Week 4 questions
A) What is inflation? Research and present the annual inflation rates in the U.S. for the years 2011 – 2016.
B) Predict the trend for inflation over the next five years and explain your reasoning.
C) What is deflation? Who are the winners and losers when it occurs?
D) Say the country was suffering from hyperinflation and you were in charge of reducing it to a normal rate. Outline a plan for doing so.
A) What is the Consumer Price Index and how is it measured?
B) What are the limitations on what the Index can tell us?
C) Suppose you decided to develop a way to measure the value of increases in the quality of products. How would it work?
A) What is the marginal propensity to consume? Say you were hired to create three economic incentives that would cause it to increase. What would they be?
B) What is the marginal propensity to save? If hired to create three economic incentives that would cause it to increase, what would they be?
If the Trump administration wanted to increase exports, what combination of economic measures and policies would most effectively accomplish this?