Correlation and Regression

A country with a high GDP decides to invest significantly in improving its educational infrastructure and teacher training programs. What is the most likely long-term economic effect of this policy?

If a country experiences a surge in technological innovation, how would this likely affect its aggregate supply curve?

Which of the following scenarios would be most likely to cause stagflation in an economy?

A country removes tariffs and quotas on imported goods to foster free trade. What is a likely short-term consequence of this policy change?

If a central bank decides to increase the reserve requirement ratio for commercial banks, what effect would this likely have on the money supply and lending activity?

What is the primary goal of contractionary fiscal policy, and which action exemplifies it?

Suppose a country is experiencing a recession. Which combination of fiscal and monetary policies would be most effective in stimulating economic activity?

If a country's unemployment rate is high and inflation is low, what type of policy would be most appropriate to improve its economic conditions?

How does an increase in government spending, financed by borrowing, potentially affect interest rates and private investment in the economy?

What role do automatic stabilizers play in moderating economic fluctuations?

How would a sudden and significant decrease in consumer confidence likely affect the aggregate demand curve?

If a country's central bank lowers its target inflation rate, what adjustments might it make to its monetary policy tools, and what would be the expected impact on the economy?

A country decides to peg its currency to a stronger foreign currency. What are potential benefits and risks associated with this decision?

In an open economy, how do changes in the exchange rate affect the trade balance, assuming the Marshall-Lerner condition holds?

What are the key differences between demand-pull and cost-push inflation, and what are their typical causes?

How might quantitative easing (QE) by a central bank influence borrowing costs and investment in the economy?

What are the potential effects of a large influx of foreign direct investment (FDI) on a developing country's economy?

How does an aging population structure impact a country's labor force participation rate and potential GDP?

What is the Laffer Curve, and what does it suggest about the relationship between tax rates and government revenue?

Assuming that the expectations-augmented Phillips curve is accurate, what is the short-run tradeoff between inflation and unemployment, and how does it change in the long run?