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Part 1: Assume that the country is in a period of high unemployment, interest rates are at almost zero, inflation is about 2% per year, and GDP growth is less than 2% per year. Suggest how fiscal and monetary policy can move those numbers to an acceptable level keeping inflation the same. What is the first action you would take as the president? As the chairman of the Fed? Why? What would be your subsequent steps? Make sure you include both the positive and negative effects of your actions, and include the trade-offs or opportunity costs. Include the following concepts in your discussion: Demand and supply of money Interest rates The Phillips curve Taxation Government spending Wages Costs of inflation The multiplier and the tax multiplier The idea of tax rebates to stimulate the economy Part 2: Assume that the country is in a budget deficit and carrying a very large debt. Discuss the dangers of a high debt to GDP ratio and a growing budget deficit. Would this affect any policy changes you discussed in Part 1?
If the demand curve is much more inelastic than the supply curve, then buyers will shoulder more of the burden of a tax placed on suppliers of a product.
From an economist standpoint, why might there be more research, development, and innovation occuring in oligopolistic market structure than in any other?
The Wall Street Journal discusses a trend among some large US Corporation to base the compensation of outside members of their boards of directors partly on the performance of the corporation.
air express an overnight mail carrier provides one flight per day from portland maine to hawaii. currently air express
A bridge over the Coosa River currently has no tolls and an average passage of 880 cars per day. State government wants to place a toll on the bridge with the objective of raising the most revenue
what are the potential consequences of a country having a large overall national or public debt? if you were in the
in 2-3 pages summarize the differences between tax financing and bond financing and thinking like an economist and not
Supply and Demand Concepts
The greater the number of different goods available in an economy, A) the less likely it is that a double coincidence of wants will exist, and the less likely it is that monetary exchange will develop B) the less likely it is that a double coincid..
the represents the potential outcomes of your first salary negotiation after graduation assuming this is a sequential
Government decreases current tax, while holding government spending in the present and future constant. (a) How does this effect aggregate output, employment and the real wage What is the multiplier and how does it differ from the government expen..
Economic incentives were at heart of westward expansion across North America in late 18th centuries, so let us apply some economic analysis to the condition.
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