Economics: Friedman argued thatinflation is caused by: a) Excessivegovernment spending b) Supply shocksin the economy c) Increases in the moneysupply that exceed the growth of realoutput d) Wage and price rigiditiesAccording to Friedman, what is the roleof government in education? a) Toprovide universal access to education

The objective of the question is to understand the economic theories of Milton Friedman,…

Answered: Economics: Friedman argued that…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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If there is a high rate of inflation (as well as an ample money supply), this finding is associated with principle # Principle #1: People (Including Individuals and Society As a Whole) Face Tradeoffs Principle #2: The Cost of Something is What You Give Up to Get It Principle #3: Rational People Think at the Margin Principle #4: People Respond to Incentives Principle #5: Trade Can Make Everyone Better Off Principle #6: Markets Are Usually A Good Way to Organize Economic Activity Principle #7: Governments Can Sometimes Improve Market Outcomes Principle #8: A country's standard of living depends on its ability to produce goods and services. Principle #9: Prices rise when the government prints too much money. Principle #10: Society faces a short-run tradeoff between inflation and unemployment.
In the Solow model in which y=Akα (where y is GDP per worker and k is capital per worker), compare the poverty trap model to the incentives model. Discuss whether the following statements are true or false in each model, using graphs and equations to explain and prove your conclusions:a. There exists some level of aid sufficient to get any poor country out of povertyb. There exists some threshold above which aid can be discontinued.c. A country’s long-run per capita income depends on where its per capita income is now.d. When the country is open to capital flows in or out, the main determinant of development is government policies and institutions e. Two pieces of evidence support the existence of poverty traps: (1) Growth of poor countries is slower than that of richer countries, and (2) Growth accelerates when a poor country exits poverty (explain why the poverty trap model predicts (1) and (2) and whether these predictions are confirmed by the data).
Which of the following statements is most accurate? a) CEO wages and compensation have flattened since the 1970 s. b) The U.S economy is doing poorly (the U.S. is no longer the wealthiest country in the world). c)The U.S (like all capitalist countries) has a totally unregulated, free-market system. d)The wages of the typical U.S worker have continued to rise (in both actual dollars and those adjusted for inflation) since the late 1970 s. e)Having a large middle class is good for a country because the middle class keeps the economy going (the middle class are a country's major consumers). Do fast don't use chatgpt answer urgent
Question 3 How does the Specific-Factors model discussed in this chapter differ from the Ricardian model we covered in Chapter 2? The Ricardian model assumes labor is the only factor of production, while the Specific-Factor model assumes labor, land, and capital are all factors of production. The Factor-Specific model assumes constant opportunity cost, while the Ricardian model does not. O The Specific-Factor model contends that trade generates gains for some factors and losses for others. On the other hand, the Ricardian model assumes trade generated gains for all workers. O The PPF in the Specific-Factors model is bowed outwards, while in the Ricardian model it is a straight line. The Ricardian model assumes movement across workers, while the Specific-Factors model does not.
e. The non-economic effects of unemployment include the loss of skills and self-respect, family disintegration, poor morale and sociopolitical unrest driven by idleness. increased rates of physical and mental illness as well as death (by suicide, homicide, heart attacks, and strokes). increased poverty, heightened racial and ethnic tensions, and reduced hope for material advancement that can lead to rapid and sometimes violent social and political change. all of the effects listed here can be linked to various levels of unemployment in a society.

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