Consider the economic data for country aunemployment level

Assignment Help Macroeconomics
Reference no: EM13371531

Consider the economic data for Country A:

  • Unemployment level of 15%
  • Natural Rate of Unemployment is 6%.
  • Required Reserves is 25%
  • C = 50 + 0.75Y; I = 600; G = 250 
  • (note: T = 200 for purpose of this assignment assume Y = Yd)
  • Equilibrium GDP = Y = C + I + G
  • The full employment level of Real GDP is 4,000.
  • MS = 425
  • MD = 400 - 500r + 0.75Y
  1. Using the Business Cycle Diagram, show this economy.  Label:
    1. The current year as Year A
    2. Full employment level of Real GDP
    3. The current level of Real GDP
    4. The recessionary or inflationary gap
    5. Natural Rate of Unemployment
  2. Use Aggregate Demand and Aggregate Supply to show this economy.
  3. Suggest and show the results of a Fiscal Policy action that will bring this economy to full employment level of Real GDP.  Explain the effect on the fiscal budget and show the effect on the Money Market and the Investment Market.
  4. Suggest, and show, a Monetary Policy action that would restore the original equilibrium level of interest.  Also show the result of this Monetary Policy action on the Investment Market and the Goods and Services (AS/AD) Market.

Reference no: EM13371531

Questions Cloud

1 middle managers are often at the center of efforts to : 1. middle managers are often at the center of efforts to develop tactical plans to implement established strategies.how
A make or buy analysisfigi fabricating company is reviewing : a make or buy analysisfigi fabricating company is reviewing the economic feasibility of manufacturing a part that it
11 households make four kinds of economic decisions suppose : 1.1 households make four kinds of economic decisions. suppose you have two households with the same income. household a
Case problem a make-or-buy analysismanagers at wager : case problem a make-or-buy analysismanagers at wager fabricating company are reviewing the economic feasibility of
Consider the economic data for country aunemployment level : consider the economic data for country aunemployment level of 15natural rate of unemployment is 6.required reserves is
Write a cc program to prepare the weighted scoring model : write a cc program to prepare the weighted scoring model. final grades are based on three exams worth 15 20 and 25
The following question requires complete understanding of : the following question requires complete understanding of interactions between production and profit maximization. be
1 describe the differences between our specifications of : 1. describe the differences between our specifications of the sorted list adt and the binary search tree adt. 2. write
Part a1describe three 3 ways we can use macroeconomic : part a1.describe three 3 ways we can use macroeconomic analysis with one 1 original example for each way.2.you are

Reviews

Write a Review

Macroeconomics Questions & Answers

  Elucidate why does the fed like to fight inflation

Elucidate why does the Fed like to fight inflation in our economy and is inflation a concern right now given our current economic situation.

  Computation of best production schedule

Taiwan Electronics produces 3 models of the CB radios, A, B, and C-Employ the transportation model to find out the best production schedule.

  Calculate the profit-maximizing activity level

Dot.com Products, offers storage containers for fine china on the Internet. The corporation is the low-cost retailer of these quilted boxes with fixed costs of $480,000 a year,

  What are the causes of market concentration

(a) What is market concentration and how can you know whether a market is concentrated or not (b) What are the causes of market concentration (c) Are business mergers good or bad for the economy Explain why

  Which statement is not true regarding risk

Which statement is not true regarding risk?  the expected return is usually not the same as the actual return a key to assess risk is determining how much risk an investment adds to a portfolio some risks can not be decreased or mitigated by the fina..

  What disagreements did keynes have with classical economists

What did classical economists assume about the flexibility of prices, wages, and interest rates What did this assumption imply about the self-correcting tendencies in an economy in recession

  What is the relationship between duration and the amount of

Maximum Pension Fund is attempting to balance one of the bond portfolios under its management. The fund has identified three bonds that have five year maturities and trade at a yield to maturity of 9 percent

  Supply and demand for toyotas

Explain in a couple of well written sentences which industry in the U.S. would benefit in the short run from putting a tariff on all Japanese autos,

  What is moorea expected level of consumption

Moorea spends all of her income on Mochi Frozen Yogurt which costs $1 per cup. She makes $400 per month but lives in a bad neighborhood and is robbed of half her money 20% of the time. Assume YN and YR represent her consumption of yogurt in cups i..

  Fiscal policy also which factors limit its effect

Elucidate the fiscal policy also which factors limit its effect.

  Comparative static analysis

Mr. Capon is a butcher who recently increased price of steak at his market from $1:50 pound to $2 a pound. Correspondingly his sales dropped from 200 pounds a day to 100 pounds a day.

  Describe the implications of this economic forecast

Describe the implications of this economic forecast and the income elasticity of demand for the pricing strategy.

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