Macroeconomics Essay Example | Topics and Well Written Essays - 2250 words

Macroeconomics - Essay Examplec. Inflation Rate(Current CPI - experience Years CPI) / Last Years CPI= ($95-$70)/$70 * 100%= 35.71%CRITICAL THINKING 1.c. I believe that the jobless recovery is most probably brought about by the light-colored confidence of the business sector on the economic recovery. They are hesitant of hiring new workers that they cannot sustain in the long run. In order to remedy this situation, they intermeshed in maximizing the production efficiency of individual workers to match the expected level of production. PROBLEM SOLVING6. In the short run, prices and quantity supplied are st open. So, if crave changes, these factors will be unresponsive. It will just create an entirely different equilibrium.10.a. Point Bb. Improvements in technology and improvements in crowd productivityc. high(prenominal) demandd. After the increase in aggregate supply, solid GDP is greater than potential GDP. e. Increase in aggregate demand which is due to higher consumer expen diture, government expenditure, and investments will equate potential GDP with real GDP.PROBLEM SOLVING10.a. Potential GDP will increase because of the higher labor force.b. function will be increase especially if all these immigrants secure new job opportunities.c. Real wage will go down because of the larger labor pool competing for jobs.CRITICAL THINKING2. Memo WritingTO MR PRESIDENTFROM StudentDATE 7 SEPTEMBER 2007TOPIC INCREASING POTENTIAL GDPThis is in response to your regarding the economic efforts which can increase the countrys potential GDP. The following programs are recommended1. Training and development programs which can enhance the efficiency of human resource2. higher(prenominal) wages that can motivate employees to work better3. Spending on research and development to improve...They are hesitant of hiring new workers that they cannot sustain in the long run. In order to remedy this situation, they engaged in maximizing the production efficiency of individual worker s to match the expected level of production.b. Chinas GDP is growing because of capital of the United States increases in labor as well as other factors such as strong inflow of foreign investments. The effects of these factors can be detached by finding their individual dollar contribution.c. It should be noted that China has a higher population than the United States. However, it is forecasted that with the rapid increase in real GDP, the per capita real GDP will equal in the two countries in the mid-2040s.2. I think baseball trading cards will be able to take the function of money in the economy. First, it is readily available to everyone, meaning everybody has an access to it as compared to tractor parts and impressionist paintings. As for store of value, it does not convey stale like a loaf of bread.8. Open market purchases operate in the economy by contracting demand causing a leftward raise in aggregate demand. This in turn, will lower the price level and GDP. This move d ecreases inflation in the long run while GDP is stabilized.b.