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Monetary and fiscal policy instruments are used to affect the aggregate demand (AD) in the economy.
a. What is the difference between contractionary and expansionary monetary policy? What is the difference between contractionary and expansionary fiscal policy? How does each policy affect the AD in the economy?
b. What are the benefits and major problems of the fiscal policy and monetary policy?
There is a short-run tradeoff between inflation rate and unemployment rate. In the short-run the tradeoff of between inflation rate and unemployment rate creates a challenge for macroeconomic policymakers.
a. If you were macroeconomic policymaker, how do you balance the short-run tradeoff between inflation rate and unemployment rate? Explain.
b. What is the historical relationship between rates of unemployment and inflation in the U.S. economy? What are the most current figures for the unemployment rate and the inflation rate? What does this say about the U.S. economy today?
Is the following statement correct or incorrect: "If a firm operating in a monopoly or imperfectly competitive industry is trying to maximize profits, it will always charge the highest price that the traffic will bear." Explain why or why not.
Illustrate price as well as quantity will maximize revenue. Elucidate the total revenue and price elasticity at this point.
what determines whether or not resources is scarce? Why is the concept of scarcity important to the definition of economics?
Assume the market for computer chips is dominated by two firms: Intel and AMD. Intel has discovered how to make superior chips and is considering whether or not to adopt the new technology.
Question 1: In most cases, demand for products or services can be broken down into several components. Which of the following is not considered a component of demand?
Survey the monetary policies adopted by the Federal Reserve Board since the countries financial crisis erupted in 2008. How will these policy steps affect the nation’s employment, inflation, real interest rate and real exchange rate over the long run..
What is NDP, Net exports, Govt. taxes minus transfers and disposable personal income Personal Saving
In 2008, the box industry was perfectly competitive. The lowest point on the long run average cost curve of each of the identical box produces was $4,
What is meant by the Golden Rule and use the Mankiw Golden Rule graph to discuss whether this increase in the US s would have any effect on the GR variables of interest.
Analyse the economic situation in Greece since the financial crisis, the effects the austerity measures have had and may have on the economy, and provide a recommendation to future policy makers.
Compute and contrast the options that the local governments will need to discuss given the lack of resources that are currently available.
Emerging economies are facing a "new reality" that is significantly slowing the pace of economic convergence with the rich world and risks leading to further financial market volatility, discuss.
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