As a new decade begins, I see five big questions facing macroeconomists, which I have listed in a roughly increasing order of difficulty. It is expected to remain low for at least another year or two. The year yield on U. It would seem like a lot of public investments would be profitable if financed at this remarkably low interest rate. Increased subsidies to research by universities and corporations? Spending on infrastructure like roads or hospitals?
What are the lessons of China for Africa? InChina had about same per capita GDP and population. In the intervening two decades, per capita GDP has quintupled in China. In particular, China has contradicted basic neoclassical economics by making many kinds of government interventions in its economy. Which if any of those interventions have helped lead to its unusually rapid growth? Could those be replicated by the individual governments in Africa?
Can an old and shrinking population be the basis for a dynamic economy? What macroeconomic policies would need to be undertaken to ensure that happens?
Should governments of developed countries around the world be working to slow economic growth to help reduce the pace of climate change?
How would it be possible to build the needed international popular support for this approach? Narayana Kocherlakota is a Bloomberg Opinion columnist.
He is a professor of economics at the University of Rochester and was president of the Federal Reserve Bank of Minneapolis from to Home All Sections Search. Log In Welcome, User. Coronavirus Minneapolis St. Suddenly unemployed, worried Minnesotans are left scrambling. Trump gives governors three-phase plan to reopen economy. Minnesota hair salon owners now bracing for worst. Woman injured after St. Paul parks worker clears tent while she is inside.When there is unemployment caused by a lack of consumer spending, we classify this type of unemployment as?
When there are vacancies in the job-market, but also high levels of unemployment, then we could say that this unemployment is? Which of the following is the least likely to occur if there is a sustained rise in consumer spending? Table of Contents Topic pack - Macroeconomics - introduction 2. Macroeconomic objectives - self-test questions 1 Demand-side unemployment Demand-side unemployment is partly caused by: a Imperfections in the labour market b Occupational and geographic immobility of factors c Demographic changes d A lack of aggregate demand Yes, that's correct.
Well done. This is the main reason demand-side unemployment arises. No, that's not right. The correct answer is D, as this is the main reason demand-side unemployment arises. A is central to supply-side unemployment and B is also considered to be part of the supply-side theory. C is certainly a cause of unemployment, but not directly related to the demand-side theory.
Your answer has been saved. That's correct. Demographic is not a type of unemployment. The correct answer is D, which refers to people and the population. It might have some influence on the rate of unemployment, but it is not a type.
The others are all types of unemployment together with cyclical or demand deficient. Imports have only a limited link to employment. The correct answer is C as imports have only a limited link to employment. The others, together with an increase in government expenditure are all 'costs' of unemployment.
This should boost spending and lead to a need to employ more people to meet the increase in demand. The correct answer is D as this should boost spending and lead to a need to employ more people to meet the increase in demand. A would have the opposite affect and so would B. C, which is monetary policy would also be used to slow an economy and that might increase unemployment.James Bullard — Bio Vita. In this report, find out how banks, foundations, CDFIs and others are engaged in impact investing in St.
How is your community reflected in our work? Louis Fed board and advisory council members share their perspectives. Presentation pdf Press Release. Toggle navigation and search. Regional Data and Reports. Information Services. Research Newsletter. Seminars and Conferences. About Economic Research. Latest Remarks and Interviews. Speeches, Presentations and Commentary. Community Development Bridges. Booklets, Guides, Brochures. Outlook Survey.
Economic Synopses. Page One Economics. Demographics of Wealth. Ag Finance Monitor. Louis Fed in Your Community Brochure. Sign Up for Central Banker!What determines economic growth? Why does output fluctuate? Why do we have inflation and why is it a problem? Why do we have unemployment and why is it a hindrance to the economy?
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Change in price level from base year to current year. None of the above. Trivia Quiz. The performance of the economy is dependent on various factors. By studying microeconomics, you get to learn more about the changes in the environment and what the changes mean for the True Or False Quiz.
When people get money, making more money through what they save up is all they can think about, and this is made possible by them making proper investments This quiz covers many topics of macroeconomics. There are 10 multiple choice questions and you will have 10 minutes to complete the quiz Stay-at-home parents. Discouraged workers. People looking for a job. Retired people. Macroeconomics [ch.
Demand Quizzes. Investment Quizzes.Why don't fictional characters say "goodbye" when they hang up a phone? What evidence does Coutu use to support her claim that improvisation requires resilience. All Rights Reserved.
The material on this site can not be reproduced, distributed, transmitted, cached or otherwise used, except with prior written permission of Multiply. Hottest Questions. Previously Viewed. Unanswered Questions. Wiki User Seeing as this is one of the broadest topics in economics, there are a great many questions that deal with it. These can be questions that ask the difference between different indicators, questions that ask what the monetary policy would be in a given situation, or questions that deal with macroeconomic history.
Related Questions Asked in Macroeconomics Which of the following areas concerns macroeconomics? We need more details in your question in order to provide you an answer. Asked in Macroeconomics What level does macroeconomics focus on? Which level does macroeconomics focus on?
Asked in Macroeconomics What is managerial macroeconomics?
Managerial macroeconomics is a subject that relates the theories and concepts of macroeconomics to real life business situations. Asked in Macroeconomics What does the term macroeconomics refer to? Macroeconomics refers to the national economy. Asked in Macroeconomics When was Journal of Macroeconomics created? Journal of Macroeconomics was created in Asked in Macroeconomics How do you use macroeconomics in a sentence? I don't think you can use Macroeconomics in a sentence. Asked in Macroeconomics Does not describe macroeconomics?
Macroeconomics examines the consumer purchases of families and age groups. Asked in Parts of Speech What is the part of speech for macroeconomics?
The word macroeconomics is a noun. It is the study of the entire economy.
Asked in Macroeconomics What are the Methodological differences between microeconomics and macroeconomics? Asked in Macroeconomics Macroeconomics is concerned with the economy as a whole? Macroeconomics is concerned with the functions, interactions, and changes in the larger economic.
Macroeconomics represents aggregate economic decisions, which are the sum of individual decisions. Macroeconomics does not need to be associated with the economy as a whole, but it usually is. Asked in Macroeconomics Explain macroeconomics objectives from the conventional perspective?
Explain macroeconomics objectives from the conventional perspective? Asked in Macroeconomics What statement does not describe macroeconomics? Brian Snowdon has written: 'A Macroeconomics Reader' 'A modern guide to macroeconomics' -- subject s : Macroeconomics, Comparative economics, Keynesian economics.Do you know a Phillips curve from an Engle curve? Inflate your knowledge of macroeconomics with this quiz.
Question: In macroeconomics, the business cycle refers to… Answer: The business cycle refers to fluctuations in the level of output. Consecutive increases in output are called expansions, whereas consecutive decreases are referred to as recessions.
Question: If the central bank of a country decides to reduce the short-term interest rates, this likely means that… Answer: Reducing short-term interest rates represents an expansionary form of monetary policy. The aim of expansionary policies is to boost output in the short run, most likely to avoid a possible upcoming recession.
Question: In macroeconomics, the negative relationship between inflation and unemployment is summarized by Answer: The Phillips curve, first proposed by economist William Phillips indepicts a negative relationship between inflation and unemployment: a higher inflation rate in an economy usually implies a lower unemployment rate, and vice versa. Question: Printing money and distributing it to all people is not a viable solution to heal world-wide poverty because… Answer: Printing money is very easy and costs very little for central banks.
However, it cannot be a solution to end poverty because it will result in inflation price increases. Over time, inflation will wipe away any increase in income that resulted from the money distribution. Question: The largest component of the gross domestic product GDP is Question: The exchange rate between the domestic and a foreign currency is determined by… Answer: Just like the price of any good, the exchange rate which is the price of the domestic currency relative to a foreign currency is also determined by the laws of supply and demand.
For example, the higher the demand for US dollars, the more valuable the US dollar will be, resulting in a higher exchange rate for the US dollar vs.
Question: The school of thought in economics that believes that a government should proactively respond to economic recessions by increasing public expenditures to boost demand is… Answer: The Keynesian School, founded by British economist John Maynard Keynes during the Great Depression era, proposes active government intervention during economic downturns.
Question: Laissez-faire economists advocate… Answer: "Laissez-faire" in economics is a term that is used to describe the absence of government intervention in free markets. Laissez-faire economists strongly oppose any form of government intervention.
Macroeconomics Basics Do you know a Phillips curve from an Engle curve? The faster you answer, the higher your score.
AP Macroeconomics Exam Free-Response Question and Scoring Information Archive
The expansionary monetary policy and quantitative easing of the major central banks, including the latecomer European Central Bank ECBhave taken immediate collapse off the agenda and provided a lifeline to the world economy. Yet, without lowering debt and ensuring sustainable fiscal systems including in a social sense two risks emerge: either the system cracks, or at best, growth is too slow for structural changes required. And without reducing structural and long-term unemployment, the social consensus to address the fiscal problem cannot be created.
This leads the work towards three critical questions focusing, respectively, on economic growth, public finance and social security. The starting point is that one cannot really discuss public finance without discussing growth — sustainable growth. By definition, economic activity measured in GDP is the denominator measuring the burden public expenditure and public debt create in an economy; thus, stronger and sustained GDP growth is essential for sustainable public finances and social security systems.
These factors are intimately intertwined and affect each other, which is why they make up the key elements in the equation that defines economic and social success. What kind of policy mix of monetary policy, fiscal policy and structural reforms can support stronger and more sustainable growth?
Five Macroeconomic Questions for 2017
Many underline demand-side weaknesses and the constraints low inflation creates for monetary policy to keep activity close to the potential. Others refer to supply-side barriers, due to demographics and weakening impact of technological change on total factor productivity.
While Europe was the epicentre of the crises in and returned to the forefront in early with the victory of Syriza in Greeceit is important to take a global perspective. The emerging market economies, particularly China, India and Brazil, were able to grow throughout the financial crisis.
What can we learn from the policy choices of the emerging economies? What can we learn from the experience of the Asian financial crisis in the late s, especially on how the majority of Asian countries put their fiscal houses in order and maintained solid growth rates during the recent crisis? Did the US combination of the early financial repair and expansive monetary policy bring better results than the half-hearted monetary stimulus and delayed financial repair of the Eurozone? What lessons are there to be learned from comparing Europe and the United States in the current debate on sustainable growth?
Did the UK policy mix of expansive monetary policy and rigorous fiscal policy defy the critics and bring the economy back to growth better than they expected? This issue may have played a key role in the story of European economic policy in the wake of the financial crisis.
Would robust fiscal consolidation in the early years of the crisis, while necessary to restore confidence, have had much less negative impact on short-term growth in case the ECB had started its outright monetary transactions OMT and quantitative easing QE earlier than in the autumn of ? But these elements were fundamentally intertwined. OMT promised monetary easing but required fiscal discipline.