User Account

All Pages

1-nbspnbspnbspnbspnbsp explain how a policy mix like the

Assignment Help Macroeconomics
Reference no: EM13346318

1-      Explain how a policy mix (like the one used in 1990s) could help reduced to eliminate the budget deficit without having an adverse effect on the output.   Illustrate your answer using IS-LM graph.

2-      A 1- year Canadian bond with a face value of 5000 can be purchased at 4800.

a)      Calculate the nominal interest rate in Canada.

b)      If the Canadian dollar is expected to depreciate against the US dollar by 1 % over the next year, calculate the current nominal interest rate in the US.

c)      How much could an American bond with the same Face value as the Canadian bond sell in the market?

3-      Suppose the economy is currently in recession, and the exchange rate if fixed using the IS-LM model.

a)      explain and illustrate the economy adjustment ( in the medium run)

b)      Explain and illustrate the economy adjustment (in the medium run) without devaluation.

4-      Suppose the firm mark up over the cost is 10% and the wage setting equation is W=P (1-u) where U is the unemployment rate.

a)      Find out the real wage rate implied by the price setting equation.

b)      Determine the natural rate of unemployment.

c)      Plot the wage- setting and price setting equation or a property labelled graph and identity the nature rate of unemployment.

5- Carefully explain the neutrality of money on the medium run. Use an aggregate demand - Aggregate supply diagram to illustrate your answer. 

105_macroecoomics.png

b) Find the natural rate of unemployment (NAIRO)

c) What is likely to happen to the curve if wage indexation becomes more widespread?  illustrate your answer on the graph?

Reference no: EM13346318

Questions Cloud

A review full headers of a sample email message you : a. review full headers of a sample email message you received in your gmail account create one if you dont have one
Problem consider a trapezoidal piece of polymer film as : problem consider a trapezoidal piece of polymer film as shown below. the parallel sides of the trapezoid are insulated
Emergency planning - canadian disaster assignment topic : emergency planning - canadian disaster assignment topic edmonton tornado 1987research and write a paper on a
1 which of the following are easy to trace to individual : 1. which of the following are easy to trace to individual jobs?nbsp a. direct materials and overheadb. direct materials
1-nbspnbspnbspnbspnbsp explain how a policy mix like the : 1-nbspnbspnbspnbspnbsp explain how a policy mix like the one used in 1990s could help reduced to eliminate the budget
You will produce a paper that is at least 7 pages and not : you will produce a paper that is at least 7 pages and not more than 10 pages double-spaced using 12 point pitch.nbsp
The paper discusses about the lithium air battery in which : the paper discusses about the lithium air battery in which detailed reactions of lithium with air including nonaqueous
The topic is about designingnbspa computernbspinterface to : the topic is about designingnbspa computernbspinterface to people with visual disability blindness- colour
1 economics is the study of the principles governing the : 1. economics is the study of the principles governing the allocation of scarce means among competing ends when the

Reviews

Write a Review

Macroeconomics Questions & Answers

  What happens to the demand for diet cola brand

Ceteris paribus, Diet Cola Brand X and Diet Cola Brand Y are substitutes in consumption. The price of Diet Cola Brand Y falls. a. What happens to the demand for Diet Cola Brand X? b. What happens to the demand for Diet Cola Brand Y?

  What role does each type of pay play in motivating managers

Explain several dimensions of the shareholder-principal conflict with manager agents known as the principal-agent problem. To mitigate agency problems between senior executives and shareholders, should the compensation committee of the board devot..

  Is nurd''s economy in equilibrium

If the full-employment level of Y is $250, what fiscal policy might the government follow? d. Suppose Y = $200, C = $160, S = $40, and I = $40. Is Nurd's economy in equilibrium

  Suppose each cake costs the same to make

Suppose each cake costs the same to make, what is the average cost to produce a cake. Compute Alyssa's labor productivity ration in dollars per hour for each type of cake.

  Compute the unregulated market level of output

compute the unregulated market level of output and price as well as the socially efficient level. By how much does the market output exceed the socially efficient output, and by how much is the market price below the socially efficient price

  What is the price elasticity of demand

Calculating elasticity: Draw a set of coordinate axes on a piece of graph paper. Label horizontal axixs from 0-50 units and vertical axis from $0- $20 per unit. Draw a demand curve that intersects the vertical axis at $10 and the horizontal axis a..

  What impact would that decline have on financial instruments

In the early 1980s, interest rates on long-term debt were at remarkable levels - above 15% with some even higher. Within a decade, rates had dropped precipitously. I have a couple of questions about that  What would the effect of a decline in inte..

  Stabilization policy recommendations of monetarists

Describe briefly the reasons why the following transactions would  or would not be included in GNP and  compare and contrast stabilization policy recommendations of  monetarists and activists.

  What the income tax ramifications of alimony structured in

John and Mary are divorcing. John is demanding that Mary pay him $75,000 of alimony in the first year after the divorce, $50,000 in the second year, and $25,000 in the third and all subsequent years until he dies or remarries. What

  Calculate the arc elasticity of demand

Redraw the Demand curve (only) in a new diagram. Demonstrate the Total Revenue change geometrically and indicate the Loss and Gain areas between the prices of $6 and $2 (Price has moved UP from $2 to $6).

  Discuss effect of program participation on work incentive

Draw the daily budget constraint without any program participation for the single parent described above. On the same graph, draw the daily budget constraint under The Texas Family Assistance Program for the single parent described above.

  Calculate the equilibrium values of consumption expenditure

Calculate the equilibrium values of consumption expenditureand the Government's budget balance.

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: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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