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!
Assume that the central bank follows the following simplified version of the Taylor rule:
(a) What implicit weight is placed on the inflation target under this rule? Discuss. Draw an IS-MP diagram but instead of the usual MP curve, graph the monetary policy rule. You might label this curve MPT for the simplified Taylor rule.
(b) Now consider the effect of a negative aggregate demand shock in the IS-MPT diagram. Compare and contrast the effect of this shock on the economy in the standard IS-MP diagram (without policy response to the shock) versus the IS-MPT diagram. Is there a difference?
(c) Find the equilibrium values of the short-run output and the real interest rate from the IS-MPT model. Explain how these equilibrium values depend on the parameter.
(d) Economists refer to the result in the IS-MPT diagram as "crowding out". What gets crowd out and why?
(e) Briefly compare and contrast the economic effects of a temporary negative aggregate demand shock lasting for 2 periods in the standard AS/AD model (of the textbook) with that in the AS/AD model under the simplified Taylor rule above. Assume that in both cases the economy starts in the same long-run equilibrium.
Describe the uncontroversial final effect of a contractionary monetary policy and an expansionary fiscal policy.
A truck powered by a diesel engine working at a 100 percent load factor is operated at a mine. If fuel consumption for this truck is 0.3 l/kW
Explain how would you classify the product in terms of it's income elasticity.
Assume that the Federal Reserve acts to lower interest rates. How this will affect the U.S. economy.
A machine cost $4,000. It lasts two years and has no salvage value [that is, it has no value at the end of those two years of use]. In every year, it produces $ 2400 in income. Should the company invest in machine if the interest rate is 10 percent?
Some countries do not protect human rights in the same manner as the United States (US).
Differentiate the structural change and managerial opposition hypothesis as they relate to the decline in unionism. Determine which view do you think is more convincing?
The following information describes a hypothetical economy (assume all numbers are in billion if necessary) Determine the value of the MPC of this economy?
Elucidate which of the following theories of expectations holds that individuals usa all information available in forming expectations.
Outdoor Sports Corporation, with its main office in Iowa, is considering opening a branch office in Los Angeles. Under normal economic conditions, which have a 45 percent chance of occurring,
Illustrate what are the benefits and drawbacks of dynamic pricing for that particular company.
Illustrate what accounting tools also reports would you use. Use the Library and internet to re-explore value chain management.
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