64 525
Assignments Done
99,3%
Successfully Done
In September 2018

Answer to Question #46635 in Macroeconomics for Coleine

Question #46635
1.Assume an economy with deteriorating employment and incomes, collapsing home prices, and business retrenchment. Is this enough information to officially declare a recession? What informal assessment of the economy would you make?

2.How might the official employment statistics of the STATIN be a misleading picture of the overall health of the economy?

3.Identify the following individuals as either "better off", "worse off" or "no different" from unanticipated inflation.
a)Creditors who make variable interest rate mortgages that are tied to the Consumer Price Index
b)Creditors who make fixed interest rate loans
c)Homeowners who pay fixed interest rate mortgages
d)Landlords who receive rent in multi-year contracts
Expert's answer
1. The fact that an economy functionate with deteriorating employment and incomes, collapsing home prices, and business retrenchment, this is enough information to officially declare a recession.
2. Some indicators cannot show the real picture of the economy, and some of them show only the part of the total situation or the situation in some industry, so the official employment statistics of the STATIN be a misleading picture of the overall health of the economy.
3.Identify the following individuals as either "better off", "worse off" or "no different" from unanticipated inflation.
a)Creditors who make variable interest rate mortgages that are tied to the Consumer Price Index are better off.
b)Creditors who make fixed interest rate loans are worse off.
c)Homeowners who pay fixed interest rate mortgages are worse off. 
d)Landlords who receive rent in multi-year contracts are no different.

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be first!

Leave a comment

Ask Your question

Submit
Privacy policy Terms and Conditions