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Chapter: 21 -Problem: 7 >> President Trump has said that he doesn’t see why the U.S. economy cannot grow at 3 or 4 percent per annum (or maybe higher) indefinitely. Do you see why?
Answer Preview: Economic growth in the United States has been much slower than our post-…

, Chapter: 21 -Problem: 9 >> If the U.S. government wants to pursue a “trade war” against Country X, what weapons does it have? Would using those weapons hurt the United States as well? What if Country X retaliates in kind?
Answer Preview: Trade wars can be waged by imposing higher tariffs on imported products or implementing other vari…

, Chapter: 15 -Problem: 4 >> Given all the pros and cons, do you think the Federal Reserve should try to prevent asset price bubbles from forming? If so, how would it do that?
Answer Preview: I think the Federal Reserve should try to prevent asset price bubbles from …

, Chapter: 21 -Problem: 2 >> What platform markets do you participate in? Do network effects there seem important to you? Why or why not? If you pay to participate in a platform, would you still participate if the price was doubled?
Answer Preview: I participate in social media platforms. I believe that the network effects are important to …

, Chapter: 2 -Problem: 3 >> Why do you think per capita income in Maryland is nearly double that in Mississippi?
Answer Preview: There are several possible answers to this questionthe question is designed to get students to t…

, Chapter: 21 -Problem: 1 >> You probably bank online, rather than go to the bank. When your parents went to college, hardly anyone did that. What jobs did online banking destroy? What jobs did it create? How might artificial intelligence change the banking business?
Answer Preview: When my parents went to college, hardly anyone did that, as banks w…

, Chapter: 21 -Problem: 3 >> Do you think it is “fair” that gig workers have no minimum wage, no health insurance, and no pension? Is it efficient?
Answer Preview: Answer. The gig economy has assumed control over the world, with the vast majority not completely un…

, Chapter: 21 -Problem: 10 >> Budget projections show the debt-to-GDP ratio of the U.S. government topping its World War II high before too long. What problems does that pose?
Answer Preview: A growing national debt is the result of continued deficits which must …

, Chapter: 21 -Problem: 8 >> What are some policies the U.S. government could pursue to ease the burden on the losers from globalization?
Answer Preview: The right solution to ease the burden on the losers …

, Chapter: 21 -Problem: 5 >> You are probably covered by your parents’ health insurance policy. Where do they get health insurance?
Answer Preview: There is no one size - fits all answer to this question , as …

, Chapter: 21 -Problem: 11 >> One member of the Federal Open Market Committee says, “With the unemployment rate below 4 percent, inflation is bound to rise.” A second member objects: “There is very little reason to believe that.” Comment on their dispute.
Answer Preview: There no longer appears to be a predictabl…

, Chapter: 21 -Problem: 4 >> How much student debt do you expect to have on graduation day? Could you have attended your college without incurring this debt?
Answer Preview: Answer. A student loan is money that students borrows to help …

, Chapter: 21 -Problem: 6 >> The Affordable Care Act (known as “Obamacare”) tried to solve the adverse selection problem by getting everyone into the insurance pool. How? How well did it succeed? President Trump opposes Obamacare. Why? (You may want to do some Internet searching on this question.)
Answer Preview: The ACA tried to minimize adverse selection in two main ways. F…

, Chapter: 8 -Problem: 8 >> Between 2008 and 2009, real disposable income (in 2009 dollars) declined slightly (by $19 billion), owing to a recession. The decline in real consumption expenditures was far larger: $133 billion. Explain why dividing the two does not give a good estimate of the marginal propensity to consume.
Answer Preview: Dividing the two prices will give you a good estimate of the marginal propensity to c…

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11 Reviews for Macroeconomics Principles And Policy Textbook Questions And Answers