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Macroeconomics

Monetarists and Keynesian

1. Contrast the Keynesian and Monetarist views on how a change in the money supply impacts the economy?explain 2.Discuss the determinants of the equilibrium interest rate and how it may change.explain 3.Contrast the Keynesian and Monetarist views on the effectiveness of fiscal policy? explain

GDP, CPI and Unemployment

Use the table below: Value in billions Personal consumption expenditures $1000 Gross private domestic investment $500 Net exports $300 Imports $180 Government purchases of go

Current state of the economy

1) What is the inflation rate? Is inflation a worry, or are we in a period of stable prices? 2) What is the unemployment rate? Will a high unemployment rate cause deflation? What is the current structure of the labor market? How does the current structure affect the threat of cost push inflation or deflation? 3) What is th

Circular flow model, GDP, Business Cycles and Unemployment

Please help with the following questions. 1. Using the basic circular flow model, explain why the value of businesses' output of goods and services equals the income of households. Suppose the U.S. nominal GDP increases form one year to the next year. Can you conclude that these figures present a misleading measure of ec

Business and Consumer Expectations Concerning Monetary Policy

Explain why business and consumer expectations about the economy are more important when the Fed uses expansionary monetary policy then contractionary monetary policy. Be specific by explaining how monetary policy works to either increase or decreases GDP.

Calculating percentage change in an index

The consumer price index is a fixed-weight index. It compares the price of a fixed bundle of goods in one year with the price of the same bundle of goods in some base year. Calculate the price of a bundle containing 200 units of good X, 150 units of good Y, and 100 units of good Z in the years 2011, 2012, and 2013. Then answer

Transactions that contribute to GDP

Which of the following transactions would not be counted in GDP? Explain your answers. 2) American airlines merges with US Airways 3) Walmart's inventory decreases. 4) You buy 5 quarts of oil and change the oil in your car. 5) You make $200 from a garage sale 6) Subway buys cheese to make subs 7) You buy a new textbook 8)

Global economy in 1998

2. There are many views of the state of the global economy in the late summer-early fall of 1998. Below are some of these views. From your reading of Commanding Heights (Yergin and Stanislaw), current news accounts, research into various economies and Macroeconomics (Dornbusch and Fischer), critically analyze these statements as

Effect of an event on the U.S. economy

Give an example of an event or incident that has taken place in the U.S. economy which has a major economic impact--be specific, e.g., 9/11 attack, natural disaster, rise or fall in oil prices due to OPEC policies, consumer optimism or pessimism about an expected economic expansion or downturn, increase in government spending on

Asian Economies 97-98 & 2008 Recession

Why did people believe the difficulties Asian economies were experiencing in 1997-1998 might bring a recessionary gap to the United States? In dealing with the recession of 2008, why is it important for the Fed and Congress to coordinate monetary and fiscal policy measures?

Macroeconomics Discussion

For the Portfolio Project, I am required to conduct an analysis of a recent article, less then 5 months old and provide an evaluation and outcome expectations in a written response that discusses: I need assistance first * Locating an article ( example) that would meet the criteria below: ***A minimum of three general ec

Opportunity costs - fixed or variable?

As a student, what opportunity costs do you confront by enrolling in University of Phoenix's MBA program? Does your organization or an organization with which you are familiar consider opportunity costs when evaluating strategic opportunities? For your organization, are opportunity costs fixed costs, variable costs, both, or nei

Corporate Finance Concepts

What concepts are shown in Corporate Finance? Which concepts are more prevalent in the business world today? How are the concepts incorporated in the day to day business?

Macroeconomics Questions (policy, laffer curve, MPS etc.)

Thank you for any help that you can provide. I've stated the questions below: 1. Describe the two key tools of monetary policy, and describe how they would be used by the Bank of Canada to implement a contradictory monetary policy. 2. The economy of Kenya is in recession, and the recessionary gap is large. The World Bank h

Excess Reserves and the Money Multiplier

Calculate the required numbers given the following information: (1) If the reserve ratio requirement is 5%, what is the money multiplier? ___________ (2) If the total deposits in the banking system are $250 million, what aggregate amount of dollars must be held by the Fed for all banks? ______________ (3) What is the a

Calculating Change in Spending

Given that the marginal propensity to consume (MPC) is .875: (1) What is the marginal propensity to save (MPS)? (2) Calculate the spending multiplier. (3) If the government stimulates the economy via new spending of $150 million: (a) What is the total projected spending that this could generate throughout the economy

Calculating Real Prices, GDP and Wages

Assume a basket of products cost $5 million in the base year and the following is true in 2012: The same basket of products cost $8 million in 2012 GDP = $14.4 trillion money wages = $96,000/year the price of gas = $2.80/gallon the money supply = $1.6 trillion Now determine the following and explain: a. Price Index

Implementing Pricing Strategies

Two companies, Company A and Company B, are deciding whether each should implement a new pricing strategy, which may or may not result in a price war. If both companies reduce (discount) their current prices, each company will end up with $175K in revenues for the month. If neither company discounts its current prices, eac

Advanced Pricing Techniques - Black Diamond

Answer the following questions based on the following situation: Black Diamond Tennis & Golf Club offers golf and tennis memberships to the residents of Black Diamond, Ohio, in which there are two types of families: golf-oriented families and tennis-oriented families. There are 100 golf-oriented families and 100 tennis-orie

Taxi Industry Medallions

Many cities regulate the taxi industry by licensing cabs. These licenses are often called medallions because they are issued in the form of a metal shield that must be affixed to the hood of the cab, where enforcement officials can easily see it. Furthermore, most cities regulate the fares that taxis can charge, while taxi medal

Calculations Based on Expected Cash Flows

The XYZ Company has estimated the expected cash flows [in thousands] for 1996 to be as follows: Probability Cash Flow 10 10 15 140 50 150 15 180 10 210 Calculate: a

Gross Domestic Product Measurement

I understand that Gross Domestic Product (GDP) is the broadest measure of output for an economy. But what exactly is GDP and what does it measure? Also, I am having trouble finding the limitations of GDP as a measure of well-being and welfare of a nation. Thank you.

GDP Comparisons

Why is the USA's GDP so much higher than that of Mexico's? Would the same reasons apply when we compare the USA's GDP to Canada's GDP?

Engineering Economics

Please refer attached file for complete details. 1. The value of P (The present worth) is most nearly $ 367 $ 371 $ 377 $ 386 2. The value of P (the present worth) is most nearly: $80 $83 $85 $89 3. The value of Q is most nearly $193

All about opportunity cost

What is an opportunity cost? Why do economists consider opportunity costs? Provide an example of at least three possible opportunity costs of setting aside a mountain wilderness as a wilderness area and sanctuary for an endangered flowering plant.

How many days of advertising should Nail Mania buy each week?

Assume Nail Mania advertises in the local newspaper. Each day it advertises costs $100. Over the past several months, Nail Mania has conducted market research and developed the following information Number of days advertised per week Number of customers per week 0