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Please provide your answer to the following question(s) using essay format. Essay format should include an introduction paragraph with a thesis statement, a body, and a conclusion paragraph. The essay should be 2 - 3 pages (750 to 1,000 words) and should include at least (2) academic resources, not including your textbook. Your reader/audience is the general public.
Be sure to carefully read each question to ensure that each component is answered with the appropriate depth and detail. Your answers should be free of spelling and grammar errors. When you use reference material, you must properly cite your sources by using in-text citations. You must also include a reference list. All documentation must be rendered in APA citation style (see announcements for details on APA).
Answer the following questions for your essay:
Suppose that the government increases taxes and government purchases by equal amounts. What happens to the interest rate and investment in response to this balanced-budget change? Does your answer depend on marginal propensity to consume.
Assume that the Current Account Balance is initially positive for one country. Assume that a permanent positive shock to production affects the country which initially had a positive current account balance.
Find a recent newspaper editorial on monetary policy, interest rates, or macroeconomics and give the title of the article, date, source and columnist name if applicable - what you think are the normative implications of the article.
Assume that the demand for autoworkers declines significantly due to a decrease in demand for new automobiles. Explain what will happen to unemployment using both classical and Keynesian reasoning.
Assume an economy is going through a Recession what type of Monetary Policy requires to be implemented through the Federal Reserve?
Consider the Boeing-Airbus game shown below. The numbers indicate the potential profit/ loss (€ billion) from developing a ‘mega-carrier’ passenger jet, depending on what the rival does.
Explain the government uses policies like student loans and free trade to influence the economy's growth rate.
Assume there are 3-firms with the same individual demand function. This function is Q = 1,000 - 40P. Assume each firm has a different cost function.
Suppose you are reviewing an isocost graph. The axis on the graph shows capital units on the vertical axis, and labor units on the horizontal axis.
Would you have been less likely or extra likely to borrow the money if they had known the true inflation rate? Who was hurt by the fact that the actual inflation was not equal to the expected inflation rate, the lender or the borrower?
Talk to a current economic situation happening within the foreign country referencing your Economist Article. What is the foreign exchange rate in comparison to the U.S.? What trade agreements, if any, is this a country a party of
Economists and policymakers argue in favor of replacing the current income tax in the USA with consumption tax. What are your opinions on the issue?
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