Reference no: EM13341610 , Length: 1000 words

It  should  contain  a  reference  page  at  the  end  ,  and  the  similarity  scores  cannot  be  more  than  15%.  In  text  citation  is  highly  require  and  APA  format  must  be  use  to  complete  this  assignment  and  for  the  references. 

SECTION A

Write  1000  word  document  that  respond  to  the  question  below , each  part  must  be  clearly  responded  to,  and  APA  format  must  be  use  ,  a  reference  page  must  also  be  included  at  the  end .of  this  section.  The  similarity  scores  cannot  be  more  than  15%  

Part I

Describe John Maynard Keynes’ contribution to the theories of Macroeconomics. Why was he such an important economist? Discuss the theories of two other 20th century economists who made a significant contribution to the study of economics. 

Part II

Assume that Country A has a population of 500,000 and only produces one good—cars. Country A produces 100,000 cars per year. The people in Country A purchase 90,000 cars, but there are not enough cars to fulfill all the demand. They decide to import 50,000 more. The government buys 25,000 cars for its police force, and 10,000 cars are bought by companies to transport employees to other locations to work. They also export 65,000 cars to nearby countries for sale. 

• What is Country A’s GDP? 

o What is the composition of GDP by percentage?

o What is the GDP per capita?

o If government purchases go up in the short run, what happens to GDP? Show this graphically.

o If consumption and government purchases go up, what happens to GDP in the long run? Why? How would this look in a graph?

o How does this relate to Keynesian economics? 

Part III

Go to the Bureau of Economic Analysis on the Department of Commerce’s Web site, and look up the latest new release for real GDP. 

• Where are we in the business cycle?

• What is the real GDP today?

• What is the nominal GDP today?

• What is the difference between nominal and real GDP?

• What is the largest component of GDP?

• What is the smallest component of GDP?

• What is the fastest growing component of GDP and why?

• What components of GDP were involved in the change from last month to this month?

• What is the price index today?

• What caused the change?

• Is the GDP price index different from the CPI? How so?

• Which price index—CPI, GDP, or PPI—makes the most sense to you? 

SECTION  B

Write  400  word  document  that  respond  to  the  question  below .  APA  format  must  be  use  to  ,  a  reference  page  must  also  be  included  at  the  end  of  this  section. The  similarity  scores  cannot  be  more  than  15%.

Choose a developing country, and discuss its economic growth in the last 2–3 years. Include the following information:

• Identify its growth in output per capita and in population growth.

• Is it an open or closed economy?

• Describe the quality and quantity of its labor force and other inputs of production.

• Identify its comparative advantage and whether it is involved in trade.

• Identify the country's type of economy—how their economy is a market, command, or mixed economy.

• Is this country in good or bad shape regarding the balance of payments?

• Is the country's foreign exchange overvalued or undervalued? Has the central bank intervened in the foreign exchange market on behalf of the country's currency valuation?

• Has it benefitted from any trade agreements? If so, how? If not, should it? 

Using the information you gathered, discuss whether you believe the country is on a good course of economic growth and whether the macroeconomic policies are helping achieve this growth.