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Fiscal-Monetary Policies
(a) After 2008 the US Government sought the solution to the crisis. They consider between the Fiscal stimulus and the Monetary expansion. Use a positive-sloped LM and a negative-sloped is to show how Fiscal stimulus could expand the national output in one diagram and show how Monetary expansion could rescue the economy in another diagram. Explain in details how output could change from the initial equilibrium to the new equilibrium. What the assumptions we must have to ensure economic expansion are. (You can use the Money Market diagram and the Demand/production diagram to explain too)
(b) In the mid 2000s US economy was rapidly expanding due to the housing market boom. The Government considered between a reduction in budget deficit and Monetary contraction in order to cool down the economy. Use a positive-sloped LM and a negative-sloped IS to show how Fiscal contraction could decrease the national output in one diagram and show how Monetary contract.
q.as an analyst at the treasury department you have been asked to predict the behavior of key macroeconomic variables
If technological change shifts the long-run aggregate-supply curve to the right, it will also do which of the following?
Contractionary fiscal policy could consist of
The increasing of ageing population might lead to certain issues; the first one we need to face will be the public debt. Ageing population when they retired, the consumption exceeds income and investments will exceed Savings.
What is the main goal of policymakers in regards to the business cycle?
The short-run production function for a firm in the business of calculator assembly is given by q= 2√L where “q” is finished calculator output and “l” represents hours of labor input. Find the profit-maximizing level of labor. What is the short-run s..
[Monopoly] Consider the following monopolists that face nonlinear demand functions. (a) Suppose a monopolist faces a demand curve of Q= e^100-p, and has costs C(Q) = 4Q x In (Q). Solve for equilibrium quantity and price.
Evaluate the effect of each of these four changes on demand based on the estimates provided and what is the net effect of all the changes taken together
You decide to open a retirement account at your local bank that pays 8%/year/month (8% per year compounded monthly). For the next 20 years, you will deposit $500 per month into the account, with all deposits and withdrawals occurring at month’s end. ..
Using economic analysis and the guiding principles of sustainability, between the farmer subsidy solution and the principles of sustainability solution, justify which solution is best? Why?
Evaluate how their business environment is influenced by government economic policy which may be identified through your application of economic theory.
Applying a constant-effort model of harvesting to the Lotka–Volterra equations (1), Before doing any mathematical analysis, think about the situation intuitively. How do you think the populations will change if the prey alone is harvested? if the pr..
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