Keynesian income-expenditure model

Assignment Help Business Management
Reference no: EM131434105

1. Using the IS-LM model and assuming the central bank conducts monetary policy by directly setting the interest rate for liquid funds in short-term money market, explain the effect on the equilibrium level of aggregate income and the interest rate of the following:

(A) An expansionary fiscal policy.

(B) A restrictive monetary policy.

2. Explain how the equilibrium level of output and employment is determined in the Keynesian income-expenditure model (or multiplier model). Then explain how the model overcomes objections to a fiscal policy of a deficit-financed expansion in government spending to reduce any labour unemployment on the grounds of 'crowding out'.

Reference no: EM131434105

Questions Cloud

Calculate the firm accounting profit : a. Calculate the firm's accounting profit in this year. Show all steps in any calculations. b. Calculate the firm's economic profit in this year. Show all steps in any calculations.
Identify five different categories of application software : Create a PowerPoint presentation at least five slides in length identifying five different categories of application software. List a description of each type of software with advantages, disadvantages, and any security concerns for each.
Discussing at least two different types of operating systems : Write an essay using Microsoft Word identifying and discussing at least two different types of operating systems. Include the advantages, disadvantages, and security concerns of each type of operating system.
Determining the mayoral candidates : One of the proposals aroundby one of the mayoral candidates is to lower the city tax rate. Opponents argue that thispolicy would make the city's fiscal deficit even worse. People in favor argue that anincrease in deficits is not necessarily a cons..
Keynesian income-expenditure model : Explain how the equilibrium level of output and employment is determined in the Keynesian income-expenditure model (or multiplier model). Then explain how the model overcomes objections to a fiscal policy of a deficit-financed expansion in governm..
Keynesian income-expenditure model : Explain how the equilibrium level of output and employment is determined in the Keynesian income-expenditure model (or multiplier model). Then explain how the model overcomes objections to a fiscal policy of a deficit-financed expansion in governm..
Discussing at least two different types of operating systems : Write an essay using Microsoft Word identifying and discussing at least two different types of operating systems. Include the advantages, disadvantages, and security concerns of each type of operating system.
Banking system potentially lend : A bank has total checking deposits of $4 million, with total reserves of $500,000. If the reserve ratio 10%, how much can this bank lend? How much could the banking system potentially lend? Please show work
Calculate national saving-private saving and public saving : a. Calculate national saving, private saving, and public saving. b. Obtain the mathematical expression for the AD in this particular economy.

Reviews

Write a Review

Business Management Questions & Answers

  Check serial and parallel port

What do you is needed to check serial and parallel port?

  Integrated marketing solution

Integrated marketing solution

  What are organizational controls

What is organizational structure and what are organizational controls? What are the differences between strategic controls and financial controls? What is the importance of these differences?

  Identify the single most important economic principle

Thinking back on what you have learned in this course, identify the single most important economic principle learned and explain why it was more significant than any other principle or concept.

  Types of scheduling constraints

Based on the three types of scheduling constraints, describe which constraint is applicable to this situation.

  Discuss the growth as it pertains to risk

Discuss the growth as it pertains to risk based managed care (RBMC) and primary care case management (PCCM). Which do you prefer? You may use the Kaiser Family Foundation article or the textbook for reference

  Discuss the elements of organizational designs

Discuss the elements of organizational designs and how organizational design is linked to organizational behavior, communication, delegation, job satisfaction, and employee motivation. What have you experienced in the workplace?

  Evaluate merit of her claim

When MaryJo refuses to accede to her employer's wishes, she is fired. She files a claim with the EEOC, alleging that her employer failed to accommodate her religious beliefs. Evaluate the merit of her claim.

  How does uncertainty and risk effect insurance companies

How does uncertainty and risk effect insurance companies, businesses, and the employed and unemployed people of the country? What solution would you propose? Why? Provide a step- by-step plan for implementation of your proposal

  Returns on investment are distributed

A statistician wants to describe the way returns on investment are distributed. The mean return = 10%. The standard deviation of the return = 3%. The histogram is bell - shaped. How can the statistician use the mean and the standard deviation to d..

  Create a supplier performance improvement plan

Create a supplier performance improvement plan. Include the steps that need to be taken to identify the root cause, potential containment, and corrective action. You need to include how you will monitor compliance to corrective action and if the c..

  What role do metaphors play in helping people hold

What role do metaphors play in helping people hold the concept of Artificial Intelligence? Do you decide with the statement that the brain is a machine

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