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Country A is twice as rich as Country B now, In a situation where both the countries have same exact fundamentals (excluding mps) how will their growth rates compare in the long run? Explain your answer.
Can you explain the paper Good and Bad Uncertainty: Macroeconomic and Financial Market Implications (Gill Segal et. al) with math examples?
In a private closed economy, S =$100 + 0.3Y and I = 200. What is the consumption equation ? Determine the value of Y?
Discuss the different transmission mechanisms.
(C, I, G, etc., are being measured in billions and i as a percentage)
C = 0.8(1 − t)Y t = 0.25
I = 900 − 50i = 800
L = 0.25Y − 62.5i
= 500
1. What is the equilibrium interest rate? (Hint: Start by writing the equations for the IS curve and LM curves with the given data points). (0.5 Mark)
2. What is the equilibrium level of income in this model? (0.5 Mark)
3. What is the value of αG which is the simple multiplier with proportional income tax? (1 Mark)
4. By how much does an increase in autonomous government spending of DG =300 increase the level of equilibrium income in this model, which includes the money market? (Hint: Start by writing the IS and LM equations in functional forms). (1 Mark)
5. What is the value of the ultimate fiscal multiplier in the aforesaid case? (1 Mark)
6. By how much does an increase in autonomous government spending of DG = 300 affect the equilibrium interest rate? (1 Mark)
Do you agree that it is economically advisable to hold money for transaction and precautionary motive in time of high inflation
Examine the similarities and dissimilarities between accelerator theory and flexible accelerator theory.
Beginning in 1994, environmental regulations have required that gasoline contain a new additive to reduce air pollution. This requirement raised the cost of gasoline. The Bureau of Labor Statistics (BLS) decided that this increase in cost represented an improvement in quality. a. Given this decision, did the increased cost of gasoline raise the CPI? b. What is the argument in favor of the BLS’s decision? What is the argument for a different decision
1. Misalkan orang hanya mengkonsumsi tiga barang, seperti yang ditunjukkan dalam tabel ini: TENNIS TENNIS BALLS RACQUETS GATORADE 2001 berharga $ 2 $ 40 $ 1 2001 nomor 100 10 200 2002 harga $ 2 $ 60 $ 2 2002 nomor 100 10 200 a. Berapa persentase perubahan harga masing-masing dari tiga barang? Berapa persentase perubahan dalam tingkat harga secara keseluruhan? b. Apakah raket tenis menjadi lebih atau lebih murah dibandingkan dengan Gatorade? Apakah kesejahteraan beberapa orang berubah relatif terhadap kesejahteraan orang lain? Menjelaskan.
