Evaluate the validity of each economist claim

Assignment Help Business Management
Reference no: EM131613610

Consider the following hypothetical conversation between three economists about the effects on the economy of a permanent increase in direct taxes on labour income: ECONOMIST 1: "This policy is contractionary and disinflationary, but only in

the short run."

ECONOMIST 2: "The tax increase will have an inflationary effect that will make

the central bank put the brake on the real economy. Most of the contractionary effect will be permanent."

ECONOMIST 3: "This measure will not have any effect on inflation and, there- fore, no consequences for monetary policy will follow."

Go to the macroeconomic simulator accompanying the Carlin and Soskice text- book. Use the closed economy version and make sure you start from scratch, that is all shocks are reset.

In the simulator, implement the appropriate shock(s) and evaluate the validity of each economist's claim. Can you reconcile their different views? (Hint: consider that this policy may have both demand and supply effects.)

Reference no: EM131613610

Questions Cloud

Determine the adjusted balance in the cash account : Medina Company received its February bank statement on March 6. Determine the adjusted balance in the cash account after completing a bank reconciliation
Example of second price discrimination : Give one example of second price discrimination and suggest an alternative to circumvent it if you were a consumer in this market.
Describe four cardiovascular conditions : Describe four cardiovascular conditions that may lead to heart failure and what can be done in the form of medical/nursing interventions to prevent.
Explain the constitution bill of rights : the law enforcement should have Miranda Warning for the terrorist suspects and follow the Constitution Bill of Rights
Evaluate the validity of each economist claim : In the simulator, implement the appropriate shock(s) and evaluate the validity of each economist's claim. Can you reconcile their different views?
Find a recent article about value-based purchasing : Find a recent article about value-based purchasing. Summarize and provide your personal thoughts. Be sure to use APA format for your article citation.
Expenditure on raw materials as a function : A manufacturer makes two products out of two raw materials. Let q1, q2 be the quantities sold of the two products, p1, p2 their prices, and m1, m2.
Determining bad debt expense : Prepare the general journal entry to record end of the year adjusting entry if Flip uses 5% of Accounts Receivable as basis for determining Bad Debt Expense
Define what is the future of juvenile justice : what is the future of juvenile justice. Luckily, as we have seen, most delinquents age out of crime

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd