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Macroeconomics
a) If the U.S. continually sold dollars, what would happen to its stock of foreign reserves?
Macroeconomics
What policy action would the Fed carry out to increase the nation's money stock. How would this work? Why might this fail?
Macroeconomics
Consider the following cases of government intervention: regulations to limit air pollution, income support for the poor, and price regulation of petroleum products. For each case,
(a) Explain the market failure and
(b) Describe a government intervention to treat the problems.
(a) Explain the market failure and
(b) Describe a government intervention to treat the problems.
Macroeconomics
yt=mt - pt- ψ(yt-y*)
mt= m(bar) + εt
yt= γ(pt- E(t-1) pt )
Where εt ~ N(0,σ_ε^2)
Where y, p and m are logs of real output, prices and the money supply respectively and εt is monetary shock.
I know how to solve a similarr model without the - ψ(yt-y*) but the addition of - ψ(yt-y*) confuse me.
I hope that I can be pointed in the correct direction so I can attempt to solve it on my own.
Thank you.
mt= m(bar) + εt
yt= γ(pt- E(t-1) pt )
Where εt ~ N(0,σ_ε^2)
Where y, p and m are logs of real output, prices and the money supply respectively and εt is monetary shock.
I know how to solve a similarr model without the - ψ(yt-y*) but the addition of - ψ(yt-y*) confuse me.
I hope that I can be pointed in the correct direction so I can attempt to solve it on my own.
Thank you.
Macroeconomics
Make a comparison and show differences between the fixed nominal wage, the fixed price and the classical model. Write if money is neutral and the cyclicality of salaries and prices and why. Which result is agreeable with the Great Depression?
Macroeconomics
If you wanted to decrease aggregate demand what economic policy would be used for:
Consumption demand
Investment demand
Net exports
Consumption demand
Investment demand
Net exports
Macroeconomics
The reserve bank of Australia has just raised interest rates. Why did the bank do this? What is their overriding objective?
Macroeconomics
Below is the hypothetical statistics for a simple economy in million pounds.
The table gives hypothetical figures for consumption, savings, taxes, imports, investments, government spending and exports at different valves of national income for a simple economy. All the assumptions according to Keysian simple economic model are holding. Marginal propensity to consume is 0.8 marginal propensity to import is 0.2.
Y C S T M I G X TOTAL INJECTIONS TOTAL WITHDRAWAL AGGREGATE DEMAND
10 2 8 4 4
20
30
40
50
60
KEY:
Y: Income M: Imports
C: Consumption I: Investment
S: Savings G: Governmet
T: Tax X: Export
a)
i. Mention only three of the assumptions form the model. (3 marks)
ii. Calculate the marginal propensity to serve for the model. (2 marks)
b) Determine the values for consumption, saving and inputs for each level
The table gives hypothetical figures for consumption, savings, taxes, imports, investments, government spending and exports at different valves of national income for a simple economy. All the assumptions according to Keysian simple economic model are holding. Marginal propensity to consume is 0.8 marginal propensity to import is 0.2.
Y C S T M I G X TOTAL INJECTIONS TOTAL WITHDRAWAL AGGREGATE DEMAND
10 2 8 4 4
20
30
40
50
60
KEY:
Y: Income M: Imports
C: Consumption I: Investment
S: Savings G: Governmet
T: Tax X: Export
a)
i. Mention only three of the assumptions form the model. (3 marks)
ii. Calculate the marginal propensity to serve for the model. (2 marks)
b) Determine the values for consumption, saving and inputs for each level
Macroeconomics
How does the IS-LM model reacts if we are in a country that imports all of the petrol that consumes and the price of the petrol increases in the world.
Macroeconomics
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#339914 on Dec 2023
#339914 on Dec 2023