Answer to Question #247714 in Macroeconomics for shon

Question

Please respond to each of the following. Be sure to make full use of graphs, and equations where applicable.

Question 1

Describe the reaction of MPK and full employment if the following events occur in the Bahamas.

a. The deportation of all illegal migrants from around the Bahamas.

b. The Moody’s report on direct foreign investment and consumer confidence.

c. The implementation of payment for the travel visa and Covid-19 testing

Question 2.

The FNM government prior to the 2021 general election, introduced a school lunch program that covered all public-school children. Assume that this program is temporary and only lasted eight months. For a constant level of output, what impact would this program have on desire consumption and desire national saving

Answer 1

Question 1

a. The deportation of all illegal migrants from around the Bahamas will lead to reduced marginal product of capital and full employment.

b. The Moody’s report on direct foreign investment and consumer confidence will lead to reduced marginal product of capital and full employment.

c. The implementation of payment for the travel visa and Covid-19 testing will lead to reduced marginal product of capital and full employment.

2.

Increased government spending on the school lunch program will will reduce the national saving.