Nature of the implementation lag

Assignment Help Macroeconomics
Reference no: EM132631552

1. Suppose the government cuts transfer payments in an economy with an inflationary gap. How would this policy affect bond prices, interest rates, investment, the exchange rate, net exports, real GDP, and the price level? Show your results graphically.

2. Given the nature of the implementation lag discussed in the text, discuss possible measures that might reduce the lag.

3. Federally funded student aid programs generally reduce benefits by $1 for every $1 that recipients earn. Do such programs represent government purchases or transfer payments? Are they automatic stabilizers?

4. The text notes that changes in oil prices can affect the inflation-unemployment outcome. Explain what effect changes in oil prices may have on these two variables.

Reference no: EM132631552

Questions Cloud

Insert New Slide on Home tab using the Two Content layout : PPT Assignment - Insert a New Slide on the Home tab using the Two Content layout: Include an Online Picture representing the Internet
Dad and the das equations : Derive both the DAD and the DAS equations in this slightly more general model
How are you communicating differently in the workplace : Describe your experience in this course and how have you evolved as a communicator. How are you communicating differently in the workplace?
What are the three types of lags faced by the government : 1. What are the three types of lags faced by the government when it comes to implementing a stabilization policy (fiscal and/or monetary)? List and explain.
Nature of the implementation lag : Given the nature of the implementation lag discussed in the text, discuss possible measures that might reduce the lag.
Explain the importance of leadership to team : Explain the importance of leadership to a team. Explain leadership practices you incorporated into your leadership style.
The ethical cost of doing business debate : Detecting unethical practices at supplier factories, to include monitoring and compliance, is a major challenge to say the least.
What is the country unemployment rate : If Viracein uses the same calculation to find the unemployment rate, what is the country's unemployment rate?
Explain endorsements and get-out-the-vote drives : How can unions secure economic gains? Explain the ramifications. Briefly explain endorsements and get-out-the-vote drives.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Application that reads three values from the user

(Find the Minimum) Write a method minimum3 that returns the smallest of three floating point numbers. Use the Math.min method to implement minimum3. Incorporate the method into an application that reads three values from the user, determines th..

  What is the nature of adam of humans in general

What is the nature of Adam, of humans in general? What is their relationship to angels and the other created beings? How did the angels feel about the creation

  How might contracts influence the sustainability of business

A discussion of the importance of contracts in American business. Why do contracts exist? How might contracts influence the sustainability of a business?

  Is the argument sound or unsound

All dogs are dangerous. The golden retriever is a dog. Therefore, the golden retriever is dangerous. Is this argument sound or unsound?

  What is the impact of oil industry

Why government needs to reduce its dependence on oil industry? What steps are taken by Oman's government to reduce its dependency on Oil Industry

  Differentiate between primary and secondary markets

Describe the role of the financial institutions and financial markets in our economy. Differentiate between primary and secondary markets. Differentiate between money and capital markets.

  Examine an exchange-traded fund for that currency

Examine an exchange-traded fund (ETF) for that currency, perform any additional research you need to do in order to understand the topic, and then write a 750-word paper that summarizes the results of your macroeconomic analysis.

  Why does a market labor supply curve have a positive slope

Why does a market labor supply curve have a positive slope even though individual labor supply curves may be backwards bending?

  Play around with prices is a bad idea

Read the article "Play around with prices is a bad idea" and answer the following questions:

  Keynes describws that the level of output and employment

Keynes describws that the level of output and employment in the economy was determined by aggregate demand or effective demand.

  Consider a perpetuity that has a coupon of $100 per year

Suppose that the interest rate is 5%. Which of the following statements are true and which are false?

  Effects of crowding on an investment demand curve

There is no missing information. This is a general question in regards to the effects of crowding on an investment demand curve.

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd