User Account

All Pages

Describe expansionary fiscal and contractionary fiscal polic

Assignment Help Macroeconomics
Reference no: EM131034235 , Length: 1000 words

Short Answer Section 1:

1. What are the three goals of Macro Economics and how are they measured?

2. What are the components of Aggregate demand and how is it calculated?

3. What is a Monetary policy and what is the most frequently used tool/type used?

4. What are the primary Fiscal Policies and what component of AD are they designed to influence?

Short Answer Section 2:

1. Describe Expansionary fiscal and Contractionary fiscal policies make sure to include actions and problem they are designed to solve?

2. What advantage does using money have over the barters system and name and describe the three functions of money?

3. List and define the monetary tools and state the actions taken to increase the money supply (hint: expansionary monetary policies)?

Graphing and problems Section 1

1. Use an aggregate supply-and-demand diagram to show what would happen to an economy in which the aggregate supply (AS) never moved while the aggregate demand curve shifted outward year after year? (Make sure to state or show what happens to GDP and price levels)?

2. What is the aggregate supply curve, what does it represent? Draw the appropriate graph to illustrate your answer. Be sure and label all axes and curves.

3. Draw the Aggregate Demand and Supply model showing the changes in Price levels and Real GDP due to a decrease in Taxes?

4. From the following data determine the equilibrium level GDP?

GDP               C                I                G        net exports

5,000           3,700         1,000           800            -200             

5,500           4,050         1,000           800            -200             

6,000           4,400         1,000           800            -200             

6,500           4,750         1,000           800            -200             

7,000           5,000         1,000           800            -200

Graphing and problems Section 2-

1. What fiscal policy (or policies) is/are typically used to close a recessionary gap? Draw the Aggregate Demand and Supply model showing the changes in Price levels and Real GDP - make sure your illustration clearly shows the recessionary gap.

2. State a monetary policy and explain how it is used to close an inflationary gap? Draw the Aggregate Demand and Supply model showing the changes in Price levels and Real GDP - make sure your illustration clearly shows the inflationary gap.

Verified Expert

This is a macroeconomic assignment. The topics broadly cover in the assign includes recessionary gap, inflationary gap, fiscal policy tools and monetary policy tools. Precise answers with graphical analysis are provided as per the requirement of the assignment.

Reference no: EM131034235

Questions Cloud

Sex discrimination the los angeles department of water : Sex Discrimination The Los Angeles Department of Water and Power maintains a pension plan for its employees that is funded by both employer and employee contributions. The plan pays men and women retirees' pensions with the same monthly benefits. How..
Contract problem question : Catharine owned an antique store that specialised in rare porcelain dolls. When she opened the business in 1989, it was at a shop in an eastern suburb of Sydney. In 1999 she started to advertise on the Internet, and by 2007
In order for a party to rely on an exclusion clause : Prepare a written advice to a client about the following query:  "In order for a party to rely on an exclusion clause, what must they show?"   You are expected to demonstrate knowledge about relevant exclusion clause cases, by incorporating discussio..
Determine the makeup of the mixture on a mass : determine the makeup of the mixture on a mass basis and the internal energy change per unit mass of mixture.
Describe expansionary fiscal and contractionary fiscal polic : Describe Expansionary fiscal and Contractionary fiscal policies make sure to include actions and problem they are designed to solve?
What model should dsi adopt for a cloud-based osds : What model should DSI adopt for a cloud-based OSDS? How should DSI assess the risk of adopting a cloud-based OSDS? What steps should DSI take to provide adequate security for the OSDS
Why is pollution haven hypothesis more likely to be correct : Why is the pollution haven hypothesis more likely to be correct in the case of recycled batteries than in the case of sock production?
Determine the rate of entropy generation during this process : Ethane (C2H6) at 20°C and 200 kPa and methane (CH4) at 45°C and 200 kPa enter an adiabatic mixing chamber.
Leaving the keys in the ignition : Halloween Day, Christine Narvaez drove her automobile onto the parking lot of a busy supermarket. Narvaez had her 2-year-old grandchild with her. The youngster was riding, unconstrained, in a booster seat. Narvaez saw a friend and decided to stop for..

Reviews

Write a Review

Macroeconomics Questions & Answers

  A company analyse it has the following short-run demand

A company analyse it has the following short-run demand. What initial price should the firm charge.

  Describing canadian money supply

What money supply must the Bank of Canada set next year if it wants to keep the price level stable? What money supply must the Bank of Canada set next year if it wants inflation of the ten percent?

  Find the present worth of the investment

Current machines have a 5 year life and were purchased 3 years ago at $1500000 - Invest $1 Million in upgrade costs to extend the life of the machines for another 5 years - Savings in labor resulting from upgrade, $300000 per year in 1st year doll..

  Mmachines of newspaper are designed one paper at a time

Mmachines of Newspaper vending are designed so that once you have paid for one paper; you could take more than one paper at a time.

  Growth of india and china

Growth of India and China - China and India are often referred to as two of the fastest growing countries. Compare their recent growth rates to the U.S. growth rate.

  Do you agree with joes argument

Joe enjoys fishing & goes out about 20 times per year. One day, Sara told him that fishing is too expensive of a hobby. She thinks he should stop going because she calculated that it costs about %28.75 for every fish he catches because he usually ..

  Computation of total revenue and marginal revenue

Graph these data using "dollars" on the vertical axis and "quantity" on the horizontal axis. At what output is revenue maximized?

  Use of fiscal policy to stimulate the economy

Someone advocates using fiscal policy to stimulate the economy and reduce unemployment.might this person advocate to implement the fiscal policy. increase federal spending, reduce tax rates or else.

  Now assume the government increases spending reducing

Now assume the government increases spending, reducing the country's savings rate based upon this change. What is the effect on the government spending on the economy.

  Explain the neo-classical theory of trade and show the

explain the neo-classical theory of trade and show the difference between this and the classical approach as wellas the

  Why did the colonists rebel against britain

Why did the colonists rebel against Britain? Why did so many colonists support the king and seek to remain part of the British Empire?

  Marginal and average products

The number of repairs manufactured through a computer repair shop depends on the number of employees as follows:

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