econ final options

econ final options - Applied macroeconomic topics: Since...

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Applied macroeconomic topics: Since your final exam will include current events, here are the topics that you should read up on and have an opinion about. 1- What has happened to the exchange rate of the dollar this past semester? Do you view this as positive or negative? Explain your position 2010 - The dollar rose 17% against the euro (January 1-June 10) due to the weakness of the EU's economy. It dropped a bit by August. The U.S. dollar is most easily measured by its exchange rate, which compares its value to other currencies. Currency exchange rates allow you to determine how much of one currency you can exchange for another. Exchange rates change every day. Example, the dollar's exchange rate tells you how much a dollar is worth in a foreign currency, and vice versa. Most exchange rates are determined by the foreign exchange market. .S. Dollar has dropped about 9 percent against other major currencies. Yesterday, it hit a new low against the euro, and its value has dropped more than 40 percent against the European currency since 2002. One dollar is now worth only about three-quarters of a single euro. Economists say the decrease is due in part to two big deficits in the U.S. First, there's the U.S. budget deficit, the amount the federal government had to borrow to cover its spending: $413 billion for the past fiscal year. unless the Fed is willing to really, really raise interest rates, we're going to see these movements. And we don't know what the effects will be; we don't often see a large country borrowing stuff so much. We don't often go through these big gyrations in the dollar. And I would liken it to diving off a cliff into water, and we did it in the 1980's, it was high tide, we were okay.
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2- What has happened to the unemployment rate and the number of jobs created/lost this past semester? What is your interpretation of this statistical data? The unemployment rate in the United States was last reported at 9.80 percent in November of 2010. Private-sector employers added 67,000 jobs on a seasonally adjusted basis.( Professional and business services added 20,000 jobs, Education and health services, which have held up better than any other sector, added 45,000 over the month, Temporary-help services added 16,800 jobs in August, after a flat July, Education and health services, which have held up better than any other sector, added 45,000 over the month. )Non-farm payroll employment changed little (-54,000) in August, therefore I can guess that 54,000 people lost the non-farm jobs. Top Federal Reserve officials expect the
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This note was uploaded on 02/06/2011 for the course ECON 122 taught by Professor Mari during the Spring '09 term at Acadia.

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econ final options - Applied macroeconomic topics: Since...

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