Business, 06.05.2020 04:46, harodkdc8463

Explain how the recognition that macroeconomic policymaking is an inexact science affects your recommended policy response to the following situations: a. Your estimate of the natural rate of unemployment is 5 percent, and the actual unemployment rate is 5.5 percent. If you recognize macroeconomic policymaking as an inexact science, you would interpret that the difference is: serious enough to require a policy change. not a measurement error, but not serious enough to warrant a policy change. due to a difference in unemployment expectations. due to a measurement error. b. Your estimate of the natural rate of unemployment is 5 percent, and the actual unemployment rate is 8 percent. Your understanding will be that: it is a measurement error. unemployment has risen above the natural rate. macroeconomics is an inexact science. people's expectations are unemployment are very high.

Answers: 1

Show answers

Other questions on the subject: Business

Business, 21.06.2019 19:20, GreenHerbz206

You manage an equity fund with an expected risk premium of 10% and a standard deviation of 14%. the rate on treasury bills is 6%. your client chooses to invest $60,000 of her portfolio in your equity fund and $40,000 in a t-bill money market fund. what is the expected return and standard deviation of return on your client’s portfolio?

Answers: 1

continue

Business, 22.06.2019 02:20, lovehelping1564

Neon light company of kansas city ships lamps and lighting appliances throughout the country. ms. neon has determined that through the establishment of local collection centers around the country, she can speed up the collection of payments by one and one-half days. furthermore, the cash management department of her bank has indicated to her that she can defer her payments on her accounts by one-half day without affecting suppliers. the bank has a remote disbursement center in florida. a. if neon light company has $2.90 million per day in collections and $1.18 million per day in disbursements, how many dollars will the cash management system free up?

Answers: 2

continue

Business, 22.06.2019 03:20, nakeytrag

The treasurer for pittsburgh iron works wishes to use financial futures to hedge her interest rate exposure. she will sell five treasury futures contracts at $139,000 per contract. it is july and the contracts must be closed out in december of this year. long-term interest rates are currently 7.30 percent. if they increase to 9.50 percent, assume the value of the contracts will go down by 20 percent. also if interest rates do increase by 2.2 percent, assume the firm will have additional interest expense on its business loans and other commitments of $149,000. this expense, of course, will be separate from the futures contracts. a. what will be the profit or loss on the futures contract if interest rates increase to 9.50 percent by december when the contract is closed out

Answers: 1

continue

Business, 22.06.2019 15:00, nando3024

Magic realm, inc., has developed a new fantasy board game. the company sold 15,000 games last year at a selling price of $20 per game. fixed expenses associated with the game total $182,000 per year, and variable expenses are $6 per game. production of the game is entrusted to a printing contractor. variable expenses consist mostly of payments to this contractor. required: 1-a. prepare a contribution format income statement for the game last year.1-b. compute the degree of operating leverage.2. management is confident that the company can sell 58,880 games next year (an increase of 12,880 games, or 28%, over last year). given this assumption: a. what is the expected percentage increase in net operating income for next year? b. what is the expected amount of net operating income for next year? (do not prepare an income statement; use the degree of operating leverage to compute your answer.)

Answers: 2

continue

Do you know the correct answer?

Explain how the recognition that macroeconomic policymaking is an inexact science affects your recom...