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Mechanical Aspects of Conducting Fiscal and Monetary Policy
Briefly explain the tools that governments have to move the economy from either a recessionary or expansionary gap to the long run equilibrium level. what are some of the fiscal or monetary policy tools available to government and the Bank of Canada can undertake to get the economy back to full employment.Please use diagrams to illustrate your answer.What are the pros and cons of fiscal and monetary policy?
Based on your analysis, does conducting fiscal and monetary policy result in the same impacts on inflation or output levels?Be sure to talk about the tradeoffs (or lack thereof) that exists between inflation and output in the short and long run.
Now assume the Fed increase the money supply by 10% and volcity remains unchanged?
Identify which economic and political policies affect your firm and explain how they impact business decisions. Explain how does your firm use technology to strategic advantage.
Propylene is used to make plastic. The propylene industry is perfectly competitive and each producer has a long run total expenses function given through
Assume the rural wage is $1 each day. Urban modern sector employment can be obtained with .25 probability and pays $3 each day. The urban traditional sector pays forty cents each day.
Suppose the demand for a product is given by P = 40 - 4Q. Also, the supply is given by P = 10 + Q. A) What is the equilibrium price and quantity of the product B) What is the price elasticity of demand at the equilibrium price For the next 3 quest..
Discuss why the same types of problems may exist in government as well, where elected officials are the agents and voters are the principals.
show nominal GDP and an appropriate price index for a group of selected years. Compute real GDP, and indicate in each calculation whether you are inflating or deflating the nominal GDP data. Instructions: Round your answers to two decimal places.
If there is an increase in the government budget deficit _______. the demand for loanable funds will increase, interest rates will increase, and the amount of borrowing will increase, the demand for loanable funds will decrease, interest rates will d..
Balance sheet: equipment = 500, inventories 100, receivables70, payables = 50, debt = 300
Now, suppose that initially z=2 and the economy is in the steady state you calculated in part a. . Then suppose that z falls to 1.8 permanently. What is the new steady state? Determine capital per worker znd output per worker in each of the first ..
Suppose there are two firms in a market who each simultaneously choose a quantity. Firm 1's quantity is q1, and firm 2's quantity is q2. Therefore the market quantity is Q = q1 + q2. The market demand curve is given by P = 60 - 4Q. Also, each ..
Suppose that natural real GDP is constant. For every 1 percent increase in the rate of inflation above its expected level, firms are willing to increase real GDP by 2 percent. Draw the new short-run Phillips Curve.
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