Grantham ECN206 2023 January Assignments Latest (Full)

ECN206 Macroeconomics

Week 1 Assignment  

Absolute and Comparative Advantage

Use the table below to answer the questions concerning absolute and comparative advantages.

Lumber                                 Automobiles

United States                                                     8                             8

Canada                                                                 4                             2

 1.     Which country has an absolute advantage in producing lumber?

2.     Which country has an absolute advantage in producing automobiles?

3.     Which country has a comparative advantage, if any, in producing lumber?

4.     Which country has a comparative advantage, if any, in producing automobiles?

5.     Should the U.S. trade with Canada? If so, what should be imported and what should be exported?

6.     Should Canada trade with the U.S.? If so, what should be imported and what should be exported?

 

 

 

 

ECN206 Macroeconomics

Week 2 Assignment  

Demand and Supply Exercises

Directions: Fill in the boxes (QD, QS, D, S, P, Q) in the next three demand and supply exercises. Based upon the event, what can we expect to occur for the market? Use a “0” (zero) if nothing will occur for that particular variable, a “+” (plus) if an increase, or a “-“ (negative) if a reduction. QD stands for Quantity Demanded, QS for Quantity Supplied, D for Demand, S for Supply, P for Price, and Q for Quantity.

Click here for the editable version of this assignment.

Problem 1                           QD         QS          D             S              P             Q

Problem 2                           QD          QS          D             S              P             Q

Problem 3                           QD          QS          D             S              P             Q

                                                                               

ECN206 Macroeconomics

Week 3 Assignment  

The Importance of Competition

After reading chapters 5 and 6 and Special Topic 5, write a 2-page paper describing the importance of competition in markets.  How does a lack of competition affect prices and output?  Describe what the role of government is in markets vis-a-vis firms in the market.

 

ECN206 Macroeconomics

Week 4 Assignment  

Gross Domestic Product

Title: Grantham Copyright - Description: Grantham Copyright 2018Use the data chart to answer the questions below.

Consumption                                                                     $500

Government Expenditures                                            $200

GNP                                                                                       $800

Gross Private Domestic Investment                          $100

Imports                                                                                $100

Exports                                                                                 $50

Questions:

1.    Using the data above, GDP is equal to __________________.

2.    Using the data above, Net Exports is equal to _____________.

3.    Using the data above, PCE (Personal Consumption Expenditure) is equal to _____________.

4.    If the dollar amounts of the items above are the nominal amounts in year 2017, and the quantities of units are identical in years 2010 and 2017, but prices in 2010 were 20% less than 2017, Real GDP in 2017 using 2010 as the base year is equal to _______________.

 

ECN206 Macroeconomics

Week 5 Assignment  

Economic Cycle Curves

Construct the AD, SRAS, and LRAS curves for an economy experiencing (a) full employment, (b) an economic boom, and (c) a recession.  What will happen in each case if it's only temporary?  What will happen in each case if it's permanent?

 

ECN206 Macroeconomics

Week 6 Assignment  

The Importance of Competition

After reading chapters 11, 12, and Special Topic 4, write a 2-page paper describing the economic viewpoints and theories of John Maynard Keynes.  What were his views of the causes recessions and solutions to fixing them?  In his view, what place did government have to improve markets?  What does the concept of "crowding out" mean in all of this?

 

ECN206 Macroeconomics

Week 7 Assignment  

Federal Reserve & Open Market Operations

If the Fed shifts to a more restrictive monetary policy, and it utilizes the open market operations tool, describe what will happen to each of the following:

1.    the reserves available to banks

2.    real interest rates

3.    household spending on consumer durables

4.    the exchange rate value of the dollar

5.    net exports

6.    the prices of stocks

7.    real GDP

 

ECN206 Macroeconomics

Week 8 Assignment  

Effects of Free Trade and Restrictions

Use the graph below to answer the following questions:

https://content.grantham.edu/academics/GU_ECN206/W8Assignment_files/image002.png

The graph above shows the demand and supply of wrenches for the country of Spain.

1.    If trade is avoided, Spain consumes _____ wrenches at a price of _____ per wrench.

2.    With free trade, for a world price of $4 per wrench, Spain is producing _____wrenches.

3.    With free trade, for a world price of $4 per wrench, Spain is consuming _______ wrenches.

4.    With free trade, for a world price of $4 per wrench, Spain is importing _________wrenches.

5.    If the world price is $4 per wrench, and the government of Spain imposes a tariff of $2, Spain produces ____________ and imports __________wrenches.

6.     If the world price is $4 per wrench, and the government of Spain imposes a tariff of $2, how much tariff revenue will the Spain’s government collect?  _____