Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Assume that the central bank follows the following simplified version of the Taylor rule:
(a) What implicit weight is placed on the inflation target under this rule? Discuss. Draw an IS-MP diagram but instead of the usual MP curve, graph the monetary policy rule. You might label this curve MPT for the simplified Taylor rule.
(b) Now consider the effect of a negative aggregate demand shock in the IS-MPT diagram. Compare and contrast the effect of this shock on the economy in the standard IS-MP diagram (without policy response to the shock) versus the IS-MPT diagram. Is there a difference?
(c) Find the equilibrium values of the short-run output and the real interest rate from the IS-MPT model. Explain how these equilibrium values depend on the parameter.
(d) Economists refer to the result in the IS-MPT diagram as "crowding out". What gets crowd out and why?
(e) Briefly compare and contrast the economic effects of a temporary negative aggregate demand shock lasting for 2 periods in the standard AS/AD model (of the textbook) with that in the AS/AD model under the simplified Taylor rule above. Assume that in both cases the economy starts in the same long-run equilibrium.
If the price of a good decreases, the substitution effect shows the increase in the quantity of the good demanded, holding income constant.
The engineering approach to price estimation is depends on the least cost available technology needed to achieve a given level of abatement. The survey approach to cost estimation relies on estimated abatement expenditures obtained directly from pol..
Explain why does a production possibilities curve bow out rather than forming a straight line sloping downward from left to right.
Suppose that no taxes are imposed, Estimate the equilibrium value of GDP if government expenditures are $50 billion and inteneded investment is $50 billion?
How do you think the check tax affected the currency-deposit ratio and use the model of the money supply under fractional reserve banking to discuss how this tax affected the money supply.
Illustrate what is the demand and supply for labor in the unionized sector. Any surplus migrates to the uncovered sector. What is the new equilibrium wage and labor utilization in that sector.
Illustrate the similar price elasticity of supply, sellers would be able to pass along the smalles portion of a 10%tax on which item.
Compute the price or output combination and the total economic profits which would result if competitors offer clones which make the QuickerBetter market competitive.
Define transfer payments and give an example. Describe why transfer payments are not included in GDP. Determine which components of GDP would be affected through following,
Determining at least two websites or articles to help you answer the following questions about the petroleum industry. It is to be done is précis of the major points of the article or Web site, and to be referenced.
Determine what does a contractionary gap imply about the actual rate of unemployment relative to the natural rate?
United State Airways have a piece of land near the Pittsburgh International Airport. The land originally cost United State Airways 375,000$.The Airline is considering building a new training center on this land.
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd