,Help me answer the following attachments.
What is the current GDP growth rate for the U.S.? Examine the trend over the past few years. What trends interest you? What stage of the Business Cycle would the U.S. economy be in currently given the trends? Why might GDP not be considered an accurate measure of economic well-being of a country? Identify at least three limitations of GDP as a measure of economic well-being.
(b) (3 points) You have identified some specific external threats and opportunities. The following list summarizes some of the key challenges: Existing and potential customer challenges Facing new challenges: longevity risk and changing traditional family patterns and needs. . High-tech challenges Artificial intelligence and technological advances in insurance (InsuranceTech) are on the horizon. Big data and predictive modeling are opportunities, but new regulations about individual privacy rights are unknown. . Financial challenges Internationally, long-term interest rates are low by historical standards. New internationally-enforced capital regulations are in effect as a result of the 2008 financial crisis. Competitive challenges Intense international competition from online insurance companies. . Other challenges Environmental climate changes and their impact on investments. The long-term sustainability of social governmental programs. Demographic changes and migration patterns are unknown. The CRO proposes that you use the PESTEL method to perform a preliminary strategic risk identification analysis. (i) Describe advantages and disadvantages of the PESTEL method for XYZ. (1i) Identify, using the PESTEL method, the strategic risks that XYZ may face. (iii) Propose an alternative risk identification method that may improve XYZ's assessment. Justify your response.Let X and Y be two random variables such that the following expectations, variances and correlations are given E(Y) = 4, E(Y2) = 16, V(X) = 6, p(X, Y) = -= Find V(X + Y) and the covariance given by cov ( X, Y) . O V(X + Y) = 0, cov(X, Y) = -- O V( X + Y) = 6, cov(X, Y) = 0 V ( X + Y) = 2 - V3, cov(X, Y) = -3 O V ( X + Y) = 3 - V2, cov (X, Y) = -V2 O V(X + Y) = 6, cov(X, Y) = -3QUESTONS 1. Current employment at Firm Q is 100. Suppose the firm can sell its product for $100. Suppose the market wage faced by the firm is $20. a) What is L', Le., the profit-maximizing demand for labor at Firm Q? b) Is the firm currently at its profit-maximizing level of labor? If not, does it need to increase or decrease employment? c] What is the MPL at the profit-maximizing level of labor? d) What is the firm's marginal revenue product? (Hint: see the NB under equation 7 above!) Does this equal the money wage? e) What is Y* (profit-maximizing output) for the firm, Le., how much output will the firm produce given its profit-maximizing level of labor? (Hint: just plug in your answer from part a into the production function given in 10.) 2. Now, assume everything remains the same as in question 1 except the money (market) wage faced by the firm doubles to $40. a) Without working out the math (!), what do you think will happen to the firm's profit-maximizing demand for labor? (Hint: what happens to the real wage in this case?) b) Now.. work out the math! What is the firm's new profit-maximizing demand for labor (L*]? c) In other words, compared to the level of employment it hired in question 1, the firm should _its demand for labor. d) Will the MPL at the new profit-maximizing level of labor be greater than or less than the original (question 1) profit-maximizing level of labor? (Hint: see slide #21.) e) What is the new profit-maximizing output level for the firm (Y*)? 3. Assume the exact same set-up as in question 1 above save one change. Assume that the money (market) wage (W) increases by 10%. al What must happen to ensure that the profit-maximizing level of labor employed by Firm Q remains exactly the same as it did in question 17 Be specific. (Hint: see slide #33.) b) What would happen if the price level rises by only 5%, while the money wage rises by 10%%? More specifically, will the firm hire more/less labor than its original profit-maximizing level in question 1? 4. Assume that money wages in an economy remain constant, but the price level begins to decline. As a result, the of labor will increase because (given the assumption) the real wage is At the same time, the for labor will because the real wage is . As a result, there will now be a in the labor market at the existing money wage rate. Given this, the Classicals assumed that the money wage would until the original real wage was restored. (Hint: see slide #34.)1. Suppose there are two types of persons: high ability and low ability. A specific training costs 25t for a high ability person and it costs 50t for a low ability person. Firms wish to use this training as a screening device where they intend to pay $250 thousand to workers with training and $75 thousand to those without training. The outside option of a high ability worker is $100 thousand and the outside option of a low ability worker is 0. In what range must $t be to keep the high ability workers in high paying jobs, low ability workers in low paying jobs
