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If planned gross investment is $100 billion, expected government expenditures are $300 billion. What is equilibrium GNP?
Explain what is meant by planned saving and planned investment. What happens to aggregate income when planned saving is equal to planned investment?
In the Keynesian view, what are the major determinants of investment? What is the major determinant of aggregate consumption?
Explain in your own words why the equilibrium level of income will decline when planned leakages are in excess of planned injections.
Write a short essay explaining the logic of Keynesian theory of the business cycle. Incorporate both multiplier and accelerator principles into your discussion.
Calculate the change in equilibrium GNP that would be stimulated by autonomous increase in gross investment of 50 in an economy with a fairly stable MPC of 2/3.
Assume that a government increases expenditures by $50 billion, while increasing taxes by $30 billion. What direction and by how much should GNP change?
Calculate equilibrium GNP for an economy in which planned gross investment is $200 billion; expected government expenditures are $300 billion.
Why should only production of final goods and services be counted? How does MEW differ from GNP? Is it an improvement? Why?
What are some of the deficiencies of GNP as a measure of aggregate output? Why do national income accountants not correct these shortcomings?
Explain the difference between the money GNP and real GNP. Does it make any difference which of the two is used to gauge economic activity?
What are the major sources of federal tax revenues? State revenues? Local revenues? Who bears the burden of a payroll tax?
Write a short campaign position paper outlining your platform on government spending and taxation policy.
What are public goods? Why might the market be unable to produce a sufficient quantity of public goods?
List as many goods as you can think of that have substantial public good characteristics that are provided by the private sector.
In an effort to control rising prices during 1970s, many governments fixed prices for extended periods of time. Discuss economic repercussions of fixed prices.
How does the pricing system ration goods? How does it offer suppliers an incentive to produce goods that are most scarce, relative to their cost.
What impact would the higher fees have on the Scheduling of flights and Number of landings and takeoffs during heavy traffic periods?
Create your own scenario and schedule for a 6-month or 12-month project. Include the five process groups, but focus on key tasks for executing the project.
Show how an expansion in the central bank's domestic assets ultimately affects its bal. ante sheet under a fixed exchange rate.
Analyze a transitory increase in the foreign interest rate, A. Under which type of exchange rate is there a smaller effect on output-fixed or floating?
Suppose the central bank of a small country is faced by a rise in the world interest rate. R. What is the effect on its foreign reserve holdings?
What are the con-sequences for analyzing the relationship between growth in the world stock of inter-national resents and worldwide inflation?
Why will the marginal utility per dollar spent not necessarily be equal for all goods at a corner point?
Under which exchange rate regime would you expect the gains from international asset trade to be greater, fixed or floating?