Please discuss the following questions   A) Structural Unemployment in Eastern GermanyThis EIA looks at the unemployment rate in Eastern Germany following the reunification of East and West Germany after the fall of the Berlin wall.1. What type of unemployment did East Germany experience after unification, and why? 2. What caused wage rates in eastern Germany to remain relatively high despite lower worker productivity?

B) Israel’s Experience with Inflation

This EIA presents the example of inflation in Israel in the mid-1980s.

1. What is meant by the term “clean” inflation?2. Give an example of each of the types of inflation costs during Israel’smid-1980s inflation.

Prepare a 2-3 page analysis by answering the questions below. Be sure to cite your references using APA format.

Assume that the Bank of Ecoville has the following balance sheet and the Fed has a 10% reserve requirement in place:

Required:

Now assume that the Fed lowers the reserve requirement to 8%.

1. What is the maximum amount of new loans that this bank can make?
2. Assume that the bank makes these loans. What will the new balance sheet look like?
3. By how much has the money supply increased or decreased?
4. If the money multiplier is 5, how much money will ultimately be created by this event?
5. If the Fed wanted to implement a contractionary monetary policy using reserve requirement, how would that work?

Deliverables:

Address the questions above, showing your calculations.  Develop your analysis in Microsoft Excel format. Enter non-numerical responses in the same worksheet using textboxes.