Category: Economics

Question 2The outbreak of the coronavirus has also affected the United States’ trading partners.What are the short-term economic effects on the U.S. economy of a decline in output among its trading partners? Analyze, illustrate, and explain. (Analyze a change in both Y and Y in two open economies)

Weigh the pros and cons of a large trade deficit. 3. Is the government budget deficit of a country linked to its current account balance? How so? Explain how it is possible for the United States’ current account deficit to grow while the budget deficit has disappeared, as happened in the 1990s.

The marginal product of labor is equal to theslope of the marginal product of labor curve.total product divided by the total mumber of worters hired.None of the above answers are correct.increase in the total product that results from hiring one more worker with all other inputs remaining the same.

Tanya routinely posts in an online Reddit forum for progressives who advocate for abolishing the police. All of her news and information comes from interactions on the Reddit forum. This would be an example ofa) mainstream media.b) citizen journalism.c) a filter bubble.d) adversarial journalism.

➤ Why do higher exports boost aggregate demand while more imports reduce it?
Foreign demand for domestic products injects new spending into the home economy, so higher exports increase aggregate demand. Imports are leakages because spending flows abroad instead of supporting domestic output. The net effect on AD equals the change in exports minus the change in imports, adjusted by multipliers and exchange-rate responsiveness.

➤ Why does raising the federal funds rate help curb inflation?
Raising the federal funds rate curbs inflation by increasing short-term interest rates. Higher rates raise borrowing costs, lower consumer spending and business investment, and reduce aggregate demand. The policy also supports a stronger currency and helps prevent inflation expectations from rising, which helps bring price growth back toward target.

Price elasticity of demand is theSelect one:
percent change in price divided by the change in quartity.
change in quantity divided by the change in price.
percentage change in quantity demanded divided by the percentage change in price.
change in price divided by the change in euartity.