Macroeconomics Assignment | Homework For You
1. a) If a dollar is always worth a dollar, why do people say the dollar has ‘lost its value’?
b) Explain the real rate and nominal rate of interest? Which is more relevant?
2. a) People sometimes use the following saying to define recessions and depressions: ‘A recession is when your neighbours lose their jobs; a depression is when you lose your job’. What are some of the observations that make people call an economic downturn a depression rather than a recession?
b) Why might people who lived through the Great Depression have a different propensity to save than people who only remember the recent economic expansion?
3. The demand for vans in a certain country is given by:
D = 12 300 − 240P
where P is the price of a van. Supply by domestic van producers is:
S = 6700 + 60P. Get Economics homework help today