Economics Answers

An economy has no banks. The total money supply amounts to $2000 and the people of the economy keeps away the money under their blankets. Then Kuddus Mia opens the first bank, Bank Kuddus. Following the footsteps three other bank open up, Bank Mojnu, Bank Lailee and Bank Jarina. Also, the government sets up a Central Bank accordingly and the minimum reserve ratio is set at 15%. Explain how money supply is created using T-Accounts and describing the process involving all mentioned four banks. Also, calculate the total money supply created at the end of the process (Hint: money multiplier).

Suppose the economy is stuck in a Recessionary Gap. Now the government wants to deploy expansionary Fiscal Policy tools to move the economy back to long-run equilibrium. Explain the following scenarios with appropriate graphs: a. There are no lags in the implementation process. b. There are lags in the implementation process.

Explain the Keynesian Consumption Model in details using an example. Suppose the economy is stuck in a Recessionary Gap, using a graph explain how you can utilize the concept of the Keynesian Consumption Model to explain how government can push back the economy to the long-run equilibrium.

One column total of a special journal is posted at month-end to only two general ledger accounts. One of these two accounts is Accounts Receivable. What is the name of this special journal? What is the other general ledger account to which that same month-end total is posted?

One of the core Classical Economist believes was the flexibility of prices. Explain how Keynes showed otherwise from the perspective of the economy’s labor market with the aid of a diagram.

. Suppose the economy is in the long-run equilibrium & everybody in the economy is affected by a buying bugs, so they all start buying more. With the aid of appropriate diagram/s show and explain what will happen in the economy, according to the Classical Perspective. *

Suppose you are all in a Barter Economy. Explain Say’s Law in the context of this Barter Economy (of course using a model example). Now suppose all of you have transitioned to a Monetary System economy. Now explain how Say’s Law holds (from the Classical Economist perspective) and of course continuing from the previous example.

5. A decrease in which of the following will most likely change a Gini coefficient from 0.4
to 0.3?
A. Company tax rates
B. The goods and services tax rate
C. Marginal income tax rates for high income earners
D. Tax rates levied on the profits from the sale of property

● Assessment​ :
Tax, control, and protect: which is more important?
Government seeks to regulate finance firms in order to collect tax revenues or to better control businesses and the economy or to protect consumers. Which of these objectives do you think is the most important and most likely to guide government policy decisions? and why

Natural Company plans to sell 40,000 boxes of teabags during January. The company has 6,000 boxes on hand on January 1 and requires 15% of the next months' sales on hand at the end of the month. Budgeted sales for the month of February and March, are 35,000 and 45,000 boxes, respectively. Budgeted production for January would be:
a) 40,000 boxes
b) 35,000 boxes
c) 39,250 boxes
d) 40,750 boxes