416 Answered Questions for the topic macroeconomics

05/24/19

Consequences of a positive uncovered interest rate parity (UIP) spread for an emerging market economy?

Empirically we observe that the uncovered interest rate parity (UIP) does not hold; in fact the exchange rate adjusted return on an emerging market bond is higher than the return on US bonds; I... more
Macroeconomics Business Gdp

05/24/19

If a retailer consumes a good he bought from the producer, does that get accounted into the GDP of a nation?

Let's say we have a soft-drinks store. Say the store sells Pepsi and Coke. If the retailer drinks a bottle of coke from his own store, does that get counted into the GDP of a nation?Or is it only... more
Macroeconomics

05/14/19

What is economic development?

Macroeconomics

05/14/19

What is global macroeconomics?

How do you measure purchasing power?

Macroeconomics

05/13/19

Can a country survive and prosper without international trade or investment from overseas?

To what extent can a country be 100% independent from the rest of the world? Is there any country like that in the world? Maybe North Korea, but North Korea receives supports from China.

05/11/19

What is a Pareto Optimal Allocation and How do we use an Edgeworth box to Show it?

How can we use an edgeworth box to see if an allocation is Pareto Optimal? What doe Pareto optimal mean?

05/11/19

The Gains from forming a Free Trade Area or Customs Union Part 1

Suppose Two countries have identical demands for a product. Call it textiles. One is much better at producing Textiles. Suppose Demand is give as P = 40- (1/25) P The Supply Curve for... more

05/09/19

Full employment and Opportunity cost

If we are in a two country world and both countries are at full employment then they are on their respective production possibility frontier. Does that mean we are on the World Production... more
Macroeconomics Business Gdp Base Year

05/09/19

How do I change the base year of real GDP using the GDP deflator and nominal GDP?

I'll use the US as an example. I have three data series1. nominal GDP $(Y)$2. real GDP in 2005 USD $(\\bar{Y})$3. the GDP deflator $(d)$, with 2005 as the base year, so $d_{2005} = 100$I want to... more
Macroeconomics Business Finance Inflation

05/05/19

Can absence of inflation be accounted for by a reconfigured class structure?

A previous and oft-heard question asked why no inflation results from the Fed pumping money into the economy.Are we simply seeing a methodical wage suppression, thus no official "inflation," while... more
Macroeconomics Business Gdp Economic Growth

04/28/19

Ok to normalize GDP change by population change?

Does it make sense to normalize change in real GDP by the contemporaneous change in population? I'm interested in this calculation for the following reason. Suppose real GDP increases. I'd like to... more
Macroeconomics Business Gdp Economic Growth

04/25/19

What is a supply side shock in macroeconomics?

I was hoping someone could clarify what exactly is meant when someone refers to a country as having undergone a 'supply-side shock' and generally speaking when one is evaluating the health or... more

04/25/19

What possible reasons could make arbitrage impossible between some markets?

What could prevent arbitrage (not necessarily risk-free) between some markets even when price differences exist?
Macroeconomics Business Gdp

04/24/19

Are goods that are wasted counted into the GDP of a nation?

If *x* apples are produced in an economy, and only *x* - *y* are consumed (*y* apples get rotten at different stores in the country), is the value of these wasted apples considered as a part of GDP?

What is economic development consulting?

04/24/19

Does Inflation Make Money Eventually Worthless?

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