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Compare and contrast monetary and fiscal policy in the context of an economy experiencing a recessionary gap. What are the policy options of each and how does each policy work? What are the advantages and disadvantages of using either monetary or fiscal policy? After your general discussion, recommend a specific, detailed policy for addressing the current recessionary gap. Use an AD-AS diagram (draw and scan or create on your computer) to show the short run and long run effects of using the policy you chose.
Debt reduction vs. stimulus for economic recovery during a recession: What are your recommendations to the current administration considering the state of the economy and the level of national debt? What are the implications of your recommended course of action? Use an AD-AS model (draw and scan or create on your computer) to illustrate the effects of such a policy during a recession. Cite readings and/or presentations to support your comments.
Keynes vs. Hayek: What are their perspectives on the role of government in the economy? Whose theories do you think are more useful in the current economic situation? What implications does the theory you chose have for individuals, communities, and the aggregate economy? Cite readings and/or presentations to support your comments.
A firm produces according to the following production function: Q=k^.5L^.5 where q= units of output, k= units of capital, and L= units of labor. suppose that in the short run k=100. moreover, wage of labor is w=5 and price of the product is p=10. wha..
Illustrate what impact could this have on the level of production and therefore the unemployment rate.
Consider the situation of the concept of Green energy policy and conservation. What is the issue at hand and what are they hoping to do Explain. What are the anticipated benefits of using the electric cars and the new florescent light bulbs
Findout the number of hours of skilled labor also the number of hours of unskilled labor which minimized the price of doing the project.
The first step in comprising the value of this stock today, is to compute the value of the stock when it reaches constant growth in year.
Show whether each of the following statements is true or false, and explain why.
Sun City, Arizona, a retirement community that features full service living arrangements, is planning two proposals to provide lawn care to elderly residents.
Elucidate how each of the following changes would shift the aggregate demand curve.
In an effort to estimate the mean amount spent per customer for dinner at an Atlanta restaurant, data were collected for a sample of 42 customers. The data collected resulted in a sample mean of $29. Based upon past studies the population standard..
Assume the corporate income tax were eliminated and revenue lost was made up through rising the payroll tax rate on labor earnings.
A lottery claims its grand prize is $10 million, payable over 20 years at $500,000 per year. If the first payment is made immediately, what is this grand prize really worth? Use a discount rate of 6%.
Karen earns $75,000 in the current period and will earn $75,000 in the future. Assuming that these are the only two periods, and that banks in her country borrow and lend at an interest rate r = 0, draw her inter-temporal budget constraint.
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