• Agriculture and farming is a cherished part of American identity and remains an important part of the American economy. In 2014, the agriculture, fishing, and forestry industries contributed more than $215 billion to U.S. GDP and supported almost 2 million workers. The health of America's farms and the agriculture industry, however, is tied directly to immigration. Farmers frequently worry about finding enough workers as few Americans seem willing to take on the most difficult and physical farm jobsparticularly thosiofdpiowefksdpo;wes;l harvesting fresh fruits and vegetables. Yet the H-2A visa, the only agricultural visa currently available to American farms, is too expensive and cumbersome to work for many U.S. growers. We explore this issueand the way it costs our economybelow.
• Entrepreneurship
• Entrepreneurship and business creation is fundamental to a healthy economy. Companies less than five years old create an average of 1.5 million new jobs for Americans each year. Immigrants in particular play an important role in creating jobs as they are more likely to start a new business than the rest of the population. Despite this, the United States lacks a startup visa to welcome immigrant entrepreneurs with a proven idea and solid investment. This results in many business owners struggling to stayat a cost to our economy and its workers.
• Jason Wiens and Chris Jackson, "The Importance of Young Firms for Economic Growth," September 13, 2015.Available online.
• Agriculture and farming is a cherished part of American identity and remains an important part of the American economy. In 2014, the agriculture, fishing, and forestry industries contributed more than $215 billion to U.S. GDP and supported almost 2 million workers. The health of America's farms and the agriculture industry, however, is tied directly to immigration. Farmers frequently worry about finding enough workers as few Americans seem willing to take on the most difficult and physical farm jobsparticularly those harvesting fresh fruits and vegetables. Yet the H-2A visa, the only agricultural visa currently available to American farms, is too expensive and cumbersome to work for many U.S. growers. We explore this issueand the way it costs our economybelow.
• Entrepreneurship
• Entrepreneurship and business creation is fundamental to a healthy economy. Companies less than five years old create an average of 1.5 million new jobs for Americans each year. Immigrants in particular play an important role in creating jobs as they are more likely to start a new business than the rest of the population. Despite this, the United States lacks a startup visa to welcome immigrant entrepreneurs with a proven idea and solid investment. This results in many business owners struggling to stayat a cost to our economy and its workers.
• Jason Wiens and Chris Jackson, "The Importance of Young Firms for Economic Growth," September 13, 2015.Available online.

Question 16.

1.Consider two economies that are identical, with the exception that one has a high marginal propensity to consume (MPC) and one has a low MPC. If the money supply is increased by the same amount in each economy, the high MPC economy will experience

2.Which of the following policy options would simultaneously increase interest rates and decrease output?

3.Suppose an economy is running a government budget deficit. Assume that C = c0 + c1(Y-T). Which one of the following will cause this deficit to become larger?

4.If the concentration rate is sophisticated in the US than in the UK, then_____________

5.Consider a small economy where the total population is 10,000. The size of the labor force is 8,000, while the number of people employed is 7,000. What is the unemployment rate in this economy?

6.Assume that C = c0 + c1(Y-T). Suppose that taxes increase and money supply increases in such a way that output is constant in equilibrium

7.) In 2000, the nominal GDP growth of a country was 8% and the real GDP growth was 4%. What was the rate of inflation for this country?

8.Suppose the United States has no exports. The only imports of the US are 200 Mercedes Benz cars worth US$50,000 each from Germany. Germany has no imports and only exports those 200 cars to the US. Neither the US nor Germany trade with any other countries or engage in any transactions with other countries. Which one of the following statements must be true?

9.Suppose that investment (I) in the goods market is not responsive to the interest rate (that is, I does not depend on the interest rate at all). Then

10.An increase in the money supply and a drop in consumer confidence will lead to