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Effects of the changes in fiscal policy
What were the effects of the changes in fiscal policy in the simulation - Explain what happened in the simulation as you raised and lowered spending and income tax rates
Describe how inflation, unemployment, and popularity were affected by at least three different configurations of spending and taxation. For example one configuration could be high taxes, low spending on infrastructure, and medium spending on education.
What fiscal policies need to be in place to balance the ideals of lower inflation, lower unemployment, and increased popularity?
Suppose we have a competitive market for a good with domestic demand and supply given by:
Provide an update on the economy-where is unemployment, what is the outlook for the deficit, what are the overall predictions for 2010 - 2012?
Explain how have US economic or fiscal policies affected employment rates
Suppose that the car manufacturer allows the car dealer to return all unsold cars at the end of a recessionary year. What is the car dealer's profit in a growth year and in a recession? What is their expected profit?
Suppose that because of the ongoing financial turmoil banks become more prudent: that is, other things equal, banks want to hold more excess reserves and make fewer loans.
Consider economy that is above full-employment equilibrium (natural rate of output) because of an increase in AD. Prices of productive resources have'nt changed. With the help of graph
Calculate the cross-price elasticity for the following goods. Are they complements or substitutes?
In Gelate, Pennsylvania, the market for compact discs has evolved as follows. There are two firms that each use a marquee to post the price they charge for compact discs.
What is the marginal physical product of the fifth worker? What is the weekly wage of the fifth worker? What does the price of output need to be in order for the firm to profit from hiring the fifth worker?
Imagine a person's utility function over two goods, X and Y, where Y represents dollars. Specifically, assume a Cobb-Douglas utility function:
Now, assume the ECB also employs comparably aggressive policy. Copy your results from the left graph and show on the right graph how the ECB could affect the USD/EUR exchange rate.
Use a production possibility frontier to illustrate the probable results of your fiscal policy. By how much did consumption change? By how much did savings change?
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