Tag: GDP

In other words, would exports from US to Japan and European countries increase or decrease? Would imports from Japan and European countries to US increase or decrease?

Case Study BUS218

Discuss the change in price level and real GDP based on the events occurring in the scenario (Hint: study aggregate demand and supply shifters)

Recently, the US began to import wine from France. There are some opponents that argue imports will cut the price of domestic wine, leading to a decrease in the number of jobs in the US wine industry.
Provide counter-evidence that imports will bring overall benefits to our nation in terms of improving the total welfare (sum of consumer and producer surplus).

The exchange rate between dollar (US currency) and yen (Japan currency) was 120¥/$; and the exchange rate between dollar (US currency) and euro is 1.3€/$ in 2014, and the exchange rate increased to 130¥/$ and 1.5€/$, respectively in 2015.
Predict the pattern of export and import between those three countries in 2015 compared to 2014. In other words, would exports from US to Japan and European countries increase or decrease? Would imports from Japan and European countries to US increase or decrease?

Identify and discuss a recent global financial crisis.Critically evaluate financial literacy including the impact on macroeconomic factors i.e. inflation, unemployment and GDP.

Finance

Identify and discuss a recent global financial crisis.

Critically evaluate financial literacy including the impact on
macroeconomic factors i.e. inflation, unemployment and
GDP.

What is the percentage of domestic credit to the private sector in the USA? Can you say if it is it increasing or decreasing since 2004 to 2019? What is an important reason for the fluctuation?

Assignment # 2

How were these numbers in 2009 during the height of the 2008/2009 recession? Would you expect, in the Commercial Paper market, the Yield Curve (interest rate) for bonds in a recession to be high or low? During the previous recession of 2008 / 2009 the Commercial Paper market froze and the Federal Reserve intervened to inject cash into the market. How can we understand/think about it?

How about demand of junk bonds by investors in a recession period versus a strong economic growth period? How can we can understand/think about it?

Why commercial bank lending is important for a country’s economic health and GDP of a particular country?

What is the percentage of domestic credit to the private sector in the USA? Can you say if it is it increasing or decreasing since 2004 to 2019? What is an important reason for the fluctuation?

What do they mean for a company looking to expand abroad?risks due to natural disasters, corruption, lack of payment, etc. and mitigation strategies such as insurance from the EDC (which ones?

Here are some topics they can explore for each section:

Political - political corruption, current political views towards foreign business, investment
Economic - GDP, GNI, PPP, country debt, etc. These numbers need analysis – what do they mean for a company looking to expand abroad?

Risks and Mitigation - risks due to natural disasters, corruption, lack of payment, etc. and mitigation strategies such as insurance from the EDC (which ones?), using a letter of credit transaction, and other methods of mitigation
Other Aspects - currency, transportation, infrastructure, etc.

Discuss what GDP is and what it measures. Discuss what the shortcomings (limitations) of GDP as a measure of well-being and welfare of a nation are.

No header or title

Gross Domestic Product (GDP) is the broadest measure of output for an economy. However, GDP does not perfectly measure the well-being of a nation and its citizens’ welfare. Discuss what GDP is and what it measures. Discuss what the shortcomings (limitations) of GDP as a measure of well-being and welfare of a nation are.

What is the relationship between opportunity costs and trade-offs?What is the difference between a change in supply and demand and a change in quantity supplied and demanded?

Multiple Choice Question Test

How does the US Government pay for most public goods and services?

What is the relationship between opportunity costs and trade-offs?

What makes an economic decision rational?

What is the difference between a change in supply and demand and a change in quantity supplied and demanded?

What groups of people are helped by inflation?

What groups of people are hurt by inflation?

What are the different types of unemployment?

What types of things are not included in GDP?

What are the safest financial assets?

What is the relationship between risk and reward?

What types of things go into determining your creditworthiness?

How did you alter your spending patterns during this pandemic? Do you expect consumer confidence and business expectations to improve in the months ahead? Utilizing the equation GDP= C+I+G+ (X-M) from Chapter 6 what is your forecast for which way the AD curve will shift between now and the end of 2021? Why?

Math/Physic/Economic/Statistic Problems

#1: Draw and carefully describe a graph that utilizes the Aggregate Demand/Aggregate Supply model that would illustrate the current state of the aggregate economy in the United States as of October 2021. The Aggregate Demand/Aggregate Supply Model is first introduced in Chapter 11 (Links to an external site.) of your text and is further explicated in Chapters 12 and 13. Make sure that you explain your graph in your own words. Illustrate the current state of the economy relative to real potential GDP (Links to an external site.).

How big is the gap between actual and potential real GDP?

For information about how to embed an image in a discussion and reply see: (Links to an external site.)

 

Draw your graph rather than cut and paste from an outside source. Graphs that are simply copy and pasted from other sources including your text will be penalized at least 4 points.

#2: As you have learned consumer expectations (Links to an external site.) are a major driver of the short run path of the economy. Consumer spending account fors about 70% of GDP and consumer confidence (Links to an external site.) is a major factor in shifting Aggregate Demand. Describe how your expectations about the economy have changed because of Covid-19.

How did you alter your spending patterns during this pandemic? Do you expect consumer confidence and business expectations to improve in the months ahead? Utilizing the equation GDP= C+I+G+ (X-M) from Chapter 6 what is your forecast for which way the AD curve will shift between now and the end of 2021? Why?

Here is a figure from your text that you can model and adapt in framing your response:

Macro Equilibrium with recessionary gap from text

In Q3 of 2021 the price level is about 119 with a base year of 2012. Real GDP is about $19.5 trillion and potential real GDP is about $19.8 trillion so there is an output gap of about $300 billion.

Consider a coin toss experiment and the following assets. Asset A gives £200 if the first is heads, £50 for tails. Asset B gives £200 if the second is heads and £50 for tails. Asset C is half of A plus half of B. Assets A and B are independent. Show that the expected value of each asset is the same and C reduces risk. Explain why C reduces risk?

Math/Physic/Economic/Statistic Problems

1. a) Calculate the equilibrium GDP of a Keynesian demand driven closed economy with autonomous investment and government expenditure. Derive the Balanced Budget Multiplier.

b) Now relax the assumption on autonomous investment. Introduce the investment function , where is the real interest rate. Derive the IS curve. If the LM curve in this economy is then derive the equilibrium output. Derive the multiplier effect and explain. Would there be a crowding out?

2. Consider a coin toss experiment and the following assets. Asset A gives £200 if the first is heads, £50 for tails. Asset B gives £200 if the second is heads and £50 for tails. Asset C is half of A plus half of B. Assets A and B are independent. Show that the expected value of each asset is the same and C reduces risk. Explain why C reduces risk?