1.2 Which of the following conditions would not be studied by the macroeconomist? a) The level of national unemployment during 1988. b) The effect of government economic policy on the inflation rate during 1987. c) The effect of changing petroleum prices on the demand for coal. d) The effect of lower income taxes on the rate of economic growth.

1.2 Which of the following conditions would not be studied by the macroeconomist? a) The level of national unemployment during 1988. b) The effect of government economic policy on the inflation rate during 1987. c) The effect of changing petroleum prices on the demand for coal. d) The effect of lower income taxes on the rate of economic growth.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter20: Economic Growth

Section: Chapter Questions

Problem 20RQ: For a high-income economy like the United States, what aggregate production function elements are...

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1.2 Which of the following conditions would not be studied by the macroeconomist?a) The level of national unemployment during 1988.b) The effect of government economic policy on the inflation rate during 1987.c) The effect of changing petroleum prices on the demand for coal.d) The effect of lower income taxes on the rate of economic growth.
2. Suppose you are the governor of Country A and you have observed some changes in your country. Identify the likely impact on Country A with the economic concepts we have discussed in this course. i. Establishment of more labour unions in many industries in the country ii. A widespread of global pandemiciii. An abolishment of minimum wage lawiv. Much more educated workers than a decade before How would the unemployment rate be affected in each of the above cases? Identify the specific type of unemployment (frictional, structural or cyclical unemployment) affected in each case.
For a high-income economy like the United States, what aggregate production function elements are most important in bringing about growth in GDP per capita? What about a middle-income country such as Brazil? A low-income country such as Niger?
What sorts of policies can governments implement to encourage convergence?
1. Rank these three economic variables below from most important to least important. Provide one relevant reason to justify the selection for each of the three positions. Economic growth and unemployment Economic growth and inflation Unemployment and inflation (I.e. a reason why each variable is placed at position 1, 2 and 3 Rank Variable Justification 1 2 3
D) All óf the above. 2. The idea that the business cycle is recurrent means that the standard pattern of contraction-trough-expansion-peak occurs again and again in industrial economies. Co-movement is A) the idea that the standard pattern of contraction-trough-expansion-peak occurs again and again in industrial economies. B) the tendency of many economic variables to move together in a predictable way over the business cycle. C) the idea that peaks and troughs of the business cycle occur at regular intervals. D) the tendency for declines in economic activity to be followed by further declines, and for growth in economic activity to be followed by more growth. 3. Which of the following macroeconomic variables is the most seasonally procyclical? A) Expenditure on services. C) Expenditure on durable goods. B) The unemployment rate. D) The real wage. 4. The difference between market demand and aggregate demand is that: A) Market demand applies to all individuals, and aggregate demand does…
42) The GDP of the country has been dropping consistently for last few quarters due to economic policy uncertainties. What kind of economic factor would affect the economy? a. Domestic Factor b. Micro Economic Factor c. None d. Macro-Economic factor
a)Interpret the data from the table and distinguish the relationship between the two countries. identify a public policy that can improve employment. State an example Unemployment Rate Year Country C Country D 2016 6.0 19.9 2017 5.8 19.1 2018 5.1 19.3 2019 5.0 15.6 2020 5.7 17.1 B)Interpret the data from the table and distinguish the relationship between the two countries. identify a public policy that can improve economic growth. State two examples Economic Growth rate Year Country A Country B 2016 4.0 3.2 2017 3.5 2.8 2018 2.6 2.0 2019 1.7 2.1 2020 -20.2 -2.1
1.Which of the components of GDP must increase if we are to experience greater rates of economic growth? 2.Explain the difference between cost-push inflation and demand-pull inflation.
1. The maximum amount of production that can be produced while avoiding shortages of labor, capital, land, and entrepreneurship that would bring rising inflation is called A) real GDP. B) nominal GDP. C) actual GDP. D) potential GDP. 2. Potential GDP is A) the maximum GDP that an economy actually achieves throughout its entire history. B) the level of GDP achieved during periods when 100 percent of the labor force is employed. C) a goal that can never be achieved by the economy. D) the maximum amount of GDP that can be produced while avoiding shortages of labor, capital, land, and entrepreneurship that would bring rising inflation. 3. The relationship between real GDP and potential GDP is that A) real GDP always equals potential GDP. B) real GDP never equals potential GDP. C) real GDP fluctuates about potential GDP. D) real GDP is always below potential GDP. 4. The income approach to measuring GDP sums together A) compensation of employees, rental income, corporate profits, net…
19. Which of the following policies does NOT increase structural unemployment? (A) Shutting down job-matching centres. (B) Vaccine mandates at workplaces. (C) Replacing human professors with online AI teachers. (D) Minimum wages.
a) Prepare a table and line graph showing the unemployment and economic growth rate for a Caribbean country and a developed country (other than the US) for the last 5 years. Examine the relationship observed between the two countries. b) Identify THREE public policies that can stimulate employment and facilitate economic growth in an economy. Use examples to clearly illustrate how EACH policy can stimulate employment and facilitate economic growth in your country.