Monetary and fiscal policy are government attempts to smooth the business cycle, especially the use of expansionary policies to return to GDP growth from a recession. The goals are relatively short-term, notmore than 5 years. Long-term growth, however, is arguably more important and the subject of last section of the course.
1. If natural resources are ultimately finite, does this imply that there is a limit to per capita GDP? Explain.
2. The great economist Joseph Schumpeter coined the term “creative destruction” to characterize the free market economy. Why should governments facilitate competitive markets and free international trade if competition is inherently destructive?
3. Should the national government ensure income equality through taxation and wealth redistribution?
4. According to Monetarists, what is the long-term result of continuing expansionary monetary policy in which the money supply grows faster than RGDP? Briefly explain using the EOE.
5. During a recession, politicians and economists often speak of returning the nation to full employment. Does this mean zero unemployment? If not, why isn’t zero unemployment desirable?
6. Relatively free trade exists between the US and Mexico as a result of the North American Free Trade Agreement (NAFTA). Should the Law of One Price prevail in major consumer goods sold in the 2 countries? Explain.
7. Suppose the United States has an absolute advantage in the production of 2 goods compared to another country. Could it benefit in trade of these goods with that country?
8. Like the Great Depression of the 1930’s, the Great Recession of 2008 will be studied for many years. Many causes have been identified for both periods. In a short paragraph, explain one of the many causes of the Great Recession.
1. A spherical bulb 10 cm in radius is maintained at a temperature of 27°C, except for one square centimeter, which is kept a t a very low tempera true. The bulb contains...May 08 2020
theschematic of a vapor power plant in which water steadily circulates through the four components shown. The water flows through the boiler and condenser at constant p...May 05 2020
On July 1, 2013, Houghton Company borrowed 200,000 euros from a foreign lender evidenced by an interest-bearing note due on July 1, 2014. The note is denominated in euros...Aug 13 2020
the firm manufactures photocopying machines and the production plant requires 3933 rollers every year. The supplier claims OMR 22.1 for ordering each time and each roller...Apr 15 2021
When a group wants to achieve a consensus or unanimous decision, the responsibility of the chair is to be constantly attentive to the group process. Identify which of the...Jun 03 2020
1.- Why are bonds treated as retired during the consolidation process?2.- How long-term construction contract are accounted on the consolidation process.3.- how accountin...Sep 09 2020
On February 12, 2002, Nancy Trout and Delores Lake formed Kingfisher Corporation to sell fishing tackle. Pertinent information regarding Kingfisher is summarized as follo...Apr 18 2020
Job bid price and direct, sequential, and reciprocal allocations Sherman Company manufactures and sells small pumps made to customer specifications. It has two service de...Jul 01 2020
Andrea Apple opened Apple Photography on January 1 of the current year. During January, the following transactions occurred and were recorded in the company's books:A...Apr 11 2020
Kaahi Shop, Inc., is a large retailer of surfboards. The company assembled the information shown below for the quarter ended May 31: Amount Total sales revenue $ 800,000...Nov 08 2017