User Account

All Pages

hihiiu, Corporate Finance

Assignment Help:
The approved budget for 1997, reduced government spending in housing and urban development, health and human service, and education. Ignoring any other modifications, how would Classical and Keynesian economists explain the short and the long-run effects on real output, price, and unemployment? Show your answer with a graph.

2. The vertical long run AS curve compatible with classical economics implies that AD only determines the price level. Keynesians insist that the AD affect output and employment, but not the price level. What differences in assumption about prices partially account for these different perspectives?

3. Find the aggregate supply curve when:

a. The production function is Q = 3LK, labor demand Ld = 10-2w/p, labor supply is Ls = 4w/p, and capital stock in the economy is fixes at K = 4.
b. Is the AS curve derived in "a" representative of the classical, Neo-Classical, or extreme Keynesian cases?
c. How would your answer to "a" and "b" change if the real wage were fixed at 3?

4. Derived the equilibrium price level and output for an economy with the following characteristics:
a. Consumption is C = 10-5p, investment I=20, government spending is G = 15, aggregate supply is Qs=5+p.
b. What happens to production and prices if government spending rises to G = 25?
c. How would your answer to "a" and "b" change if AS were Qs = 10?

5. If the national product of a country grew by 10% without inflation, and total expenditures grew by 5%. By how much has the money supply grown? Do these results support the neutrality of money argument? Explain.

6. During the early 1980s, the United States experienced both increases in the price level and reductions in the levels of production and employment. How can the AS-AD model explain this situation? What would have happened if the government increased its spending to ameliorate the decline in production?

7. An important macroeconomic issue that countries are facing is the integration trend all over the world. More specifically, the EU short and long-term effects in the US have been the source of disagreement among economists. In the short-run, they agree on a recessionary impact in the economy. Would classical and Keynesian economists agree in an increase of unemployment as well? Would they agree in the long-term effects? Show your answer with graphs. Be sure to explain the assumptions and mechanisms by which you arrive to your answer.

8. During the last two weeks, the dollar rose against the euro after US stocks rose and Germany’s central bank left interest rates unchanged. Rising stocks help the dollar because investors need dollars to buy US securities. In addition, Germany’s record-low interest rates boost the dollar by making euro-denominated deposit rates less attractive. Would classical and Keynesian economists agree in the impact that a rising dollar would have on real output? Would they agree in the long-term effects? Show your answer with graphs. Be sure to explain the assumptions and mechanisms by which you arrive to your answer.

9. Consider an economy described by the following equations: Q = 5,000; G=1,000, T= 1,000, C= 250 + 0.75 (Q-T), I = 1000 – 50 r

a. Compute private, public, and national savings.
b. Find the equilibrium interest rate.
c. What would the new national savings be if G rises to 1,250?
d. What is the impact of “c” on interest rates? Is there any crowding out effect?

Related Discussions:- hihiiu

Equity financing with debt financing, Seattle Health Plans currently uses z...

Seattle Health Plans currently uses zero debt financing.  Its operating income (EBIT) $1 million, and it pays taxes at a 40 percent rate.  It has $5 million in assests and because

Wacc, The cost of capital for a firm can differ from the cost of capital fo...

The cost of capital for a firm can differ from the cost of capital for each of its businesses. When a firm has multiple businesses, it is important to use the cost of capital appro

INVESTMENT DECISION, You are a ceo of a sotware firm that has limited acces...

You are a ceo of a sotware firm that has limited access to debt equity markets. The average return on last year projects is 28 % . and cost of capital is 12%. would npv pr Irr be

Assign, Ask question #Minimum 100 words acceptedPlease describe what you se...

Ask question #Minimum 100 words acceptedPlease describe what you see as the financial reporting failures in the last four years time period#

Explain about the commission broker, Explain about the Commission Broker ...

Explain about the Commission Broker All brokers sell and buy securities for earning a commission. From the investor's point of view, he is the most significant member of the

Purchase the machine outlaright, calculate pv

calculate pv

Inventory turnover ratio, Calculate monthly inventory turnover ratio

Calculate monthly inventory turnover ratio

Dividend policy, What are the advantages and disadvantages of the alternati...

What are the advantages and disadvantages of the alternative dividend policies of the three companies? Discuss the circumstances under which each managing director might be correct

IRR, Hello, can you help me to calculate the Discount rate and Internal Rat...

Hello, can you help me to calculate the Discount rate and Internal Rate of Return?

#titlefiscal policy.., Ask question #Minimum 100 words aapplicability of al...

Ask question #Minimum 100 words aapplicability of allocation function of fiscal policy#

Write Your Message!

Captcha
Order Assignment

Featured Services

Order Now

Popular Subjects

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd