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

Effect of real wage in classical labour market, illustrate the effects of a...

illustrate the effects of a reeal wage existing in the labour market if it is perfectly competitive

Balance of payment, what causes a shift in the balance of payment?

what causes a shift in the balance of payment?

MEC and MEI, MEC and MEI curvs and their role in economics

MEC and MEI curvs and their role in economics

Liberalisation and changing sources of fdi, Liberalisation and Changing Sou...

Liberalisation and Changing Sources of FDI: European countries  had been major sources of FDI inflows  to India until 1990. However, their relative importance declined in the

Summary of the cross model, Summary of the cross model The below list...

Summary of the cross model The below list summarizes the cross model and associates it to classical model:  Labor Market: Real wages W/P is exogenous in cross model

Financial development in economy, Financial Development A well develope...

Financial Development A well developed financial system is very essential for the smooth functioning of any economy. One set of important statistical indicators that is used to

Describe the short run effect of the supply shock, Question : The long-...

Question : The long-run position of an economy is described by the quantity theory of money: M/P = L (Y, r) Where M: nominal money stock; P: price level; Y: real income a

Probability that the stocks return, Suppose that an individual stock's retu...

Suppose that an individual stock's return is normally distributed with a mean of 11% and a standard deviation of 5%. What is the probability that the stock's return will be less th

The structural deficit, The structural deficit: A. falls as the economy exp...

The structural deficit: A. falls as the economy expands and rises when it contracts. B. changes as actual income changes regardless of potential income. C. does not change when inc

Why are bank deposits money?, Money is anything which is acceptable in sett...

Money is anything which is acceptable in settlement of a debt. But, paradoxically, the main asset used to settle debts in modern economies is other debts. After all, bank deposits

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