assignment, Macroeconomics

Assignment Help:
Consider the economic data for Country A:
Unemployment level of 15%
Natural Rate of Unemployment is 6%.
Required Reserves is 25%
C = 50 + 0.75Y; I = 600; G = 250
(note: T = 200 for purpose of this assignment assume Y = Yd)
Equilibrium GDP = Y = C + I + G
The full employment level of Real GDP is 4,000.
MS = 425
MD = 400 – 500r + 0.75Y
Using the Business Cycle Diagram, show this economy. Label:
The current year as Year A
Full employment level of Real GDP
The current level of Real GDP
The recessionary or inflationary gap
Natural Rate of Unemployment
Use Aggregate Demand and Aggregate Supply to show this economy.
Suggest and show the results of a Fiscal Policy action that will bring this economy to full employment level of Real GDP. Explain the effect on the fiscal budget and show the effect on the Money Market and the Investment Market.
Suggest, and show, a Monetary Policy action that would restore the original equilibrium level of interest. Also show the result of this Monetary Policy action on the Investment Market and the Goods and Services (AS/AD) Market.

Related Discussions:- assignment

Effect which have the bond market, Firms such a Moody's and Standard & Poor...

Firms such a Moody's and Standard & Poor's study corporations that issue bonds. They publish "ratings" for the bonds- evaluation of the likelihood of default. Suppose these rating

What does macroeconomics mean, The study of the overall aspects and working...

The study of the overall aspects and workings of a national economy is like as income, output, and the interrelationship between diverse economic sectors. It is the study of all as

What is globalization, what are its effects on the Indian economy? Ans) ...

what are its effects on the Indian economy? Ans) It is largely positive. Globalization has brought a lot of jobs and large sums of investment to India. India's economy has been

United states postal service, The United States postal service report 95% o...

The United States postal service report 95% of first class mail within the same city is delivered within two days of the time of mailing. Six letters are randomly sent to different

ENC 312, what have you learned from the class

what have you learned from the class

Find the market equilibrium value, Frovea's currency is called the fromark,...

Frovea's currency is called the fromark, and Olympia's currency is called the olymark. In the market in which fromarks and olymarks are traded for each other, the supply of and dem

Archery instructors need a license, Now suppose that the archery instructor...

Now suppose that the archery instructors need a license in order to charge for archery lessons. The license is free of charge, but there are only four licenses distributed. Assumin

Define price elasticity of demand, Suppose arm's demand curve is given by P...

Suppose arm's demand curve is given by P = 120? Find the (value of) price elasticity of demand (point elasticity) for the demand curve when the price is $100. Is demand elastic or

Estimating womens labor supply, 1.    Estimating Women's Labor Supply a....

1.    Estimating Women's Labor Supply a.    The following regression was run for an estimate of the current women's labor supply curve: Where h i = hours of labor suppl

Financial crisis in terms of adverse, Briefly explain the dynamics of the 2...

Briefly explain the dynamics of the 2007 financial crisis in terms of adverse selection and moral hazard.

Write Your Message!

Captcha
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