Reference no: EM132501214
Include correctly labeled diagrams, if useful or required, in explaining your answers. A correctly labeled diagram must have all axes and curves clearly labeled and must show directional changes. If the question prompts you to "Calculate," you must show how you arrived at your final answer.
An economy is currently in a recession.
(a) Draw a single correctly labeled graph with both the short-run and long-run Phillips curves. Label the current short-run equilibrium as point X.
(b) Is the expected inflation rate greater than, less than, or equal to the actual inflation rate?
(c) Will borrowers on fixed-rate loans benefit from the situation that you identified in part (b)? Explain.
(d) Assume the government budget is balanced. In the absence of any discretionary policy action, will the government budget move into surplus, deficit, or remain in balance? Explain.
(e) On your graph in part (a), show how the economy will adjust in the long run in the absence of any discretionary policy action.
(f) Now assume instead the government increases spending without changing taxes to close the recessionary gap. What effect will this policy have on the national debt?
(g) Draw a correctly labeled graph of the loanable funds market and show the effect of the change in the national debt on the equilibrium real interest rate.
(h) Based on the change in the equilibrium real interest rate identified in part (g), what will happen to economic growth in the country in the long run? Explain.
How is the federal debt different from the federal deficit
: How is the federal debt different from the federal deficit?
|
Find the direct materials price variance
: For 2013, the standards for direct materials were 2 pounds per unit at $5.50 per pound. Compute the direct materials price variance for 2013.
|
Industrial organizations of perfect competition and monopoly
: What are the differences in the conclusions between the industrial organizations of perfect competition and monopoly?
|
How much are the retained earnings of brooks corporation
: Brooks Corporation are $100,000, total liabilities are $17,000, and capital stock is $20,000, how much are the retained earnings of Brooks Corporation?
|
Draw a single correctly labeled graph
: Draw a single correctly labeled graph with both the short-run and long-run Phillips curves. Label the current short-run equilibrium as point X.
|
Identify the size of an economy
: How can we identify the size of an economy either it is small or Large, please elaborate and discuss in detail.?
|
Determine cost of goods sold and net cost of purchases
: Determine cost of goods sold. Determine net cost of purchases. Determine net sales. Determine cost of goods available for sale
|
Determining the average propensity to consume
: If the equation for the saving schedule is S = -12 + 0.12Y, where S is savings and Y is disposable income, then the average propensity to consume
|
FIN5FSA Financial Statement Analysis Assignment
: FIN5FSA Financial Statement Analysis Assignment help and Solution, La Trobe University - Assessment Writing Service - Collect the last 10 years data
|