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The two-sector growth model developed by Paul Romer shows that the rate of laboraugmenting technological change depends on the proportion of the labor force devoted to research and development and on the productivity of researchers. a. Suppose that government subsidies for green energy lead to a larger fraction of the labor force devoted to research […]

The AK growth model highlights the importance of private capital accumulation in generating economic growth. India has devoted a substantial portion of its high level of private saving to finance government debt. Use the AK growth model to show the effect on India’s growth rate of the standard of living if India’s private saving were available to finance private

One determinant of the productivity of labor Is the human capital, or the skills and education of the labor force. Use the CIA World Factbook Web site (https://www.cia.gov/library/publications/ the-world-factbook/) to look up education expenditures as a percentage of GDP. Which countries spend the most on education? The least? Are there any general relationships between the level

If the inflation rate turns out to be greater than the expected inflation rate, will the expected real interest rate be higher or lower than the actual real interest rate? Explain under what circumstances lenders gain and borrowers lose if the inflation rate differs from the expected inflation rate.

Using data from the St. Louis Federal Reserve (FRED) (http://research.stlouisfed.org/ fred2/), analyze the money supply. a. Find the most recent values from FRED for the Currency Component of M1 (CURRNS), Total Checkable Deposits (TCDSL) and Excess Reserves of Depository Institutions (EXCRESNS). b. Using the data found above, calculate the value of the currency ratio. c.

Using data from the St. Louis Federal Reserve(FRED) (http://research.stlouisfed.org/fred2/), analyze the money supply. a. Find data from FRED for the M1 Money Stock (M1SL) and the M2 Money Stock (M2SL) from 1959 to the present b. Using the data found above, calculate M1 as a proportion of M2 for each of the years. c. Explain

Using data from the St. Louis Federal Reserve (FRED) (http://research.stlouisfed.org/ fred2/), analyze what happened to the money multiplier. a. Find data from FRED for Excess Reserves of Depository Institutions (EXCRESNS), the monetary base (AMBSL), M1 (M1SL) and M2 (M2SL). b. Calculate the M1 multiplier and the M2 multiplier. Graph the value of these multipliers since

April 2012, the unemployment rate fell from 8.2% to 8.1%, but the number of people in the labor force decreased by 342,000. Recent declines in the labor force have had a large effect on the unemployment rate. An article on USAToday. com noted that: “If the same percentage of adults were in the workforce today

Consider the following statement: “Because there will always be frictional and structural unemployment, there is no reason for government policymakers to be concerned about them. They should only be concerned about cyclicalunemployment.” Do you agree with this statement? Briefly explain.

Using data from the St. Louis Federal Reserve (FRED) (http://research.stlouisfed. org/fred2/), analyze the unemployment rate. a. Download monthly data on the U-3 unemployment rate (UNRATE) and the broader U-6 unemployment rate (U6RATE) from 1994 to the present. Chart the two data series in a graph. b. Calculate the average value and the standard deviation for