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Consider a government uses an expansionary fiscal policy to get out of a recession. Use the IS/LM model and the IS-PC-MR model to illutrate what monetary policy to pursue.
Suppose an economy, in which technological capabilities become obsolete. Use the Solow-Swan model and the knowledge spillover model to illutrate how its productivity growth rate dependence on capital changes over time.
Suppose an economy with high innovative potential, but where saving is insufficient to fund innovative investments. Use Garrison's capital-based macroeconomics to illustrate how more funding to innovative investments and thereby higher sustainable growth can be obtained.
Consider home cost pricing prevails in international trade, while world output is declining. Consider two economies, A and B, both having floating exchange rates and the same monetary policy regime; the only difference being that the wage costs of economy A increase relative to those of economy B. How will the Mundell-Fleming model be used to illutrate what happens to the trade balance and output of these two economies.
Problem - Income Elasticity of Demand, Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5
Application of Nash Equilibrium and Game Theory with examples
Why might it be difficult for the Fed to formally adopt inflation targeting? Would inflation targeting be a good policy for the Fed in the present economic environment
Do the estimated coefficients have the required signs to yield a-shaped AVC curve? Discuss the significance using the p-values.
Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.
In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?
Question based on Laffer Curve : Tax Rate and Tax Revenue, Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?
Draw a correctly labeled loanable funds graph that shows what happens to real interest rates.
An essay on Market imperfection associated with negative externalities.
Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."
Problem based on Utility Function - Problem, Answer and explain the following using a diagram which is completely labeled.
Problem on standard deviation
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