assignment help, 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 help

Exam, real gdp measures?

real gdp measures?

plot the aggregate demand, The economy of Mainland has the following aggre...

The economy of Mainland has the following aggregate and aggregate supply schedules:                               Real GDP Demanded                         Real GDP Supplie

Combination, take one set ( lk& output) to prove

take one set ( lk& output) to prove

Groth model, what role does interst rate play in refernce to output?

what role does interst rate play in refernce to output?

How is economics work with interaction of individual choices, How is econom...

How is economics works with interaction of individual choices? Principles behind the interaction of individual choices: 1. There are gains through trade. • Specialization

Strategic vs. tactical approaches, Consider Gold-Bernstein's Integration ro...

Consider Gold-Bernstein's Integration roadmap (p. 18).  Construct two business examples, one that clearly calls for a strategic integration effort and the other that call

Business cycles, Business Cycles  Economic growth is not a continuous p...

Business Cycles  Economic growth is not a continuous process. Superimposed on the long-term trends are short-term fluctuations in the levels of economic activity and\or in grow

Wage rate increases, A person chooses between leisure and consumption. All ...

A person chooses between leisure and consumption. All of their consumption comes from current income. The utility derived from any combination of leisure and consumption is given b

Monetary Policy.., Suppose the banking system has reserve of $750000, deman...

Suppose the banking system has reserve of $750000, demand deposits of $2500000 and a reserve requirement of 20%. a. if the fed now purchases $125,000 worth of govt bonds from the

Find the equivalent array-array factor, A 90 o perfectly conducting corner...

A 90 o perfectly conducting corner cube reflector has a shortdipole (oriented in the z-direction) placed at a distance d from the vertex. The antenna is fed by current Io. a) 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