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Macroeconomics Assignment
100 words per question
1. What causes the lags in the effect of monetary and fiscal policy on aggregate demand? What are the implications of these lags for the debate over active versus passive policy?
2. According to traditional Keynesian analysis, why does a tax cut have a smaller effect on GDP than a similarly sized increase in government spending? Why might the opposite be the case?
3. What might motivate a central banker to cause a political business cycle? What does the political business cycle imply for the debate over policy rules?
4. Explain how credibility might affect the cost of reducing inflation.
5. Why are some economists against a target of zero inflation?
6. Explain two ways in which a government budget deficit hurts a future worker.
7. What are two situations in which most economists view a budget deficit as justifiable?
8. Some economists say that the government can continue running a budget deficit forever. How is that possible?
The firm wants to provide a semiannual award of $4500. The foundation will deposi the company's endowment in a fund that pays 3.75% compounded semiannually. The first aware will be made in 14 months. Calculate the size of the endowment that will be..
Using the tool provided by the BLS website, create a graph of the CPI over the past three years and paste an image. What are the trends? Are the trends normal or unusual during the past three years?
Explain how the economy can adjust in the long run to restore full-employment equilibrium. Draw a graph to illustrate this adjustment process.
Which of the following is true of regulation? 1. Regulatory agencies often ignore the secondary effects of their actions and fail to foresee future problems.
Illustrate what are the major macroeconomic goals of all societies.
suppose the ratio of deposits that banks hold in the form of reserves is 7 percent. suppose further that people want to
When a man retires, he invests $20,000 in a bank, interest at 8% per annum of the amount to his credit to be added at the end of each year. When the interest for each year has been added,
If the Inflation rate were to accelerate the economy would be flourishing as there is a need for more people to do the work.
Illustrte what is the put premium on a December 25 PHLX pound contract with an exercise price of $1.81.
Assume that Kiribati can produce 1000 tons of breadfruit or 500 tons of fish, and that Tuvalu can produce 750 tons of breadfruit or 1875 tons of fish.
what are the highest and lowest payments from the writer that the beekeeper- farmer team will accept for the sixth day Assuming that the farmer can dispose of $7 from the writer as she wishes, what range of payments will the beekeeper accept
Consider the Boeing-Airbus game shown below. The numbers indicate the potential profit/ loss (€ billion) from developing a ‘mega-carrier’ passenger jet, depending on what the rival does.
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