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Assume YN = 11,600, t = 0.2, and G = 2,610. a) Compute the amount of taxes at natural real GDP. b) Explain why there is a natural employment deficit. Compute the amount of the natural employment deficit in terms of both billions of dollars and as a percent of natural real GDP. c) Suppose that the goal of fiscal policymakers is to reduce the size of the natural employment deficit to 1 percent of natural real GDP. Compute what the size of the natural employment deficit must be in terms of billions of dollars in order for fiscal policymakers to achieve their goal. d) Given no change in the tax rate, compute by how much fiscal policymakers must cut government spending in order to accomplish their goal. e) Given no change in government spending, compute by how much fiscal policymakers must increase the tax rate in order to accomplish their goal. f) Given the objective of fiscal policymakers, explain what action monetary policymakers must take for the actions of fiscal policymakers to have no effect on real income. g) Suppose that private saving increases as the interest rate increases. Given the fiscal-monetary policy mix described in parts c-f, explain whether national saving increases by an amount that is larger than, equal to, or less than the decrease in the natural employment deficit. Suppose that ex is the exchange rate between the U.S. dollar and the Chinese yuan in that ex indicates the number of yuan that can be purchased with one dollar. The demand for dollars, denoted, D$, is given by the equation D$ = 2,800 - 200ex. The supply of dollars, denoted, S$, is given by the equation S$ = 400 + 100ex. a) Calculate the demand for dollars and supply of dollars at exchange rates between 0 and 12 in increments of one. b) Graph the demand for dollars and supply of dollars against the exchange rate. What is the value of the equilibrium exchange rate? c) Suppose the demand for dollars increases by 300 billion at each exchange rate. Explain if the increase in demand results from a large purchase by the Chinese of a new American-made airplane or a large purchase by Americans of new lower priced Chinese-made high definition televisions. Calculate the new demand for dollars at each exchange rate and graph the new demand curve. What is the new equilibrium exchange rate, given the original supply of dollars? d) Suppose the supply of dollars increases by 600 billion at each exchange rate. Explain if the increase in supply results from a large purchase large by the Chinese of a new American-made airplane or a large purchase by Americans of new lower priced Chinese-made high definition televisions. Calculate the new supply of dollars at each exchange rate and graph the new supply curve. What is the new equilibrium exchange rate, given the original demand for dollars?
Labor hours required to produce one unit of cloth in the united kingdom is 6. The labor hours required to produce one unit of cloth in the united states is 5. Which country has an absolute advantage of producint wheat In producing cloth
Currently, K = 100. What is the cost of producing 10 units in the short run? Hint: first determine how much labor is needed.
What is the expected annual real depreciation consistent with interest parity?
How can you justify the existence of government-granted monopolies for public utilities such as natural gas distribution and electricity in the light of traditional economic argument that the more competition there is, the more likely it is that a..
It has been proposed that toll collection on the Massachusetts Turnpike, a key commuter route into Boston from the west, be discontinued. Proponents argue that tolls have long ago paid for the cost of building the road
What is the South African government providing?
"we oppose a nationsl market for pollution rights, as this would put an undue burden on low-income households who would no longer be able to afford to drive cars or heat their homes. instead, we propose that large corporations be required to reduc..
Using a graph show (and discuss) that the presence of external economies creates a natural entry barrier for new entrants when there is an incumbent industry,
1. you have 600 to spend on beans and rice. the price of beans is 40 and the price of rice is 30.a graph your budget
there are also more than 475 bilateral and regional trade blocs, including the North American Free Trade Agreement and the European Union, which provide special trade preferences to member nations.
What is the corporate strategy that your selected firm seems to be following internationally: multi-domestic, global, or transnational? Explain your choice.Assess the appropriateness of this strategy.
in light of the economic struggles that many states are facing today every area of the criminal justice system is
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