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You are the chief policymaker at the Reserve Bank of Australia. Economic growth is growing similar to long-term trend. The prime minister of Australia informs you that given a federal election is due in a year, she will significantly increase government spending now.
Given (a) your knowledge of Aggregate Supply-Aggregate Demand, (b) fiscal policy and (c) the role of the Reserve Bank of Australia to maintain inflation at between 2-3% on average over the business cycle, what advice would you give her? Justify your answer.
In the study of economics, there are various economic sytems that various countries have adopted, which of the following is not an economic system?
1. Explain Opportunity Cost and provide an example. 2. What is the difference between absolute advantage and comparative advantage? What is the benefit of trade?
A open economy has a marginal propensity to import equal to .2 and a marginal propensity to consume equal to .7. Determine propensity to save of this economy?
Assuming no government sector, if planned investment spending is 200, what is the equilibrium level of aggregate output? Show this equilibrium level on the graph you have drawn.
According to economist, if savings equal $5 trillion and spending equals $100 trillion, what will investment equal?
A prudent tax system must meet certain essential qualities. Explain five indicators of a good tax system.
Assume that the nominal wage rate equals 60. In the short-run, aggregate demand and aggregate supply are equal at a price level of 1 calculate the real wage rate.
$10,000 is exchanged into Swiss francs at an exchange rate of $1 = 2 SF to buy the bonds. How many dollars will the investor have after one year if the exchange rate is then $1 = 1.5 SF?
1. A firm operates in a perfectly competitive industry. Suppose it has a short run total cost function given by TC= 42000 +0.001q^2. If the market price is 15, what is the firm's profit-maximizing quantity?
Topic of Cyclical unemployment in the U.S. must Utilize a minimum of three scholarly sources.
What are the pros and cons of using expansionary and contractionary monetary policy tools under the following scenarios: depression, recession
What do you like and dislike about Trump's spending and tax plan. Do you feel that Trump’s growth proposals are realistic?
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