1)Why do all the currencies always depreciate against US Dollar in long term, irrespective of development level in the country?

2)Economics: What are some unsolved problems in macroeconomics?

3)How can the goods, labor, and money markets be explained in a macroeconomics context?

1)

1) Asset returns are high in US, capital enters US from other countries, so $ appreciates

2) Interest rates are high and bonds are secure in US..so money enters US, $ appreciates

3) US is highly developed in terms of industries, services, higher education, skill, innovations and technology. So, capital enters US from other countries, so $ appreciates

4) $ is the international reserve currency. All countries fix their reserves and currencies with respect to the $.So, capital enters US from other countries, so $ appreciates

2)

Macroeconomics involves the study of the entire economy. The way the limited resources are utilized by a whole economy in production of goods and services for consumption is analyzed in macroeconomics. The following are some of the unsolved problems in macroeconomics:

1. Enacting of a regulation that guides the conversion of value of goods to the market prices considering the labour used in the production process.

2. Finding out if an arrangement of goods in a sequence of consumption affect a consumer?s choice in terms of preference who has the ability to buy all the goods.

3. Finding out the causes of the higher real return to stocks in average as compared to the return to bonds.

4. Explicit explanation of the reasons behind the higher trade between regions in a particular state as compared to trade between regions in separate states.

3)

Goods market is a form of market in which the price and the quantity are decided by the demand and supply of goods in economy. The demand curve of goods is downward sloping from left to right. This means as the price of goods decreases the quantity demanded of goods and services increase and vice-versa. The supply curve of goods and services is upward sloping from left to right. This means as the price of goods increases, the suppliers are ready to sell more of the commodities and vice-versa. The point where the demand and supply curve intersects each other is where an equilibrium price and quantity are determined.

Labor market is a market where the wages and the amount of labor are determined. The demand curve of labor market is downward sloping from left to right. It means as the wages of labor decreases, more of the labors are demanded at lower price and vice-versa. The supply curve of labor market is upward sloping from left to right. It means as the price or the wages of labor decreases, laborers are willing to give less of their labor. The point where the demand and supply curve of labor market intersects give the equilibrium wage rate and quantity of labor in the economy.

Money market is a market where the demand and supply of money is determined by the interest rate and the quantity in the economy. The demand curve of money market is downward sloping from left to right. It means as the rate of interest increases, the amount of money demanded in the economy decreases and vice-versa. The supply curve is upward sloping. It means that as the rate of interest increases, the amount of quantity of money supplied also increases and vice-versa. The point where the demand and supply curve of money market intersects, gives the equilibrium interest rate and quantity of money in the economy.