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Inflation, deflation and discretionary fiscal policy
Questions:
1. Explain the various types of inflation and its consequences. Suppose you borrow $1000 from a bank at 5% interest for one year and the inflation rate that year is 10%. Was this loan advantageous to you or to the bank?
2. Explain two limitations of the discretionary fiscal policy.
3. Describe the difference between inflationary gap and deflationary gap.
The impact of changing from a federal income tax to a federal consumption tax would be:
Thailand Economy: I am third year student at college of Business (Finance). I have Macroeconomic research paper about Thailand economy. I want research paper and PowerPoint slides to present the paper.
Use the production possibilities frontier (PPF) to demonstrate economic growth.(Growth and the PPP)
Why might it be difficult for the Fed to formally adopt inflation targeting? Would inflation targeting be a good policy for the Fed in the present economic environment
Use the firm's isoquant-isocost diagram and the firm's marginal cost curve to explain and illustrate the output and substitution effects of a decrease in the price of labor.
Consider the following two good pure exchange economy: Alfred's utility function is U A (x, y) = min{x, y} and Bob's utility function is U B (x, y) = max{x, y}.
Provide brief but theoretically sound explanation for each of the following.
Two identical firms face linear demand. Market demand is given by P=30-Q. Compare graphically consumer and producer surplus in Cournot and Stakelberg equilibria to perfect competition.
The Canadian economy is in long-run equilibrium. Assume the following events occur one at a time. Show the effect of each event on Aggregate Demand and Short-run Aggregate Supply in Canada by shifting only one curve.
Suppose that workers and firms could always predict next year\'s price level with perfect accuracy.
In a simple model with no government or foreign sector, the amount of involuntary inventory accumulation at equilibrium is
Joe Donaldson deposited $80,000 in his new business. Prepare all entries related to above transactions.
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