Macroeconomics questions and answers in March 2021

According to the permanent income hypothesis, how will the paths of borrowing and consumption change in response to: (a) A temporary decrease in income when it occurs. (b) A permanent decrease in inco...
Exercise 2 (8 points):   Below is the natural unemployment rate in 2017 for U.S., Canada, and the European Union Area: ·      Natural unemployment rate in U.S. was 4.4 % ·      Natural ...
Total points: 15 Exercise 1 (7 points)   A.   Assume that in an economy only 3 goods are produced and consumed: beans, fruit, and fish. Suppose that on January 1, beans sold for $2.50 per pound, f...
Yohanna, the CEO of a corporation operating in Ethiopia, decides to raise the wages of her workers, even though she faces an excess supply of labour. Which of the following is an expected result from ...
A.    Assume that in an economy only 3 goods are produced and consumed: beans, fruit, and fish. Suppose that on January 1, beans sold for $2.50 per pound, fish was $3.00 per pound, and fruit was ...
Below is the natural unemployment rate in 2017 for U.S., Canada, and the European Union Area: ·       Natural unemployment rate in U.S. was 4.4 %  ·       Natural unemployment rate in...
Below is the natural unemployment rate in 2020 for U.S., Canada, and the European Union Area: Natural unemployment rate in U.S. was 4.4 % Natural unemployment rate in Canada was 9.75 %. Natural unempl...
Assume that in an economy only 3 goods are produced and consumed: beans, fruit, and fish. Suppose that on January 1, beans sold for $2.50 per pound, fish was $3.00 per pound, and fruit was $1.50 per p...