Cyclical Forms

Question 1

Deliverable Length: 400–600 words

Why do you think that inflation is so low in the U.S. economy at this time?Explain how monetary policy and actions by the Federal Reserve influence national economic goals of achieving full employment, controlling inflation, sustaining adequate growth, and achieving a stable balance-of-payments position.Which of these national economic goals have recent actions by the Federal Reserve addressed?In your opinion, have they been successful in achieving a balance?

Question 2

Draw and explain the Lorenz Curve and the Gini Coefficient.

Why do we use the median wage instead of the mean (average) wage?

What is the significance of the After Tax Gini Coefficient being lower than the Total Gini Coefficient?

What is the effect of higher educational levels on income inequality?

Explain the returns to education ratio and the returns to experience ratio.

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