What kind of policy mix would you recommend

Assignment Help Other Subject
Reference no: EM131971899

National Economic Policy

Questions

1. Suppose policymakers in a closed economy are concerned about inflation and want to increase the interest rate without changing the level of real GDP. What kind of policy mix would you recommend and how would your policy mix affect the components of GDP? Explain your answer and the adjustment processes that take place with the help of an IS-LM diagram.

2. In the short-run, the effect of an expansionary fiscal policy on the output level is very large when money demand is relatively insensitive to the changes in the interest rate. Do you agree or disagree with this statement? Why? Use appropriate diagram(s) to explain your answer.

3. Suppose an economy characterized by flexible prices and rigid nominal wage in the short-run. Using Aggregate Demand-Aggregate Supply framework, discuss the short-run and long-run effects of a decrease in money supply on the price level, real GDP, nominal wage rate and real wage rate.

Verified Expert

The assignment is related to macro and micro economics it is in question and answer form there are graphs related to expansionary fiscal policy and national income and rate of interest there is detailed explanation regarding the national economic policies

Reference no: EM131971899

Questions Cloud

Explain the concept of the fama-french model : The expected premium on small stocks relative to large stocks is 6%, and the expected risk premium on low book-to-market stocks relative to high book-to-market.
Example of absolute and comparative advantage : Give an example of absolute and comparative advantage. Explain how this is linked to the economic belief that all countries can benefit from trade.
The price of put option necessary to guarantee sales price : Over the past five years, the price of land in the area has increased 6 percent per year, with an annual standard deviation of 32 percent.
What is the value of this company output : The market value of the dishwasher machines in 1998 was $200 per unit. What is the value of this company's output that will be included in the 1998 GDP?
What kind of policy mix would you recommend : National Economic Policy - What kind of policy mix would you recommend and how would your policy mix affect the components of GDP? Explain your answer
Compute the expected rate of return for a stock : What is the expected rate of return for a stock that is expected to pay $1 dividend next year and is currently selling for $10.
What is the appropriate cost of equity : Currently the expected return on the market is 10% and the US T-bill is yielding 39%. What is the appropriate cost of equity?
What is the amount of wages expense recorded on next payday : The last day of the month is Wednesday, March 31. What is the amount of Wages Expense recorded on the next payday, Saturday, April 3?
How much should you be willing to pay for a stake : You expect Newco to have no earnings for the next two years. You expect Newco to have earnings of $1,000,000 in year three.

Reviews

len1971899

5/5/2018 6:58:49 AM

This assignment is worth 20% of your overall assessment in this unit. Submission: Before commencing the assignment you must read the following notes and also at the end of this assignment • Answer all three of the following questions. • You must not scan diagram from the textbook or any printed source, or copy from any electronic source. You must draw it. You can scan your own drawing, if required. • word limit is not binding. But please note that a long answer is not always a good answer; a good answer is concise and to the point. You must also read the following sections in the Unit Outline: Use Harvard style referencing

Write a Review

Other Subject Questions & Answers

  Depolarization and repolarization phases of action potential

When ion movements across the membrane occur during the depolarization and repolarization phases of an action potential, they are moving by

  Describe the structure of your ecosystem

Describe the structure of your ecosystem including important abiotic features and dominant plant and animal species.

  In what ways were the formal innovations of european

in what ways were the formal innovations of european cinemas assimilated by american filmmakers and integrated into the

  Essay on role of strategic planning to contemporary business

Essay The role and importance of planning and strategic planning to contemporary business - The impact of internal and external factors on business environment

  Discuss proper etiquette in the discussion forums

Why do you think GCU emphasizes quality discussion posts and proper etiquette in the Discussion Forums

  Provide the items or activities that need to be addressed

Assignemnt: American Rangelands and Forests- Action items: Provide the items or activities that need to be addressed or that need to occur.

  Strongly counter-intuitive consequences

Cultural relativists argue that moral standards exist only within specific societies; that there are no objective, culturally independent standards of morality.  Many people reject this position because it entails strongly counter-intuitive conseq..

  Develops a plan of care including nursing assessments

develops a plan of care including nursing assessments and interventions to be implemented if one of the types of allergic reactions occurs

  Write literature review of all given sources

I need a literature review written that includes all of the sources listed below. The topic of my research paper is about whether or not having an abortion affects mental health in women

  What is the maximum height achieved

A projectile is launched vertically from the surface of the Moon with an initial speed of 5.54 × 102 m/s. What is the maximum height achieved by the projectile?

  Which psychological approach makes the most sense to you

Which Psychological approach makes the most sense to you? Who do you most identify with? Explain briefly your answer, and please comment on a classmates post as well

  How and to what extent should technology

How and to what extent should technology/media be used for educational purposes? For example, should teachers integrate technology as much as possible in their lessons? Should parents encourage children to study using educational software and the ..

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