to review the Bank’s credit management policies. Based on the paper by George Akerlof on the “Market for Lemons”, write an advisory note (no more than one page) on how the bank can address the challenges of information Asymmetry, Adverse Selection and the Moral Hazard problem in the context of a commercial bank. Ensure to provide practical examples in your illustration.
1. If there is no speculative element in the Money Demand Function, while the other functions remain in a normal state, then find the function of the monetary sector and what the shape of the monetary sector curve looks like. 2. In connection with the macroeconomic situation as illustrated in problem number (1) above, using a three-sector economic analysis tool (real sector, monetary sector, and resource sector), present your answer about the relevance and significance of the Social Assistance Program Covid-19. 3. Using a four-sector economic analysis tool, present your answer separately about the relevance and impact of each of the following macroeconomic policies: (a) PAKTO ‘88(Easy / Expansionary Money Policy); (b) Increased Real Sector (Expansionary Fiscal)Policy).
Name three (3) policy tools that a Central bank can use to constrain the rate of inflation and explain how one (1) of these works in accomplishing its objective.