Model of ice cream production can be used to explicate

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Q1. Explicate the problem of time lags in enacting also applying fiscal policy. Explain how could "politics" complicate fiscal policy? Explain how might expectations of a fiscal policy being temporary weaken the effects of the policy?

Q2. Illustrate what is the purpose of macroeconomic models? Explain how a model of ice cream production can be used to explicate 50-fold income differences across countries

Q3. India is a country which produces two goods, textiles also computers. Last year, India produced 500 textiles also 1300 computers. This year it produced 450 textiles also 1100 computers. Given no further information, which of the subsequent events could explicate this change?

Reference no: EM1313930

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