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Explain what fiscal policy is and how it works.
a. What are the fiscal policy instruments? What are the fiscal policy types?
b. Do you agree with the following statement: “Even if the Congress does not pass anynew laws to stimulate the economy, the fiscal policy is still facilitating the economicrecovery?”. Explain what this statement implies. Use the appropriate terms to describethe mechanics of the fiscal policy in this situation.
c. Currently the economy is facing an inflationary gap and the government is extremelyconcerned with the rapidly raising prices.
i. Draw an AD-AS model showing this gap (actual real GDP is $670 billion,potential output is $650 billion).
ii. MPC in this economy is 0.6. What instrument should the government use to closethis gap? Calculate all appropriate multipliers. Calculate, explain, and comparethe effect of each instrument on the budget balance.
What is the "current macroeconomic situation" in the U.S. (e.g. is the U.S. economy currently concerned about unemployment, inflation, recession, etc.)? What fiscal policies and monetary policies would be appropriate at this time?
How much would you pay for a share of stock paying a dividend ?(cash payout ?C) of ?$4 to be paid in one? year, a known selling price in one year ?(?P) of ?$50?, and expected return ?(R) of similar assets of 2?%? Compute the price of a share of stock..
Use the following information to prepare a budgeted balance stitch corporation at march 31 .Show computation for the cash and owners's equity ammounts. ______ + _______ - = equity ____ + ______ - = Prepare the assets section of the balance sheet , th..
Consumer surplus at any specific quantity is measured as the_________ distance between the demand curve and the level of the market clearing _______
How did the Social Security system influence the size of budget deficit during 1985-2010? How will it influence the deficit during the next two decades? Why or why not?
Allysha just borrowed 46,300 dollars. She plans to repay this loan by making a special payment of 5,800 dollars in 5 years and by making regular annual payments of 7,900 dollars per year until the loan is paid off. If the interest rate on the loan is..
How do I find the level of output (Q) that revenue is maximized?
In the text, we considered a sequential move game in which an entrant was considering entering an industry in competition with an incumbent firm ( Figure 15- 1). Consider now that the entrant, if fought, has the possibility of withdrawing from the in..
Often, there is news and critics that cast stones at the economic policies of Congress and/or the President. However, I find that average critics don't offer up an alternative solution, but simply criticize. Pretent that you are in charge for a day o..
When the market generates an equilibrium price, we know
Your financial adviser recommends buying a 10-year bond with a face value of $1,000 and an annual coupon of $75. The current interest rate is 8 percent. What might you expect to pay for the bond (aside from brokerage fees)?
Is the china dishes a personal property? What is a personal property? Do Marlene waver her ownership rights by abandoned the dishes at a dump site? Does Joe have new owner rights to the china dishes when it was found at the dump site?
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