QUESTION According to the IS-LM model, what happens to the interest rate, income, consumption, and investment under the following circumstances? Be sure to label: i. the axes; ii. the curves; iii. the initial equilibrium values; iv. the direction the curves shift; and v. the terminal equilibrium values. (a). Suppose that a rise in consumer confidence in the economy induces consumers to save less for the […]

QUESTION Suppose Diamond is a fan of young-adult fiction and buys only young-adult books. Diamond deposits $3,000 into a savings account that pays an annual nominal interest rate of 15%. Assume this interest rate is fixed, and so it will not change over time. On the day she makes her deposit, suppose that a young-adult book has a price of $15.00. Initially, Diamond’s $3,000 deposit […]

QUESTION Regarding the United States’ current Economic outlook, there are currently two main sources of uncertainty: (1) the Federal Reserve (FED) Interest rate increases and (2) the looming possibility of a recession. Assume that you are making decisions regarding business investment in this environment. Based on information in the news/government reports, we have the following probability of each of the four possible scenarios. Scenario Probability FED lowers […]

QUESTION When Jean Chretien’s first term of office as Prime Minister began in 1993, Canada had come through some difficult economic times. There had been a severe recession in 1991 and slow growth in 1992, and even in 1993. In addition, the federal government had an enormous budget deficit. Suggest a policy or policy mix to reduce or eliminate budget deficit while keeping output constant. […]

QUESTION Briefly present the views of the most influential economists namely John Maynard Keynes, Milton Friedman, and Adam Smith and note the overlap and differences between Keynesian, Monetarist, and Classical economics that they represent, respectively. Which view of economics do you believe best represents the U.S. and the Monetary Theory in practice. ANSWER Economic Philosophies and Their Application in the United States: Keynesian, Monetarist, and […]

QUESTION Increasing GDP per capital has been a relatively recent phenomenon in human civilization. During any time period prior to 1800, the large majority of the world’s population lived in extreme poverty. Only after 1800 has there been sustained improvement in labor productivity. Data show a correlation between improved labor productivity and increasing real GDP per capita (adjusted for purchasing power parity) across countries in […]

QUESTION In this individual assignment you will discuss the current inflation in the U.S. and evaluate a new approach to price control, the “Imput-Output model“.  Please listen to the podcast from the Odd Lots “Isabella Weber: A new way to think about inflation“, and conduct your own research to discuss the questions below. https://podcasts.apple.com/us/podcast/isabella-weber-on-a-new-way-to-think-about-inflation/id1056200096?i=1000595391723 Questions: 1. Please look at the most recent U.S. inflation data […]

QUESTION 1. If Sydney Water that supplies water to households wants to increase efficiency in household water use, should it charge a flat-rate or flat-fee for pricing water? Why? 2. In the future precipitation levels may be reduced by climate change and water scarcity will grow in many regions of Australia. Question is if our institutions will provide an efficient response to this problem. To […]

QUESTION In a Keynesian framework, which of the following government policy choices offer a possible solution to a recession? Which offer a possible solution to inflation? Explain your answers using Aggregate Demand/Aggregate Supply. A tax increase on consumer income A surge in military spending A reduction in taxes for businesses that increase investment Major reduction in what the U.S. government spends on health care outlays […]

QUESTION Lack of lunch or break rooms for staff. Re: [Your subject] Dear [Boss’s Name], I am writing this proposal to address a workplace problem that I have identified and propose a solution that can be implemented with a small to moderate financial investment. By proactively identifying and solving problems, we can contribute to the overall efficiency and success of our organization. Problem Identification After […]