Why the equilibrium levels of output are unaffected

Assignment Help Econometrics
Reference no: EM131136427

Assume that capital is perfectly mobile, the price level is fixed, and the exchange rate is flexible. Now let the government increase purchases. Explain first why the equilibrium levels of output and the interest rate are unaffected. Then show whether the current account improves or worsens as a result of the increased government purchases of goods and services.

Reference no: EM131136427

Questions Cloud

Develop a list of database management system capabilities : Develop a list of database management system capabilities to compare these systems. Develop your criterion and definitions in a table that lists the criteria, your definition, and your rankings.
Persuasive argument-how safe is safe : You work in the Customer Service department at Greenlawn, a company that applies chemical fertilizers, herbicides, and pesticides to lawns. Recently, Greenlawn received a letter from Gwen Smith, a customer with a five-year-old child and an infant.
Is this type of activity important in us political : Is this type of activity important in U.S. political and civic life? Explain your response and give at least two additional examples of how a person can participate in a democratic society
Complete the financial plan document : Which aspect of the industry (customers, competitors, suppliers) may create the greatest risk for your business? Explain.
Why the equilibrium levels of output are unaffected : Explain first why the equilibrium levels of output and the interest rate are unaffected. Then show whether the current account improves or worsens as a result of the increased government purchases of goods and services.
How the situation relates to at least one amendment : Discuss whether you think any limitations to their activities would be reasonable and why. Include an explanation of how the situation relates to at least one amendment in the Bill of Rights
Define the primary key for each of your entities : Define the primary key for each of your entities/classes. To assign the primary key consider the rules for primary keys from the virtual lecture for assignment 1.
What can be done to trigger this depreciation : Your country is in recession. You feel that a policy of exchange rate depreciation will stimulate aggregate demand and bring the country out of the recession.
Income statement for summers cruise company : Prepare the 2010 income statement for Summers Cruise Company. E1-16 Presented below is information related to the sole proprietorship of Kevin Johnson, attorney.

Reviews

Write a Review

Econometrics Questions & Answers

  A consumer of two goods faces positive prices for both

a consumer of two goods faces positive prices for both goods and has positive income. her preferences over consumption

  Define what happens to the level of gross debt

Now suppose that the gross national debt initially is equal to $2.5 trillion and the federal government then runs a deficit of $100 billion: i. What is the new level of gross national debt ii. If 100 percent of this deficit is financed by the sale o..

  What is joshs bonus if the companys marr is given

Josh Ritchey has just been hired as a cost engineer by a large airlines company. Josh's first idea is to quit giving complimentary cocktails, wine, and beer to the international flying public. He calculates this will save 5,000,000 drinks

  What is the growth rate of aggregate capital in the long run

The golden rule capital per worker k^GR is the level of capital per worker that maximizes consumption per worker at the steady state. Write the expression of the steady state consumption per worker c* as a function of k and derive the golden rule ..

  Write down the unit cost of producing one yard of cloth

How much cloth and food will the economy produce after this increase in its capital supply? Describe how the allocation of machine-hours and work-hours between the cloth and food sectors changes. Do those changes conform with the changes described ..

  Determine the marginal benefit and marginal cost

How do you determine the marginal benefit and marginal cost of the decision? You should illustrate your answer with a numerical example. Why do economists believe that managers should use marginal analysis to make optimal business decisions?

  Engaged in cournot competition

There are two firms in an industry, engaged in Cournot competition. The firms compete repeatedlyin successive time periods. Occasionally, one of the firms is required to produce a certain amount(due to production constraints). This amount is known to..

  How variable costs for exquisite portraits inc

paid $200 for business cards, $1,000 for a listing in yellow pages, and $250 for an annual business license. She also leased a professional portrait camera and studio lighting equipment by signing an agreeement to pay a monthly lease of $1000 per ..

  How many hours of labor should xyz hire to maximize profit

Firm XYZ measured its MP of labor curve. XYZ produces gadgets that are sold for $20 each and is able to hire workers for $10 per hour. How many hours of labor should XYZ hire each day to maximize its profits.

  Find the coefficient of determination

Based on a sample of 30, suppose we estimate a regression model and find b1=8.4, SSR=128, SSE=286 a) Find the coefficient of determination (R^2) b) Test at the 10% significance level against the two sided alternative the null that B1=0

  What quantity minimizes average total cost

What quantity minimizes average total cost? What quantity maximizes profit? What price maximizes profit? What is the maximum profit? What is marginal cost when quantity = a, your answer in question 4? What is the socially efficient quantity?

  Suppose a firms production function is given by q l12k12

suppose a firms production function is given by q l12k12. the marginal product of labor and the marginal product of

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