Production possibility frontier to illustrate

Assignment Help Macroeconomics
Reference no: EM1313693

The Situation: Full employment income is estimated to be $11,000. The current interest rate is estimated to be 4.178 [irrcent. While last year total business investment spending was $900; the rising price of oil has caused expectations to deteriorate (see diagrammatic estimate). The year's federal budget is G=2000 and T=1000. The consumption function is estimated to be: C=500 + 0.75.YD. The Problem: Assessing the Results

Use a production possibility frontier to illustrate the probable results of your fiscal policy. By how much did consumption change? By how much did savings change? By how much did investment change? What is the total amount of government borrowing? Where did the money come from?

Reference no: EM1313693

Questions Cloud

Impact of banks behaviour : Suppose that because of the ongoing financial turmoil banks become more prudent: that is, other things equal, banks want to hold more excess reserves and make fewer loans.
What is speed of the block : A catcher stops a ball traveling at 28.0 m/s in a distance of 55.30 cm and feels a force of 313 N against his glove. What is the mass of the ball.
Evidence of the mean dimension : The dimension is supposed to be 224 mm and the variability of the manufacturing process is unknown. Is there evidence that the mean dimension is not 224 mm?
Microsoft appears to have a monopoly : Microsoft appears to have a monopoly with over 90 %of the personal computer operating market. Why then would it not be charging a monopoly price
Production possibility frontier to illustrate : Use a production possibility frontier to illustrate the probable results of your fiscal policy. By how much did consumption change? By how much did savings change?
Find how long the sled takes to travel from a to b : A daredevil on the motorcycle leaves the end of a ramp with a speed of 36.0 m/s. If his speed is 34.20 m/s while he reaches the peak of the path, what is the maximum height that he reaches? Ignore friction and air resistance. In meters
Find the net service credit and debit : Does Triton owe the bank the amount you have calculated for the net service credit/(debit), or can it carry this amount forward to offset future shortfalls?
What is the probability it was from manufacturer : A battery in a critical tool fails at 32 hours. Illustrate what is the probability it was from manufacturer 2
Biostatistics basics : List another common type of bias that can takes place in this type of study. Is it likely to have influenced the results here? Explain your reasoning briefly.

Reviews

Write a Review

 

Macroeconomics Questions & Answers

  Determining the law of supply

In article on the steel industry, The Wall Street Journal noted that as steel prices were falling, steelmakers were not cutting production

  Us household-as and ad diagrams

Describe the US household is harmful to the economy with the use of AS-AD diagrams.

  Find out the pricing strategy to increase revenues

In each of the cases listed below determine what this consumer needs to do (in terms of purchasing X and Y) to maximizes their utility.

  Inflation targeting be a good policy

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

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

  Discussion-non price competition

Explain how advertising can be employed to allow Tots-R-Us to keep price average above cost without encouraging entry.

  Production possibilities tables for germany and canada

Production Possibilities Tables for Germany and Canada (note that we are assuming that opportunity costs remain constant along the production possibilities frontier), and that each country produces only these two products).

  In using the taylor rule

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?

  Shutdown of factory-increase in unemployment rate

You are a member of the City Council of Mid ville , California, a town of 10,000 residents, comprised primarily of 'middle-class' blue-collar laborers.

  Questions about expansionary monetary policy

In the country A, all wage contracts are indexed to inflation.  That is, each month wages are adjusted to reflect increases in cost of living as reflected in changes in price level.  Explain answer with aggregate supply and aggregate demand curves.

  Transferable property rights on individual decision making

Explain the influence that transferable property rights versus non-transferable property rights, has on individual decision making.

  Canadian opportunity cost and production possibilities

What is opportunity cost of producing a car in Canada? What is the opportunity cost of producing the tonne of wheat in Canada? Describe the relationship between the opportunity costs of two goods.

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