ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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- The classical dichotomy is the separation of real and nominal variables. The following questions test your understanding of this distinction. Kyoko spends all of her money on comic books and beignets. In 2012 she earned $27.00 per hour, the price of a comic book was $9.00, and the price of a beignet was $3.00. NOTE: Here are the drop down question choices In 2017, the relative price of a comic book is ______ (0.33 beignets OR 3 beignets OR $6.00 OR $18.00) Between 2012 and 2017, the nominal value of Kyoko's wage _______ (decreases OR increases OR remains the same) and the real value of her wage _______ (decreases OR increases OR remains the same) Monetary neutrality is the proposition that a change in the money supply ________ (does not affect OR affects) nominal variables and _______ (affects OR does not affect) real variables.arrow_forwardAssuming the economy is currently in an expansion, which phase will follow? Then place the remaining phases of the business cycle in order = Peak = Expansion = Contraction = Trougharrow_forwardEllen is downloading labor market data for the most recent month, but her connection is slow. So far this is all she has been able to collect: Unemployment rate 6% Participation rate 62.5% Not in the labor force 63.5 million Find the labor force, the working-age population, the number of employed workers, and the number of unemployed workers.Instructions: Enter your responses rounded to one decimal place.Labor force: millionWorking-age population: millionNumber of employed workers: millionNumber of unemployed workers: millionarrow_forward
- I need the answer as soon as possiblearrow_forwardMake an inflation rate forecasts graph based on the description. I need help please. Based on our analysis of the last ten years of inflation data, we project that inflation rates in the Philippines under the Marcos administration will remain relatively stable over the next five years. From 2011 to 2020, inflation rates in the country ranged from 1.2% to 6.7%, with an average of 3.4%. For the next five years, we expect inflation rates to remain within the range of 2.5% to 4.5%, with an average of 3.5%.arrow_forwardA country with a population of eight million adults has five million employed, 500,000 unemployed, and the rest of the adult population is out of the labor force. What’s the unemployment rate? What share of the population is in the labor force? Sketch a pie chart that divides the adult population into these three groups.arrow_forward
- Is it possible for there to be inflation present in the economy and still witness a decline in a large number of goods? If so, how and why is this possible?arrow_forwardThinking about the Economic impact of unemployment and inflation, why should we expect an inverse relationship (where one goes up and the other goes down) between these statistics?arrow_forwardThe real interest rate in Africa is 1.1%. In 2019, the inflation rate was 1.6%. The expected inflation rate in 2021 is 1.4%. Calculate by how many percentage points we expect the nominal interest rate to change between 2019 and 2021.arrow_forward
- What are some ways that real values and nominal values differ in measuring the macroeconomy?arrow_forwardWhy is it difficult to accurately measure the unemployment rate in the U.S.? Do you think the current unemployment rate is overstated, understated, or exactly right?arrow_forwardwhat does this famous quote from Hayek mean, "I do not think it is an exaggeration to say history is largely a history of inflation, usually inflations engineered by governments for the gain of governments."arrow_forward
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