Problem 10-01 How much more (or less) output will the average American have next year if the $22 trillion U.S. economy (GDP) grows (or contracts) by Instructions: Round your responses to the nearest dollar. If the economy is contracting be sure to use a negative sign (-) in front of your answer. assuming a population of 340 million. a. 1 percent? b. 3 percent? per person c.-1 percent? per person per person

5:06 A & & & O M P Page 2 of 5 QUESTION 2 The table below contains data on international transactions for the country of Econia. All figures are in thousands of Econia Dollars (E$), and you may assume that there is no statistical discrepancy generated by the collection of the data on the various kinds of transactions. Complete the table by filling in the light-blue shaded cells. Payments from the rest of the world All figures in thousands of E$ Payments from Econia to the rest of the world Net Payments to Econia to Econia Sales and purchases of goods & services Factor payments 5,250 2,500 1,500 1,000 Transfers 750 1,250 -500 Sales & purchases of assets 10,000 Total Current Account 10,250 Total Financial Account Page 3 of 5 QUESTION A3

The following information is given for an economy:   Labor Force of an Economy                                                                                                 Number of People (millions) Total population                                                                                      46.5 Children under the age of 16                                                                    8.5 Retirees                                                                                                    7.8 Employed                                                                                                23.9 Unemployed                                                                                              2.5 Not actively seeking employment                                                             3.0 Homemakers                                                                                            0.8   Instructions: Round your answers to one decimal place.…

Please answer Q6

4. Consider the macroeconomic balance sheets of the following economies. As a policy analyst what would be your monetary and fiscal policy advice in both cases? Explain your answer. Country A Country B GDP Growth Rate: 7% GDP Growth Rate: 0.5% Inflation: 9% Inflation: 2.1% VIX Index (Equity Market Volatility Index): 99 VIX Index (Equity Market Volatility Index): 63 Unemployment: 5% Unemployment: 7% Exchange Rate Volatility: High Exchange Rate Volatility: Low Budget Deficit and Government Borrowing as a share of GDP: High Budget Deficit and Government Borrowing as a share of GDP: High Oil Exporter: Yes Oil Exporter: No

The economy of a hypothetical country has been stable for two or three years with very low unemployment. Wages have been gradually increasing during this time. Now an aggressive policy of increasing tariffs on foreign goods imported into the country results retaliatory actions from the other countries against the country’s products and services. This causes great loss of business in the country and results in significant portion of workers losing their jobs. 1. What kind of economic gap will start to occur (inflationary or recessionary)? 2. What part of the Federal Reserve’s congressional mandate does this scenario trigger (price stability and maximum sustainable employment)? 3. What kind of monetary policy might be helpful to stabilize the economy (expansionary or contractionary)? 4. What specific monetary policy tools does the Federal Reserve have available to use in this scenario? 5. Explain in detail, how should the Federal Reserve use each of these tools to maximize their effect…

LAS 130 SAS 120 110 B. 100 90 AD1 ADo 14 15 16 17 18 19 Real GDP (trillions of 2009 dollars) 19) In the above figure, if the economy initially is at point A and government expenditure increases, in the short run the economy will move to point A) B. C) A, that is, the equilibrium will not change. B) C. D) None of the above answers is correct. lnim that protectionism saves domestic jobs? Price level (GDP deflator, 2009-100

The tab;e below shows data for five economies of similar size. Real GDP is measured in billions of dollars. Assume that potential output for each economy is $340 billion. Economy A Economy B Economy C Economy D Economy E Real GDP 300 320 340 360 Rate of Wage Change -1.0% |-0.5% 0% 3.5% 6.0% 380 How is the adjustment asymmetry demonstrated when comparing Economy A to Economy E? A. The output gap is much larger in Economy E, so wages are changing at a faster rate. B. The size of the output gap is the same in Economies A and E, but wages are rising in A and falling in E. C. The size of the output gap is the same in Economies A and E but wages are falling more slowly in A than they are rising in E. D. The output gap is larger in Economy A, yet wages are changing more slowly. E. There is insufficient data with which to observe the adjustment asymmetry.

--What role do measures like GDP, unemployment and inflation play in different scenarios?

(2) Being another key indicator, employment reflects the current status of an economy. Empirical evidence shows a higher growth rate of national output (GDP) usually goes hand-in-hand with a lower unemployment rate. In a study to the economic impact of the Covid-19 pandemics in the US, you noticed that during the pandemics, unemployment rises across states in 2020. Similarly, after state economies reopened and moved quickly out of the Covid-19 recession, unemployment rates also dropped in most states. However, there are still noticeable regional differences of how the job market performed in different states. The table below compares unemployment rates of Arkansas, California, New York and Texas in October 2019 (10/2019), October 2020 (10/2020) and October 2021 (10/2021). Use your language to explain the differences of unemployment rate between Arkansas and other three states. 5725 Unemployment rate (%) of selected States Date Arkansas California New York Техas 10/2019 3.5 3.9 3.9 3.5…