Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
A) Consider the following short-run closed economy IS-LM model described by equations (1) through (6): (1) C = 100 + 0.75(Y - T); (2) T = 600;(3) G = 500; (4) I = 800 - 20 r ; (5) Y = C + I + G ; (6) M/P = 0.5Y - 50r where the nominal money supply M=1180 and the price level is P = 1. Equation (5) is the goods market equilibrium condition (IS equation), while equation (6) is the money market equilibrium condition (LM equation). Solving for the equilibrium values of Y* and r* yields:
B) Consider the following short-run closed economy IS-LM model described by equations (1) through (6): (1) C = 100 + 0.75(Y - T); (2) T = 600;(3) G = 500; (4) I = 800 - 20 r ; (5) Y = C + I + G ; (6) M/P = 0.5Y - 50r where the nominal money supply M=1180 and the price level is P = 1. Equation (5) is the goods market equilibrium condition (IS equation), while equation (6) is the money market equilibrium condition (LM equation). Suppose that government expenditures increase by 100 units but that the Bank of Canada uses monetary policy to maintain the interest rate constant. Then this increase in government spending will cause
Show how expansionary fiscal and monetary policies work. Under what conditions would these policies work more, or less, effectively?
Who gains and who loses from a tariff? How do effects of tariffs differ from the effects of quotas? If you were a small country, what would you rather utilize?
Draw an AD/SRAS/LRAS graph in initial long run equilibrium. Label the vertical and horizontal axes appropriately.
Economists are often criticized for making assumptions. Explain why are assumptions necessary? To think about this, you might consider an assumption that is often made,
Calculate the percent misalignment (in log terms) for China, Venezuela, Switzerland, Norway, using Purchasing Power Parity, using the US as benchmark
A cash manager purchases $1 million in commercial paper with one month remaining until maturity. At maturity, the cash manager will receive the face value of the security. What will he pay for this security, assuming an 8% nominal return required by ..
For each of the following situations, use a graph to indicate the given bundle and accurately draw the indifference curve that goes through that bundle. Be sure to label you graph carefully and accurately. In all cases put the amount of good X o..
What factors influence the value in a currency? Use real-world examples to highlight events that have affected currency values.
Suppose the government decides to increase income tax by 10 percent in the economy which will affect the working class. explain the trade off which will take place between equity and efficiency due to this decision by the government
An economist has estimated the demand for cable television services in Eastern Pennsylvania, and has found the following elasticities: Price elasticity of demand for cable TV: EP = -1.25Income elasticity of demand for cable TV: EM = 0.85Cross-price e..
If there is a recessionary gap in the short run, then in the long run a new equilibrium arises when input prices and expectations adjust downward,
How does international trade affect the prices in the domestic market and decisions related to firms to compete in both domestic and international markets? Do you oppose trade restrictions? Who have been the winners and losers as a result of the N..
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd