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Computing the short-run profit maximizing level of labor and capital demand. Describing the impact of fiscal stimulus on aggregate demand, tradeoff between fiscal stimulus and inflation.
Elucidating the Keynesian and Classical views of salary cutting policies, shift in the IS- LM curves, stagflation and new classical view.
Illustrate what are the tools of fiscal policy also explain how are they used to manage Aggregate Demand and what are the policy goals.
The nominal interest rate is 12%. Illustrate what policies do you undertake. What is your justification for your choice.
Explain how the use of money has changed over the past 20 years. Demonstrate an awareness of contemporary economic issues.
Calculating the AE function and plot it in a diagram.What is total autonomous expenditure.
Illustrate what is the effect on the level of equilibrium nationalincome. Its effect on the level of equilibrium nationalincome.
Now Assume household wealth increases from10 000 to 15 000. Illustrate what would happens to the AE function and by how much does national incomechange.
Illustrate how can employment rate may go-up or down in the unemployment rate stays the same. Explain how can employment rate go up if unemployment rate also goes up.
Elucidate the maximum possible levels for deposits and loans also what would occur if the reserve requirement were raised.
Illustrate how is monetary policy used to control inflation also explain how is monetary policy used to increase the level of employment.
Illustrate what is the difference among changes in Aggregate Supply and Changes in potential GDP.
Estimation of equilibrium income using IS - LM model. Find out the equilibrium values of r, Y,C I, Xn, Md and T from these equations.
Elucidating the short run and long run impact of fiscal policies on relevant macroeconomic variables.
If rise in government spending and tax cuts were similarly effective in stimulating aggregate demand, which fiscal tool would you select.
Explain how much is the government's budget deficit. The government attempts to balance its budget by reducing its spending equal to the deficit.
Illustrate what is the multiplier on government spending Tax cuts. Utilizing the facts above, find equilibrium output when the government cuts taxes to 50.
Presently, the extent of our economic difficulties has caused the economic policymakers to choose fiscal also monetary policies that are both expansionary.
Elucidate and illustrate the adjustment from short to long-run in (c) in your AD/AS diagram.
What is the value of the marginal propensity to save. Illustrate what is the value of autonomous AE and slope of the Aggregate expenditure (AE).
Elucidate how the Central Bank can set the nominal interest rate in the money market. In addition, explain how it can use expansionary monetary policy to boost GDP if the economy is in a recession.
Illustrate what does it mean to say that private inventories. GDP actually rose among the first and fourth quarters of 2008.
Compute of GDP and its components with the given data.
Elucidating whether the given transactions will be accounted for 2006 GDP. Canadian hobby store for computer geeks that build their own computers.
Discuss if the values of the goods produced are comprised in the 2006 GDP and explain your reasoning.