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Focus of the Final Paper In an effort to move the economy out of a recession, the federal government would engage in expansionary economic policies. Respond to the following points in your paper on the actions the government would take to address expansionary fiscal and monetary policies: Expansionary Fiscal Policy: Explain the actions the federal government would take while engaging in expansionary fiscal policy in terms of the following: The necessary change in taxes and government spending, The effect on aggregate demand, GDP, and employment. Expansionary Monetary Policy: The three tools the Federal Reserve Bank (The Fed) uses when conducting monetary policy are the required reserve ratio, the discount rate, and open market operations. Explain the actions of the Fed in regard to the three tools. When the required reserve ratio is increased or decreased When the discount rate is increased or decreased Buying or selling government securities when conducting expansionary monetary policy Explain how these actions would affect the money supply, interest rates, spending, aggregate demand, GDP, and employment.
Draw the function Y = F(K, L¯) in terms of Y and K, for some fixed L. On the same graph, plot the cost function for renting a certain amount of capital at a rental price of R, i.e. RK. For a profit maximizing firm, illustrate graphically how much cap..
Eric lives in Chicago and loves to eat desserts. He spends his entire weekly allowance on pudding and pie. A bowl of pudding is priced at $1.75, and a piece of apple pie is priced at $7.00. At his current consumption point, Eric's marginal rate of su..
Since 2005, the production of oil in the USA has increased dramatically The price of oil has fallen from $70 per barrel to $45 per barrel. This additional production has been very expensive, with operating cost around $55 per barrel to produce. From ..
q1. bob consumes two commodities x and y say chocolate and classical music. more y never hurts but in order to enjoy y
If in some country personal consumption expenditures in a specific year are $50 billion, purchases of stocks and bonds are $30 billion, net exports - what is the country's GDP for the year?
What is the concept of Balance of Payment of a State? How would you distinguish the composition of the current, capital and monetary accounts of BOP? Differentiate between BOP and Balance of Trade between two countries.
Suppose that an exogenous shocks (lack of demand for example) leads firms to dismiss some of their workers. Carefully discuss the impact of this shock on the equilibrium wages, unemployment, vacancies and the market tightness.
A monopolist is deciding how to allocate output between two geographically separated markets. What are price, output, prots, marginal revenues, and deadweight loss if. the monopolist can price discriminate? if the law prohibits charging deferent pric..
Proposed Free Trade Areas - there are many proposals for establishing free trade areas in Asia or the Americas. The US has completed free trade agreements with a number of countries (see USTR web site); there is a free trade area among some countries..
A monopolist faces an upward sloping demand curve. A perfectly competitive firm faces an upward sloping demand curve. A monopolist can increase the price of its product and not lose all of its business.
What is the fertility transition and when did it take place in the United States? What explanations have been proposed to account for the fertility transition? Critically evaluate each of these explanations in accounting for the fertility transition ..
Expalin why is the depreciation of capital good a cost of society
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