Question 1

Which are the richest and poorest countries listed in Global Perspective6.1.How does Canada compare to these two countries?

Accepted Answer

In 2016, the United States was

Question 2

Suppose that we are in a condition of "stuck" prices so that the price of wooden chairs will not go above or below $125/unit.Further suppose that chair factories have been built on a business plan designed to deliver 200/month.How many chairs will be sold in a market in which demand (which includes a modest amount of inventory) is characterized by: (a) P = 425 - 1.5Q, (b) P = 530 - 1.5Q, and (c) P = 400 - 0.5Q, where P is in $/chair and Q is in chairs/month? In each case, what happens to planned inventory.

Accepted Answer

(a) At $125/chair we get 125 = 425 - 1.5

Question 3

What three key statistics do macroeconomists study to assess the health of the economy? Give a short explanation of each.

Accepted Answer

Macroeconomists study real gross domesti

Question 4

What is modern economic growth?

Accepted Answer

Modern economic growth is the

Question 5

What will happen to prices and output levels if there is an unexpected decrease in demand and prices are fully flexible?

Accepted Answer

In this instance, output is fi

Question 6

"Most prices are not that sticky." Evaluate this claim.

Accepted Answer

While some prices like retail gas change

Question 7

What are two reasons why prices might be sticky?

Accepted Answer

First, consumers prefer stable and predi

Question 8

Why do economists worry about unemployment?

Accepted Answer

High unemployment rates mean that an eco

Question 9

Suppose that we are in a condition of fully flexible prices, but production of nails will not go above 6,000 kg/week.What price will nails sell for if market demand is characterized by: (a) P = 5 - 0.5Q, (b) P = 6 - 0.5Q, and (c) P = 4 - 0.5Q, where P is in $/kg and Q is in thousands of kg/week?

Accepted Answer

(a) P = 5 - 0.5(6), P = 5 - 3,

Question 10

If prices are "stuck" and there is an unexpected demand decrease, describe what happens in the economy.

Accepted Answer

An unexpected decrease in dema

Question 11

If prices are "stuck" and there is an unexpected demand increase, describe what happens in the economy.

Accepted Answer

An unexpected increase in dema

Exam 6: A: an Introduction to Macroeconomics

Which are the richest and poorest countries listed in Global Perspective6.1.How does Canada compare to these two countries?

What three key statistics do macroeconomists study to assess the health of the economy? Give a short explanation of each.

What is modern economic growth?

What will happen to prices and output levels if there is an unexpected decrease in demand and prices are fully flexible?

"Most prices are not that sticky." Evaluate this claim.

What are two reasons why prices might be sticky?

Why do economists worry about unemployment?

Suppose that we are in a condition of fully flexible prices, but production of nails will not go above 6,000 kg/week.What price will nails sell for if market demand is characterized by: (a) P = 5 - 0.5Q, (b) P = 6 - 0.5Q, and (c) P = 4 - 0.5Q, where P is in $/kg and Q is in thousands of kg/week?

If prices are "stuck" and there is an unexpected demand decrease, describe what happens in the economy.

If prices are "stuck" and there is an unexpected demand increase, describe what happens in the economy.

B: Limits, Alternatives, and Choices

A: - Limits, Alternatives, and Choices

B: The Market System and the Circular Flow

A: - The Market System and the Circular Flow

B: Demand, Supply, and Market Equilibrium

A: - Demand, Supply, and Market Equilibrium

B: Market Failures: Public Goods and Externalities

A: - Market Failures: Public Goods and Externalities

B: Governments Role and Government Failure

A: Governments Role and Government Failure

B: an Introduction to Macroeconomics

B: Measuring the Economys Output

A: Measuring the Economys Output

B: Economic Growth

A: Economic Growth

B: Business Cycles, Unemployment, and Inflation

A: Business Cycles, Unemployment, and Inflation

B: Basic Macroeconomic Relationships

A: Basic Macroeconomic Relationships

B: The Aggregate Expenditures Model

A: The Aggregate Expenditures Model

B: Aggregate Demand and Aggregate Supply

A: Aggregate Demand and Aggregate Supply

B: Fiscal Policy, Deficits, Surpluses, and Debt

A: Fiscal Policy, Deficits, Surpluses, and Debt

B: Money, Banking, and Money Creation

A: Money, Banking, and Money Creation

B: Interest Rates and Monetary Policy

A: Interest Rates and Monetary Policy

C: Financial Economics

A: Long-Run Macroeconomic Adjustments

B: Long-Run Macroeconomic Adjustments

A: International Trade

B: International Trade

A: The Balance of Payments and Exchange Rates

B: The Balance of Payments and Exchange Rates

The Economics of Developing Countries

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