What is the situation of the private sector in each period

Assignment Help Microeconomics
Reference no: EM132198923

Question: In 2009 country has a fiscal deficit of 4.2% of its GDP and it has a deficit in the external sector of 2.6% of its GDP. Next year, 2010, this country implements a fiscal rule of 2% and it has now a deficit in its external sector of 3.7%, what is the situation of the private sector in each period? Explain graphically, using the balance sheets framework, and in words whether this situation is sustainable. What does sustainable means? (Hint: Remember in class we saw that (S-I) Ξ (G-T) +CAB)

Reference no: EM132198923

Questions Cloud

What is the implied risk premium : Does uncovered interest parity hold in this example? If so, how do you know? If not, what is the implied risk premium? Which deposits pay a higher expected.
Demonstrate a function in scheme language : Write and fully demonstrate a function in "Scheme language" named super-duper, with this interface.
Write a function that takes two parameters : Write a function called findMedian that takes two parameters - an array of int and the size of the array.
Find all subgame nash equilibria of finitely repeated game : Find all of the game's pure-strategy Nash equilibria. Now suppose that the players play this game twice in a row. They observe what each other did in the first.
What is the situation of the private sector in each period : In 2009 country has a fiscal deficit of 4.2% of its GDP and it has a deficit in the external sector of 2.6% of its GDP.
Write a function called truncate : Write a function called truncate. It is passed 2 parameters, a float f and an integer d.
Is there an economic reason for this : Retailer companies sell many products for which manufacturers have a suggested retail price printed on the package.
Discuss what would be the given changes : Do you believe major changes in current orchard operations (in terms of horticulture and financial management) have to happen in order for apple operations.
Sustainable course in the next 25 years : Propose ways that you think the federal government should set the budget on a sustainable course in the next 25 years?

Reviews

Write a Review

 

Microeconomics Questions & Answers

  Managerial accounting-analysis of cvp

Suppose that MN Company is currently selling 300 units of Product SD per month. Management wants to increase sales and feels this can be done by cutting the selling price by $22 per unit and increasing the advertising budget by $20,000 per month. ..

  Presume that a monopolist charges

Presume that a monopolist charges (a uniform) price P = $24 and the price elasticity of demand is -6. We can conclude that its marginal cost should be:

  Discuss positive and negative aspect of deontological theory

Discuss the positive and negative aspects of deontological theory as it relates to another of the theories you have encountered in this course.

  Production and shipping costs

Declare your topic to the class by posting a new thread in the related DB forum and titling it with the key term you selected.

  What is the deadweight loss caused by joffrey policy

Consider the market for freshly hunted boars in Westeros. The rich people in Westeros collectively have demand for boars expressed by the equation Q = 500 - 10 P, What is the deadweight loss caused by Joffrey's policy

  What economic factors would affect a firm desire

What economic factors would affect a firm's desire to enter and exit a market? What are the market signals that would tell a firm that it is profitable.

  Labor hoarding-an increase in output may signal

Can anyone choose and explain that because of labor hoarding, an increase in output may signal:

  A watchmaking firm operating in a competitive market

Suppose you are the manager of a watchmaking firm operating in a competitive market. Your cost of production is given by.C=100+2q2

  How do effects of tariffs differ from effects of quotas

Who gains and who loses from a tariff? How do the effects of tariffs differ from the effects of quotas? If you were a small country, what would you rather utilize? 200 word answer

  Explain the widespread use of slavery

The industrialization period of the late 1800's saw several new forms of energy developed, including 1. more effective use of humans and animals to power machinery using treadmills.

  Demand curve affect the firm’s price?

Why is representative money more useful than commodity money. representative money has value because the government says it does or else.

  The elasticity of demand coefficient for a good is 4

If the elasticity of demand coefficient for a good is 4(in absolute term), we know: a: that for every 1%increase in quantity, there will be a 4% increase in price b: that for every 1% increase in quantity, there will be a 4% decrease in price c: that..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd