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Macroeconomics
What is a formula to calculate broad labour force survey?
Macroeconomics
In the broadest possible terms, an economy can face two possible problems - recession and excess inflation. Using your knowledge of fiscal and monetary policy, which do you think is more effective in dealing with each of these problems?
Macroeconomics
The economy has seen the unemployment rate decrease from 8.56 percent to 6.15 percent, the inflation rate increase from 1.4 percent to 3.2 percent, and there has been a 17 percent increase in consumer spending and a 22.5 percent increase in investment spending in the same time period.
a. Given the above, what would you predict about the overall direction of the economy? Explain your answer by referring to each of the indicators cited.
b. Describe the fiscal policy that will already be automatically operating, as well as the appropriate discretionary fiscal policy that the government should adopt, given the above situation.
c. Describe the appropriate monetary policy that the Bank of Canada should be operating, given the above situation.
a. Given the above, what would you predict about the overall direction of the economy? Explain your answer by referring to each of the indicators cited.
b. Describe the fiscal policy that will already be automatically operating, as well as the appropriate discretionary fiscal policy that the government should adopt, given the above situation.
c. Describe the appropriate monetary policy that the Bank of Canada should be operating, given the above situation.
Macroeconomics
In 2003 to 2004, the Canadian dollar appreciated against the US dollar. Explain the effects of this appreciation on each of the following.
a. Canadian importers of goods from the US
b. Canadian firms that sell commodities to US buyers
c. American tourists who come to Canada
d. US investors who had purchased Canadian securities prior to this currency appreciation
a. Canadian importers of goods from the US
b. Canadian firms that sell commodities to US buyers
c. American tourists who come to Canada
d. US investors who had purchased Canadian securities prior to this currency appreciation
Macroeconomics
Calculate the strict labour force participation rate
Macroeconomics
Hi
I've just done an exam and a big question was show the new equilibrium output of an effect of a fall in world income. It asked to show using
A) fixed exchange rate
B) flexible exchange rate
I've drawn 2 diagrams. For the fixed exchange rate I talked about the drop in world income and the IS schedule shifting to the left. This meant an incipitent capital outflow and bop deficit. So to prevent depreciation the central bank buys currency on the foreign exchange market. As a result of the reduction in the money supply the LM shifts left. The new equilibrium point being y', r'. However I'm confused about the flexible diagram. Using the flexible exchange rate I drew the diagram showing the IS schedule moving back to the original equilibrium. There is thus crowding out effect. The flexible exchange rate being ineffective. I can show an image if needed not the diagrams i drew. Please can someone let me know if these digrms we're correct asap. Thanks so much
I've just done an exam and a big question was show the new equilibrium output of an effect of a fall in world income. It asked to show using
A) fixed exchange rate
B) flexible exchange rate
I've drawn 2 diagrams. For the fixed exchange rate I talked about the drop in world income and the IS schedule shifting to the left. This meant an incipitent capital outflow and bop deficit. So to prevent depreciation the central bank buys currency on the foreign exchange market. As a result of the reduction in the money supply the LM shifts left. The new equilibrium point being y', r'. However I'm confused about the flexible diagram. Using the flexible exchange rate I drew the diagram showing the IS schedule moving back to the original equilibrium. There is thus crowding out effect. The flexible exchange rate being ineffective. I can show an image if needed not the diagrams i drew. Please can someone let me know if these digrms we're correct asap. Thanks so much
Macroeconomics
Which of the following statements helps to explain why the economy can be slow to recover from a recession?
Workers are less motivated because of reduced expectations, which reduces total output.
There is not as much money in circulation to fuel new investment.
Wages do not fall quickly, which delays an adjustment to a higher output level.
Aggregate supply shifts inward proportionately, which leads to a “vicious cycle.”
Workers are less motivated because of reduced expectations, which reduces total output.
There is not as much money in circulation to fuel new investment.
Wages do not fall quickly, which delays an adjustment to a higher output level.
Aggregate supply shifts inward proportionately, which leads to a “vicious cycle.”
Macroeconomics
Which of the following is not a tool of fiscal policy?
Government spending
Taxes
Tax incentives
Private investment
Government spending
Taxes
Tax incentives
Private investment
Macroeconomics
An open macroeconomic model is represented parametrically as follows
Y= C0 +Io+Go+X0-M, M=mo+m1yd,C=co+c1yd, T=tY and Yd=Y-T
(i) Compute the equilibrium income
(ii) Derive any three multipliers
(iii) Interpret the multipliers and explain their significance in policy context
Y= C0 +Io+Go+X0-M, M=mo+m1yd,C=co+c1yd, T=tY and Yd=Y-T
(i) Compute the equilibrium income
(ii) Derive any three multipliers
(iii) Interpret the multipliers and explain their significance in policy context
Macroeconomics
Explain in theory how Fiscal and Monetary policy can complement each other to achieve domestic economic stability. Analyse how and whether fiscal and monetary policy settings over the past two years may provide for the achievement of domestic stability.
