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>Economics homework help

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1. GDP is a key concept in Macroeconomics.
a. What is the definition of GDP?
b. Go to bea.gov and tell me the level of GDP for the past 4
years.
c. Go to topic called Economic Growth and look at slide 3 and
tell me if the falling trend line is a good or bad thing for the
nation and why. Please be thorough!
d. List and explain in detail, the 3 different approaches to
calculating GDP.
i. List and explain the approaches and how you would use each to
calculate GDP.
e. List and explain 4 types of transactions that would not be
included in GDP and why they should be omitted.
i. Look in the notes and find 4 types of transactions that are
excluded from the computation of GDP and write them down
along with the explanation of each and why they are not
included.
f. Thoroughly explain the 4 components of GDP and relate
those components to the Circular Flow model with
government and international trade.
g. Nominal versus real GDP.
i. Explain the difference between nominal and real
GDP.
ii. Explain in detail, how to calculate real GDP,
including the factors used in the calculation.
1. Look in the notes to find this – very straight forward.
iii. Explain in detail the CPI since it is used to make the
conversion.
iv. Explain what you can do with real GDP that you
cannot do with nominal GDP and explain why not.
h. GDP and GDP per-capita.
i. Explain the difference between GDP and Per Capita
GDP;
ii. Explain how to calculate Per Capita GDP, and how
Per Capita GDP can be used.
2. The Business Cycle and Built in stabilizers.
a. What can the business cycle tell you about the status of our
economy today and into the future (please provide detail)?
b. Given what you have learned about the U.S. Business cycle
over the past 60 years, please explain 4 ways you can use
that information to enhance your odds of achieving future
personal success. Please do not talk about your financial
portfolio or playing around with the stock market.
c. Explain in some detail the 4 phases of the business cycle,
Please don’t include Depression as one of them. including the
characteristics of each. Be thorough! You should have at
least 4 characteristics for each phase! Include in your
discussion how each phase of the business cycle might impact your life
and what you should do to minimize the damage to your future.
d. Explain in detail, 4 possible causes of change in the
direction of the business cycle. You are looking for things that are
out of the control of the government. Do not talk about fiscal or monetary
policy tools here. Don’t say inflation or recession!
3. Unemployment and Recession
a. Explain in detail, how the unemployment rate is calculated.
b. Explain in detail, how we define the employed, the
unemployed, and who is in the labor force?
i. The link BLS website should help –
http://www.bls.gov/news.release/empsit.t15.htm
c. List and explain (don’t just copy and paste) the various
unemployment rates used by the BLS, and indicate which
one of the 6 is the official unemployment rate.
i. This link to the BLS website should help –
http://www.bls.gov/news.release/empsit.t15.htm
d. There has been a historic disparity between unemployment
rates for Black, Hispanic, and White workers.
i. Please provide detailed explanations of 4 reasons
the Black and Hispanic unemployment rates are
always significantly higher than the unemployment
rate for Whites.
ii. Explain in detail, 3 things that should be done to
correct the problem. Be sure you explain how each
recommendation would actually lead to solution of
the problem. Please be very thorough with this.
e. The 3 types of unemployment.
i. List and explain the 3 types of unemployment that
we discussed. Include the characteristics of each
and the role of skills for each.
ii. Explain how each type contributes to growing
income and wealth inequality.
1. You would want to list and explain the 3 types. You will
find everything on the 2 or 3 slides plus the audio provides
additional insight.
f. List and explain thoroughly, 4 examples of significant
economic costs of unemployment and what we might do to
reduce those costs.
g. Unemployment and how to use Fiscal Policy to address
Recession.
Background for this question:
The US economy is currently experiencing recession
according to the Federal Government. You can use only
Fiscal Policy and the AD – AS model.
i. List and explain the 3 Fiscal Policy tools covered in
the slides that apply to fixing recession, and indicate
the one that you want to use to attack the recession
problem?
1. List the 3 choices and state specifically which one you will
use. Please note that transfer payments would come under
the heading of government spending! So don’t use it as
one of your 3 tools of fiscal policy.
ii. Explain why you selected this tool and not the
others. Refer to your decision criteria.
1. Consider the pros and cons of each of the 3 tools and tell
me why you picked the one you picked and why you did
not pick the other option(s).
iii. Explain how your tool would solve the recession
problem and what effects your solution would have
on at least five key economic variables. BE SPECIFIC!
I WANT TO SEE THE DETAIL. USE THE WHAT HAPPENS
NEXT APPROACH!
1. Explain how your choice of tools would work to solve the
problem of recession. Start with the implementation of
your tool and then list step by step what happens next, until
you arrive at the appropriate impact on GDP. Be sure you
provide the detailed step by step flow.
2. Using that approach allows the list the key economic
variables and how each would be affected, to pop right out.
4. Inflation
a. What is inflation and how is it calculated?
b. List and explain the two types of inflation
c. Give two examples of who might be hurt by inflation and
why.
d. Give two examples of who might be helped by inflation and
why.
e. Inflation and how to use Fiscal Policy to address the
problem of Inflation.
Background for this question:
Assume the US economy is currently experiencing high
rates of inflation according to the Federal Reserve. Use only
Fiscal Policy and the AD – AS model.
i. List and explain the 3 Fiscal Policy tools covered in
the slides and indicate which tool you will use to
attack the inflation problem?
1. List the 3 possible choices and then just tell me which of
the tools you would select. Just write it down.
ii. Explain why you selected this particular tool and
not the others. Refer to your decision criteria.
1. Consider the pros and cons of each of the 3 tools and tell
me why you picked the one you picked and why you did
not pick the other option(s).
iii. Explain how your solution would work to solve the
problem of inflation and what effects your solution
would have on at least five key economic Variables?
BE SPECIFIC! I NEED TO SEE THE DETAIL.
USE THE WHAT HAPPENS NEXT APPROACH!
1. Explain how your choice of tools would work to solve the
problem of recession. Start with the implementation of
your tool and then list step by step what happens next, until
you arrive at the appropriate impact on GDP. Be sure you
provide the detailed step by step flow.
2. Using that approach allows the list the key economic
variables and how each would be affected, to pop right out.
6. The Aggregate Demand curve shows the level of real output that
the economy will purchase at each price level.
a. List and thoroughly explain the three reasons the Aggregate
Demand curve is downward sloping.
i. In your explanation, please start with an increase in prices and
work through to a decrease in AD.
b. List and explain in detail, the components of Aggregate
Demand and explain each of their determinants
i. You studied the 4 components. List and explain them and under
each list and explain the determinants of each.
c. Explain how the Aggregate Demand – Aggregate Supply
Model differs from the Aggregate Expenditures model
i. Put the two models side by side, look for the differences and
explain them.
5. The basic macroeconomic relationships introduced a number of
key concepts.
a. Please explain the relationships between income,
consumption, savings, and GDP.
i. Define each
ii. Explain the relationship between these items.
b. Please explain the relationships between interest rates,
expected rates of return, investment, and GDP. Be specific
and be thorough.
i. All of the necessary info is provided in the slides and audio
lectures
c. Please explain the concept of the multiplier, including:
1. What information is required to calculate the
spending multiplier
a. Refer to the slides, the info is there. Look closely –
don’t miss this!
2. List and explain the 3 different multipliers that
we discussed.
a. Again, refer to the slides, it’s all there.
3. Explain in detail how the multiplier works to
impact GDP. Be specific!
a. Use the chart from the slide set as the basis of your
explanation. Start with the injection of money into
the economy and then how that affects household
income and then spending via the mpc. Go on to
discuss the rounds of spending, etc. and how the
ultimate impact on gdp is amplified by the
multiplier effect.
6. We discussed four problems that complicate the application of
fiscal policy.
a. List and thoroughly explain these 4 problems, including
how each would likely impact the overall effectiveness of
fiscal policy. Be specific! Be thorough!
i. You should list the 4 problems associated with Fiscal Policy that
were listed in the slides and explain the factors associated with
each. And as you address each problem, discuss how each would
impact the effectiveness of fiscal policy.
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>Economics homework help

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