Critically possible short-run and long-run macroeconomic

Assignment Help Macroeconomics
Reference no: EM1326830

Relationship Between Public Debt and Interest Rates

On March 28th, 2006 the Fed increased its federal funds rate target from 4.50% to 4.75% for the 15th consecutive increase since late 2003. The primary objective of the Fed is to keep a balance between higher expected inflation and interest rates and their impact on sustained economic growth in the long run.

Briefly and critically describe possible short run and long run macroeconomic effects of this continuous increase of the federal fund rate target by the Fed in controlling inflation and money supply growth in the economy since 2003. The response to this question should be focused on the effects on unemployment, inflation, short term and long term yields on treasury securities, and economic growth.

Is this policy consistent with the discretionary monetary policy implications of Keynesian monetary theory? If so, how does it differ from the policy prescription of the monetarists under the similar economic situation that US economy is currently facing?

Reference no: EM1326830

Reviews

Write a Review

 

Macroeconomics Questions & Answers

  Characteristics of four types of markets

In the following list a number of well-known companies and the products that they sell. Which of the four types of markets (perfect competition, monopoly, monopolistic competition, and oligopoly)

   Problem on standard deviation

Problem on standard deviation

  Demand and supply curves before and after tax

Draw a graph describing the demand and supply curves before and after the tax. describe graphically the tax revenue and how it is shared between the consumers and suppliers (producers) of gasoline.

  Oligopoly market structure with stackelberg model

You are the manager of a firm in a new industry. You have gotten the jump on the only other producer in the market.

  Laws of supply and demand

D&Z Dry Foods Distributions specializes in the whole distribution of dry goods, such as rice and dry beans. The firm's manager is concerned about an article he read in the morning's Wall Street Journal

  Evaluate cross price elasticity of demand

What happens to his consumption of Y? Calculate the coefficient of price elasticity and of cross price elasticity. Also draw the demand curves for X and Y, noting the equilibrium points for this consumer before and after the price change in X.

  Examples of game theory

Two executives were arrested by authorities for embezzling money for their firm. Short of confusion the only had enough evidence to put them away for 10 Years.

  Computation of price level by cpi

Assume the government decides to pass a law that requires all businesses to delay all future layoffs, giving at least 3 months notice to any workers they plan to lay off.

  Demand and supply analysis from the given data

Plot both together on a supply-demand graph. Calculate the equilibrium P and Q, and show them on your graph as well. Also calculate CS (consumer surplus) at the equilibrium.

  Illustrate what do these numbers imply for the decision

Illustrate what do these numbers imply for the decision of when to open a shared facility versus two separate facilities.

  Graphing the short run philips curve

Suppose that natural real GDP is constant.  For every 1 percent increase in the rate of inflation above its expected level, firms are willing to increase real GDP by 2 percent.

  Economically interpret the regression results

Use Excel program to estimate of the state's demand for KBC microbrews in Ohio. Print (past) the computer regression output and provide an economic interpretation of the regression results.

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