The following are examples of macroeconomic questions that remain debated among economists and policy-makers: 1. Does economic growth create inequality in income and wealth? 2. Do lower wages reduce unemployment? 3. Is there a trade-off between unemployment and inflation? 4. Is a large government debt a problem? 5. Should central banks target inflation in asset prices or only in consumer prices? Choose any two of the above questions and in each case briefly outline the economic reasoning behind different viewpoints.
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The following are examples of
1. Does
2. Do lower wages reduce
3. Is there a trade-off between unemployment and inflation?
4. Is a large government debt a problem?
5. Should central banks target inflation in asset prices or only in consumer prices?
Choose any two of the above questions and in each case briefly outline the economic reasoning behind different viewpoints.
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Solved in 3 steps
- Explain whether each of the following is an example of a macroeconomic concern or a microeconomic concern. 1. Ford Motor Company is contemplating increasing the production of full-size SUVS based on projected future consumer demand 2. Congress is debating the option of implementing a value added tax as a means to cut the federal deficit. 3. The Federal Reserve announces it is increasing the discount rate in an attempt to slow the rate of inflation. 4. The Bureau of Labor Statistics projects a 22.5 percent increase in the number or workers in the healthcare industry from 2008 to 2018.Use the conversation part to answer (B) part. ALEX: Hi, Becky. I’m intrigued to see how macroeconomics allows us to explain recent economic events such as the Great Recession that affected so many people. But there’s one thing I don’t understand. Was the collapse of the housing bubble the only cause of the recession, or were there other factors as well? BECKY: Hi, Alex. I agree that macroeconomic theory offers an entirely new perspective on how the economy works. To answer your question, the crash of the housing market was a major factor but not the only cause of the Great Recession. The professor mentioned that the __________ (options: financial, fiscal, government) system deteriorated as well, an event that deepened the economic downturn even further. ALEX: I see. So the bursting of the housing bubble caused the initial decline in aggregate demand. Then the financial crisis caused aggregate demand to decline even more. Could you also help me understand how to use the aggregate demand…Fill in the blank. ALEX: Hi, Becky. I’m intrigued to see how macroeconomics allows us to explain recent economic events such as the Great Recession that affected so many people. But there’s one thing I don’t understand. Was the collapse of the housing bubble the only cause of the recession, or were there other factors as well? BECKY: Hi, Alex. I agree that macroeconomic theory offers an entirely new perspective on how the economy works. To answer your question, the crash of the housing market was a major factor but not the only cause of the Great Recession. The professor mentioned that the __________ (options: financial, fiscal, government) system deteriorated as well, an event that deepened the economic downturn even further. ALEX: I see. So the bursting of the housing bubble caused the initial decline in aggregate demand. Then the financial crisis caused aggregate demand to decline even more. Could you also help me understand how to use the aggregate demand and aggregate supply model…
- Assume the following macroeconomic conditions in the United States and that US policy makers desire to achieve their three macro-policy goals defined in the usual way. A. Output has fallen below potential output, creating a large negative output gap. B. The employment rate has fallen, creating an unemployment rate of 8%. C. The inflation rate has risen to 10% per year. Which statement is CORRECT? Output is too low; the employment rate is too high; and the inflation rate is too high. Output is too high; the employment rate is too low; and the inflation rate is too low. Output is too high; the unemployment rate is too high; and inflation rate is too high. Output is too low; the unemployment rate is too low; and the inflation rate is too high. Output is too low; the unemployment rate is too high; and the inflation rate is too high.Assume the following macroeconomic conditions in the United States and that US policy makers desire to achieve their three macro-policy goals defined in the usual way. A. Output has fallen below potential output, creating a large negative output gap. B. The employment rate has fallen, creating an unemployment rate of 10%. C. The inflation rate has fallen to 1% per year. Which statement is CORRECT? Output is too high; the unemployment rate is too low; and inflation rate is too high. Output is too low; the unemployment rate is too high; and the inflation rate is too low. Output is too high; the employment rate is too high; and the inflation rate is too high. Output is too high; the employment rate is too low; and the inflation rate is too low. Output is too low; the unemployment rate is too high; and the inflation rate is too high. A Moving to the next question prevents changes to this answer. 19 átv Nc for Question 7 of 14 PHey, I need help with a macroeconomics problem. Thank you in advance! The questions are based on a Feb 1, 2023 statement by the Federal Reserve (attatched below) Effects mentioned in question: - Inflation is expected to increase - The Committee's choice to raise the target range for the federal funds rate and potentially keep on expanding it in the future recommends that they might be taking a more restrictive stance on monetary policy. How do the effects you you previously found align with what the Fed was hoping to attain?
- Before the COVID-19 pandemic, we had both very low unemployment and inflation. Then unemployment rose. In the future, unemployment and inflation could change and it’s good to have policy plans in place before either of these problems gets too bad. Imagine that you oversee macroeconomic policy. Start your discussion by responding to these questions and explaining your answers: What are some of the problems, difficulties, or hardships caused by unemployment? What are some of the problems, difficulties, or hardships caused by inflation? If you had to make a choice today between a policy that would head off increases in inflation or increases in unemployment, which one would you choose? Be sure to respond to at least one of your classmates' posts and share your opinion about their decision.What causes the rate of inflation in macroeconomics?Introduction to Macroeconomics: End of Chapter Problem 18. According to By the Numbers, the personal savings rate trended upward during the last five economic recessions. Personal savings might increase during a recession because of high unemployment and income anxiety. an increase in interest rates. an increase in the prices of the products. an increase in per capita income. Anna Graham is the new Treasury Secretary, and she is trying to interpret some inflation measures. In year one, the aggregate price level increased by 7% and in year two, the aggregate price level decreased by 1%. Which statement accurately characterizes the changes in the nation's price level? O In year one, the economy is experiencing inflation. In year two, the economy is also experiencing inflation. O In year one, the economy is experiencing inflation. In year two, the economy is experiencing deflation. In year one, the economy is experiencing deflation. In year two, the economy is experiencing disinflation.…
- Suppose an economy has a high rate of unemployment and a high rate of inflation. What kind of policy measures would you suggest to fight inflation and increase employment?The purpose is to know if you can define each concept through a clear and precise explanation. Imagine that you are going to explain each term to someone who does not know anything about macroeconomics; With this in mind, the explanation should be as clear and simple as possible (not brief). Write a minimum of three sentences per term.1. investment demand2. surplus3. savings offerPrinciples of Macroeconomics: ECO252 Recalling Classical, Keynesian, and now Supply-side economics. How would you describe each school? Keeping in mind each school's belief in the role of government in the economy and how economies adjust back to their ideal output yields full employment.