In light of recent events, in an open economy like the US, assuming a zero current account balance. What happens to investment, real interest rates, current account balance and national saving of the US economy with the following events? a. The US Congress and Mr. Obama introduce a "buy only American" policy in its legis
Discuss the properties of the Aggregate Demand Aggregate Supply model and how fiscal policies shift the curves and affect the macro economy.
A). In the basic supply and demand analysis, we usually look at the demand curve and the supply curve for one commodity in a market. When we look at the macro economy, the corresponding terms are called Aggregate Demand (AD) and Aggregate Supply (AS). What do these two curves AD and AS represent and discuss their properties.
Measuring Economic Health Memo Prepare a 350-700-word memo addressing the following: a. Describe the use of Gross Domestic Policy (GDP) to measure the business cycle. b. Describe the roles of government bodies that determine national fiscal policies. c. Explain the effects of fiscal policies on the economy's producti
In 2003, the Internal Revenue Service began to mail out refund checks because of a change in the tax law. Economic forecasters predicted that consumption and GDP would increase because of higher refunds on income taxes. Pretend as if you are an economist and explain your thoughts on whether the tax cuts from the past few yea
What kind of gap?inflationary or recessionary?will the economy face after the shock, and what type of fiscal policies would help move the economy back to potential output?
3. An economy is in long-run macroeconomic equilibrium when each of the following aggregate demand shocks occurs. What kind of gap?inflationary or recessionary?will the economy face after the shock, and what type of fiscal policies would help move the economy back to potential output? a. A stock market boom increases the value
Task: Write a response explaining why time lags in discretionary fiscal policy can adversely affect the efforts of the Congress and the President in attempting to maintain a healthy economy. Could it happen that these time lags could actually work to destabilize the economy? Objective: - Identify current trends in macro
Write a response in APA format that provides an economic profile of the trucking industry. Discuss how the following impacts this industry. Include at least eight sources, two for each topic. Include the APA-formatted references and a summary of the major points in the articles or web sites. o Shifts and price elasticity of
Please help with the following problem. Provide at least 300 words in the solution. How have US economic or fiscal policies affected employment rates? What US economic or fiscal policies might affect the growth or decline of the automotive industry? Have US economic or fiscal policies affected the pricing of autos?
Can anyone help clarify? All I need are a couple of sentences to explain these questions. 1. What is the final impact of contractionary fiscal policy on the price-level and real output? 2. What is the final impact of expansionary fiscal policy on the price-level and real output? 3. What are the impacts of an easy mo
Explain the pros and cons of using a change in the tax rate to achieve the desired increase in output. Be sure to thoroughly explain how the change will affect equilibrium prices, output, and unemployment. Explain the pros and cons of using a change in open market operations to achieve the desired increase in output. Be sure
Suppose the tax rate on interest income is 25 percent, the real interest rate is 4 percent, and the inflation rate is 4 percent.
* 1. Suppose the tax rate on interest income is 25 percent, the real interest rate is 4 percent, and the inflation rate is 4 percent. In this case, the real after-tax interest rate is a. .5% b. 3.5% c. 4.0% d. 2.0% * 2. With a steep short-run aggregate supply curve, a. an increase in government spending will not hav
Suppose the economy is suffering from a recession. What policies would you implement to help the economy reach full employment?
Suppose the economy is suffering from a recession. What policies would you implement to help the economy reach full employment? What are the benefits and shortcomings of these policies?
Determine whether each of the following is an example of the automatic fiscal stabilizer. A) As the economy starts to recover from a recession & more people go back to work, government-funded unemployment compensation payments begin to decline. B) To stem an overheated economy the president, using special powers granted by
Part I Determine whether each of the following is an example of a discretionary fiscal policy action. Give reasons to support your answer. a. A recession occurs, and government-funded unemployment compensation is paid out to laid-off workers. b. Congress votes to fund a new jobs program designed to put unemployed workers to
Depreciation calculation methods. Kleener Co. acquired a new delivery truck at the beginning of its current fiscal year.
I'm have big problems in this class and I get my answers but not exactly. I want to make sure that I am doing it correctly. I know first one is SL=26,000/8 years Depreciation calculation methods. Kleener Co. acquired a new delivery truck at the beginning of its current fiscal year. The truck cost $26,000 and has an est
12. Explain how fiscal policy may possibly affect the short-run aggregate supply curve. 13. How does classical economics explain its confidence in the ability of natural forces to return the economy to its potential level of real GDP? 14. What were the reasons for establishing the Federal Reserve System as 12 Reserve banks r
How can fiscal policy be used to correct a recessionary GDP gap? What are some complications?
Who is the chairman of the Federal Reserve Board. What is his background? What does he believe? How effective has he been?
I need some assistance with the following for my Economics for Business class: 1.True or false: The Federal Reserve Board is the nation's number one inflation fighter. Discuss why. 2.Who is the chairman of the Federal Reserve Board. What is his background? What does he believe? How effective has he been? Discuss further.
I need help with understanding fiscal policy and the concerns on which the US government bases its spending and taxation decisions. Also why dosen't an increase in aggreate demand translate into an increase in real GDP?
How does the following impact the housing industry? Shifts and price elasticity of supply and demand Positive and negative externalities Wage inequality Monetary and fiscal policies How the economy affects the success of the housing industry Economic influences that can affect the housing industry in a negative way
What recommendations would you make to Congress and the President for the management of fiscal policy in the next few years? Why?
*Research the Oil/Petroleum industry's price elasticity of supply and demand. - Is price elasticity of demand considered elastic or inelastic? - Are there substitutes available - Is the good a luxury or a necessity - What is the price elasticity of supply *Research any negative o
What is the role of Federal Reserve System and of the fiscal policy of the government?
Congratulations! You've just been appointed chairman of the Council of Economic Advisors in Textland. The mpe is 0.8. There is recessionary gap of $400. a. The government wants to eliminate the gap by changing expenditures. What policy would you suggest? b. Your research assistant comes running in and tells you that in
Given the following equations: C=500 +0.8(1-.025y) I = 900-50r G=800 T = 100 X = 350 M = 150+0.15y M/P = 500 L = .25y-62.5r Find a)AE equation b) IS curve c) LM curve d) equilibirum Y d) trade balance e)gov't budget f) what happens if g rises to 900? g)what is there is an increase in the supply of money?
Go to: http://www.publicdebt.treas.gov/opd/opd.htm What is the total amount of U.S. government debt as of the time you look it up? How much is "held by the public"? How much is "Intergovernmental Holdings" and what does that mean? What are your thoughts on the U.S. debt? Would you make a "gift contribution" to hel
What were the effects of the changes in fiscal policy in the simulation - Explain what happened in the simulation as you raised and lowered spending and income tax rates Describe how inflation, unemployment, and popularity were affected by at least three different configurations of spending and taxation. For example one co
____ 1. Which of the following would cause both the equilibrium price and equilibrium quantity of cookies to decrease? a. a rise in the price of milk (a complement) b. a rise in consumer incomes c. a rise in the price of cookie dough d. a drop in the price of cookie dough e. a rise in the price of cracker
1. Suppose you read in the newspaper that last week the Fed conducted open market purchases, and that on Tuesday of last week it lowered the discount rate. What would you say the Fed was up to? Describe the most likely economic condition of the economy. 2. What three tools can the Fed can use to change the money supply? Whic
What are some obstacles to successful international economic policy coordination? this is for economic policy.
Upon your return home, you receive an invitation to speak to a class at the local high school. You are to be part of a panel of three local people considered to have experience in international business. The question you are assigned to answer is "What are some obstacles to successful international economic policy coordination?"