In our previous post, we documented the changes in the “big three” macroeconomic variables—the unemployment rate, the inflation rate, and the real GDP growth rate—in Australia, Canada, the U.K., and the U.S. at the beginning of the COVID-19 pandemic. But macroeconomics is more than simply measuring variables. In this post, we use the AS-AD model to … Continue reading Putting the Macro Pieces Together
Author: Robin Bade
COVID-19 and Macro-3
You’ve probably heard that the COVID-19 pandemic is “bad for the economy,” but what does that claim mean? In this blog post, we review the “big three” macroeconomic variables and show the effects of the global pandemic on them in Australia, Canada, the U.K., and the U.S. Are we in a recession? A recession is … Continue reading COVID-19 and Macro-3
The Biden-Harris Minimum Wage Hike
Now a few weeks past its inauguration, let’s examine a substantial market intervention promised by the Biden-Harris administration: An increase in the federal minimum wage from $7.25 an hour to $15.00 an hour by June 2025. What is a minimum wage? A government regulation that makes it illegal to hire labor services at a wage … Continue reading The Biden-Harris Minimum Wage Hike
A COVID Tradeoff
Everyone you talk to or hear from has an opinion about how lenient or stringent public restrictions should be in the time of COVID-19. The decisions governments make about restricting and punishing social activity are decisions like any other—and decisions come with tradeoffs. What is a tradeoff? A tradeoff is an exchange—giving up one thing … Continue reading A COVID Tradeoff
Pandemic Athleisure Boom
The pandemic is changing our clothing choices. Read this CNN news article to learn about the athleisure boom and then answer the following questions.
NYC Restaurants to Expand Outdoors
New York City has decreased indoor restaurant capacity but is allowing restaurants to expand outdoors. Restaurants are moving tables onto the sidewalks and into curbside parking spaces. Read this NPR news article to learn about New York City’s new dining spaces and then answer the following questions.
COVID-19 Hits UNC Chapel Hill
After one week of in-person classes at the University of North Carolina Chapel Hill, the university reported 130 cases of COVID-19 and moved to online classes. Read this USA Today news article to learn about online learning at UNC Chapel Hill and then answer the following questions.
COVID-19 Vaccines in Development
Governments are pouring billions of dollars into the development and production of COVID-19 vaccines. Three pharmaceutical companies are making headlines: Moderna, Pfizer and Novavax. Read this CNN news article to learn about them and then answer the following questions. Instructors using the Bade or Parkin texts can assign these questions and an essay in MyLab … Continue reading COVID-19 Vaccines in Development
COVID-19 Vaccines and What Economists Think
Any first-year economics student will tell you that economics can get hard. And the truth is: They’re right. In fact, the brightest and best-trained economists sometimes don’t agree about complex issues. The Initiative on Global Markets is a research centre located at the University of Chicago that routinely polls leading economists about issues relevant to … Continue reading COVID-19 Vaccines and What Economists Think
Walmart Canada Plan New Fees
Suppliers ‘absolutely furious’ at Walmart Canada. Questions Why does Walmart think that charging its suppliers a fee is “a reasonable trade-off”? Why could the market in which Walmart buys from its suppliers be considered a monopsony? If the market is a monopsony, does Walmart buy the efficient quantity from its suppliers? Explain. If the market … Continue reading Walmart Canada Plan New Fees