dvrsCHAPTER 1
Problems
1. Increas in the availability of resources, that is, labor and capital ud in the production of goods and rvices account for only part of a nation's economic growth. The efficiency with which the factors of production are ud also affects economic growth. Increas in the efficiency of production result from increas in the education and skill levels of the labor force and from newer and more efficient technology. In addition, the factors of production are not fully employed all the time. During an expansion or recovery, the u of the factors of production increas, which leads to an increa in production and output.
2.A shift in aggregate demand caus the unemployment rate and the inflation rate to move in opposite directions, whereas a shift in aggregate supply caus unemployment and inflation to move in the same direction. Most disturbances in the 1960s came from the demand side, while many of the disturbances in the 1970s and 1980s came from the supply side.
3. 2017考研国家线预测The AD-AS framework is a static framework that assumes that the level of potential GDP is fixed. However, the potential GDP of a nation grows over time as the amount of available resources or the efficiency with which the resources are ud increas. Figure 1-4 in the text clearly indicates that the long-run (vertical) AS-curve moves to the right by a small percentage each year.
4. Growth theory focus primarily on the accumulation of inputs and improvements in technology that allow for an incread standard of living over time. Since growth theory tries to explain the average growth rate of an economy over many years, it ignores the short-run fluctuations (recessions and booms) that occur over the cour of business cycles.
5. 迪拜十大建筑The short-run AS-curve is completely horizontal, bad on the assumption that prices are constant. An increa in aggregate demand will therefore increa the level of output but will not affect the price level. It follows therefore that in the short run the level of output is solely determined by aggregate demand.
whatever you like6. The short-run Phillips curve describes an empirical relationship between wage and price inflation and the rate of unemployment. This curve shows that the higher the rate of unemployment, the lower the rate of inflation and vice versa (at least in the short run). However, in the long run there is no clear-cut tradeoff between inflation and unemployment. The economic events of the 1970s and 1980s showed us that unemployment and inflation can increa or decrea simultaneously.
7. The answer to this question is student specific. Here is a sample answer.
The labor ctor:
walkingEmployment figures as well as the unemployment rate should be ud to look for changes in the labor ctor. The unemployment rate is more often discusd in the media, but the employment figures have smaller cyclical variations and are thus a better indicator of labor market conditions.
Business activity:
十二月 英文New orders, changes in inventories, capacity utilization, and industrial production are often ud to interpret business activity. When using inventory changes it is important to distinguish between desired inventory changes, which may reflect changes in business expectations, and undesired inventory changes that reflect changes in the demand for the product.
The financial ctor:
Stock market activity, changes in money supply, or credit conditions can be ud to show trends in financial markets. While the relationship between changes in stock values and the economy is not as clo as it ud to be, a continued increa in stock prices generally reflects incread optimism about future economic conditions. It also means an increa in wealth for stockholders and easier access to funds for firms wishing to make new investments.
Residential construction:
A change in new building permits or housing starts may be the first sign of changing economic conditions. The housing ctor is very nsitive to interest rate changes and tends to be indicative of other ctors of the economy, which often react in a similar way although to a lesr degree and with a time lag.
orders
男生秋装搭配8. Desired inventory changes reflect changes in business expectations and can be ud as a leading economic indicator. But undesired inventory changes reflect changes in demand for the product and are therefore a lagging economic indicator. Only if one can parate out desired from undesired inventory changes, will it be possible to spot more clearly signs of an upcoming boom or recession.
英汉翻译在线 The GDPdeflator is the most complete price index, since it measures price changes of all final goods and rvices currently produced in a country. But the GDPdeflator is a lagging indicator, showing what has happened over the last quarter. In addition, initial GDP data tend to be fairly unreliable and have to be frequently revid.
