Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Assume the following data for the economy of the United States:
• Inflation is at 4.5% and has been rising for the last 3 years from a low of 1.2%
• Unemployment is at 4.8% and has been falling for the last 6 years from a high of 7.8%.
• The GDP is at $15.36 trillion and has been growing at about 3% for 7 years.
Answer the following questions using the given data. Explain your answers in detail.
1. What problem is the economy facing?
2. Assume you are a governor on the Federal Reserve Board of Governors. What type of policy (easy money or tight money) would you recommend to fix the problem you identified in question 1?
3. What tool(s) would you recommend using to fix the problem you identify in question 1?
4. What could happen in the economy that might make the policy choice ineffective?
They found that getting larger was painful it involved a lot of new administrative infrastructure to get everything organized
Rent controls force landlords to price apartments below the equilibrium price level. An immediate effect is a shortage (excess demand) of apartments, because the quantity of apartments demanded is greater than the quantity supplied at the regulated p..
Jerry bought a house for $400,000 and made an $80,000 down payment. He obtained a 30-year loan for the remaining amount. Payments were made monthly. the nominal annual interest rate was 6% after 10 years (120 payments) he sold the house and paid the ..
Find a current article about one or more of the macro variables for a nation of your choosing, such as GDP, employment, inflation, or international trade.
explain increase in quantity of defense goods when there is an increase in marginal benefit.
Consider the following possible schemes for taxing a monopoly: A proportional tax on profits. Explain how each of these taxes would affect the monopolist's profit-maximizing output choice. Would the tax increase or decrease the deadweight loss from m..
at a time when demand for ready-to-eat cereal was stagnant a spokesperson for the cereal maker kelloggs was quoted as
Dairies make low-fat milk from full-cream milk. In the process of making low-fat milk, dairies produce cream, which in turn makes ice cream. In the market for low-fat milk, Provide three everyday examples to illustrate what we mean by choosing at the..
A company currently sells 60,000 units a month at $10 per unit. The marginal cost per unit is $6. The company is considering raising the price by 10% to $11. Your boss tells you that price cannot drop below $9 because you cannot earn enough profit t..
Consider an investor with preferences given by the utility function U = E(r) – 0.5Aσ2 and there are two portfolios with the following characteristics: Suppose that the investor has a level of risk aversion of A = 2. Which portfolio should the investo..
You own a fresh vegetable stand. Last week you decided to raise your carrot prices from 79 cents per bunch to 99 cents per bunch. Subsequently, you noticed that several of your regular customers were buying 2 bunches instead of their usual one. In fa..
Despite this finding, the government mandates that new cars have air bags, rather than taxing their use. Is this policy a contradiction.
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd