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

Production possibility curve, PRODUCTION POSSIBILITY CURVE As we have s...

PRODUCTION POSSIBILITY CURVE As we have seen, the essence of economic analysis is the problem of scarcity and choice. We know that limited productive resources compel individua

Investment banks underwrite ipos, When investment banks underwrite IPOs, th...

When investment banks underwrite IPOs, they are typically sell stock for 5-10 percent more than they pay for it. When they underwrite stock for companies that are already public, t

Reimbursement affect the number of admissions, How will each of the followi...

How will each of the following bases for hospital reimbursement affect the number of admissions, the average length of stay, the volume of services per day, and the unit cost of se

What is social cost benefit analysis, It refers to the study of feasibility...

It refers to the study of feasibility of a project in terms of its total economic cost and total economic advantages. It means to compare total cost with total advantage if we

List of major emerging-market economies, List of major emerging-market econ...

List of major emerging-market economies To determine if the UK is to benefit from growth of emerging-market economies in the future, it should start exporting goods and specif

Public sector, Are there any current subsidy or welfare issues that are bei...

Are there any current subsidy or welfare issues that are being discussed or addressed in parliament or in municipalities

Aggregate demand and aggregate supply, Find one or more articles in the wal...

Find one or more articles in the wall street Journal or other business publications that describe changes in fiscal or monetary policies in the United States. Discuss how these pol

Define the fisher equation, Define the Fisher equation Fisher equation ...

Define the Fisher equation Fisher equation is: Money supply (stock of money) x velocity of circulation of money = price level x total transactions in the economy or     MV =

Define gdp, A farmer grows a bushel of wheat & sells it to a miller for Rs....

A farmer grows a bushel of wheat & sells it to a miller for Rs. 1.00. The miller turns the wheat into flour & then sells the flour to a baker for RS. 3.00. The baker uses the f

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