Why was nominal GDP greater than real GDP in each of the quarters shown? Calculate the percentage change in nominal GDP and real GDP for the most recent 2 quarters?

Visit the Bureau of Economic Analysis Web site, www.bea.gov , and access the BEA interactively by selecting:
Under “Principal Federal Economic Indicators,” select “Gross Domestic Product” and then
Select the orange button, “Explore Product View”
Scroll down and select “Interactive Data, then GDP and the National Income and Product Account Historical Tables.”
Select “Section 1- Domestic Product and Income”
Use Tables 1.1.5 and 1.1.6 to report nominal GDP and real GDP for the past four quarters.
Answer the following questions using the data you find:
Submit quarterly data for nominal and real GDP for the last 4 quarters.
Why was nominal GDP greater than real GDP in each of the quarters shown?
Calculate the percentage change in nominal GDP and real GDP for the most recent 2 quarters? One quarter to the next.
Click the tab at the top “NIPA Tables,” select Table 1.1.1, click the modify button, select 2012 as the first year, select 2021 as last year, click on annual, then select Refresh Table. Calculate the average growth rate across the ten years selected. How does that growth rate compare to our long run average growth rate of about 3%?

What forecast for sales revenue in year 10 do you obtain using the results of part (a)?

This exam is open book. To receive partial credit, carefully show your work . There are six questions with a total of 140 points. You must turn in
the exam by 11:59pm Mar 6 and you should submit the solution via
Blackboard’s dedicated dropbox (Blackboard Assignment Link: “Week 8: Final
Exam .
1. Baby It’s You, a maker of baby foods, has found a high correlation between the
aggregate company sales and the number of births nationally the preceding
year. Suppose that the sales and the birth figures during the past eight years are
Year
1 2 3 4 5 6 7 8
Sales  6.1 6.4 8.3 8.8 5.1 9.2 7.3 12.5
US births 2.9 3.4 3.5 3.1 3.8 2.8 4.2 3.7
a. Determine a regression equation for predicting sales based on births. Use years 2 through 8 as your baseline.
b. Suppose that births are forecasted to be 3.3 million in year 9. What forecast for sales revenue in year 10 do you obtain using the results of part (a)?
2 The residents of IDS’s capital city deposit their refuse on the curbside at
the start of each working day. The amount of refuse placed at curbside at the start of each
day is an uncertain quantity whose probability distribution is given below
Refuse 15 20 25 30 35 40 45 50 55 60
Probability 0.025 0.075 0.15 0.2 0.175 0.15 0.1 0.075 0.025 0.025
The quantities of refuse produced on different days are all independent of one another.
Refuse is collected by crews. Each crew can collect 5 tons of refuse per eight hour
working day. Each crew consists of two members and each member receives $15/ hour.
Whatever refuse remains at the end of the work day must be collected that evening by a
special crew, called the Nighthawks who pick up the surplus at a price of $150/ton.
Determine the number of regular crews that minimizes the expected cost of garbage
collection and the resulting expected cost of garbage collection.

Critically evaluate both approaches sketched above.

Quantitative Easing Policy and the Financial Crisis
According to standard monetary theory, Quantitative Easing policy implemented after the financial crisis did not entail a credit explosion because the money multiplier has plummeted, as banks have decided to hold excess reserves. Yet, mainstream theory warns that the collapse of the multiplier is ‘temporary’ because in case banks decide to lend reserves massively there may be a burst of inflation.

On the other hand, critics of conventional wisdom hold that Quantitative Easing did not lead to a credit explosion and inflation burst because i) the money multiplier does not have any meaningful sense; and because ii) “the loan is not created out of reserves. And the loan is not created out of deposits: Loans create deposits, not the other way around” .
Question:
Critically evaluate both approaches sketched above.

How strongly does it display that characterization? Provide specific evidence here from the industry briefs to support your response and explain how it displays inelastic or elastic demand.

For this case study style assignment, you will review information about a given industry and produce a reasonably robust economic analysis from which you will respond to targeted questions. The target industry / market to be analyzed for this purpose is women’s yoga pants and other “athleisure” wear. To provide further focus, pay attention to the brand Lululemon which is referenced throughout, although you also need to analyze the market as a whole.
Question 1
Is the demand for yoga pants more inelastic or more elastic with respect to their price? How strongly does it display that characterization?
Provide specific evidence here from the industry briefs to support your response and explain how it displays inelastic or elastic demand.

 

Should Government Intervene in Classic Market Failure Facing Colleges as a result of the Pandemic?

Read the article that is attached to this document and also linked below and respond to the questions below with a 1-2 page essay, providing concise arguments for he merits of your position. BE SURE to include supporting market data for your position, if applicable.

Colleges Are Fueling the Pandemic in a Classic Market Failure: colleges face an existential crisis without the revenue from students on campus . Two economists argue that Government intervention would be helpful.

What do you think about this in general?

And, specifically, do you think University of Sasketchwan was right in closing the campus and offering remote classes only? If so, why?

https://urldefense.com/v3/__https://www.nytimes.com/2020/10/08/business/colleges-pandemic-market-failure.html?smid=em-share__;!!MLMg-p0Z!XdwiLXUBspOLNxSJC46MIZR-SWH1YpjnEGmZuNwFnl5UN-qPFpGJUQ8nPSwyy0c$

Do you think our University was right in closing the campus and offering remote classes only? If so, why?

Colleges Are Fueling the Pandemic in a Classic Market Failure. They face an existential crisis without the revenue from students on campus .

In the article below, two economists argue that Government intervention would be helpful. What do you think about this in general?

And, specifically, do you think our University was right in closing the campus and offering remote classes only? If so, why?

https://urldefense.com/v3/__https://www.nytimes.com/2020/10/08/business/colleges-pandemic-market-failure.html?smid=em-share__;!!MLMg-p0Z!XdwiLXUBspOLNxSJC46MIZR-SWH1YpjnEGmZuNwFnl5UN-qPFpGJUQ8nPSwyy0c$

Describe the distributional implications of the policy. Who gains and who loses? In your answer consider the economic incidence of the public intervention.

Choose an example of a government intervention into markets that you are familiar with. In this memo, you will be asked to describe the intervention and give arguments for and against the intervention.
You should address the following question in your memo:
1. In opposing the market intervention, start from the proposition that the market in
question meets the textbook definition of a competitive market. Explain why this
intervention is likely to be harmful under these assumptions .
2. In supporting the market intervention, you should use the economic rationale for
public intervention in the market. Give the best possible justification you can based on
the economics of the question, even if you don’t support the
intervention. You can also describe non-economic reasons why the policy is desirable,
but this cannot come instead of the economic rationale.
3. Describe the distributional implications of the policy. Who gains and who loses? In
your answer consider the economic incidence of the public intervention.

What aspects of inequality does it miss? How and why does income inequality vary across cities, state, or countries? Has income inequality in the US changed over time? How do governments and families affect economic inequality?

Students should post a short, relevant essay related to that week’s material: it should open with a thesis, briefly defend that article, and have a useful title. You may write an essay about anything related to this week’s material, so you do not need to respond one of my prompts. If your post does originate as an answer to one of my questions, write it as a standalone essay .

Is there a tradeoff between equity and efficiency? If so, what’s more important: equity or efficiency? How equitable and efficient is the US economy? Is the Gini coefficient a good measure of economic inequality?

What aspects of inequality does it miss? How and why does income inequality vary across cities, state, or countries? Has income inequality in the US changed over time? How do governments and families affect economic inequality? What are the costs or benefits to redistribution? What sorts of policies could redistribute the surplus and increase efficiency in the US?