Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Macroeconomics Expert

1) In an economy operating in short-run equilibrium, assume that households believe and know that the present and  anticipated increase in government surplus for the coming 5 years would result in more social security payments in the form of after-retirement payments granted from the government to all citizens at old age. Based on this belief, many citizens started to re-think their spending and saving decisions for their future if this situation really occurred. (assuming all other variables remain constant)

a. How will this belief affect the market of Loanable Funds today? Describe your answer in words and graph?

b. Demonstrate how this effect in the market of Loanable Funds would reflect on the economy market. Describe your answer in words and graph using the AD-AS model.

2) In an economy (X) operating in a state of short-run equilibrium, the government has announced new relaxing rules and regulations to foreign investments in many business sectors operating inside the economy. 
How does the introduction of these new investment rules and regulations affect the market of Loanable Funds? Describe your answer in words and graph.

3) In an economy in a state of short-run equilibrium, suppose that the government imposed a new tax on all technology and machinery and equipments sold inside the country.
Show the effect of this economic fluctuation on the whole economy in words and graph using AD-AS model.

4) Given an economy operating in a state of long-run equilibrium. In this economy, the government announced a deal to build 100 public hospitals in 5 major cities of the country  in the amount of $500 billion.

a. Show the effect of this economic policy on the entire economy in words and graph using AD-AS model.

b. What must governments do to stabilize the economy using the tax fiscal policy instrument, indicate what should be done? Show the effect of your suggested policy in words and graph of the AD-AS model?

You have to draw ONE GRAPH for parts (a) and (b) above

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M91421

Have any Question? 


Related Questions in Macroeconomics

A machine costs 500000 and has a salvage value of 30000

A machine costs $ 500,000 and has a salvage value of $30,000 after 12 years of use. What are the depreciation charge and book value after year 6, using double declining balance depreciation method? Book value $167048, De ...

The scottish milk industry is perfectly competitive and is

The Scottish milk industry is perfectly competitive, and is initially in long-run equilibrium, with 1000 dairy farmers each producing 1000 liters of milk per day, so 1 million liters per day in total. Draw a diagram show ...

Use the concepts of i substitutes in production versus pure

Use the concepts of (i) substitutes in production versus pure complements in production and of (ii) gross substitutes versus gross complements to assess the likely impact of the rapid decline in the price of computers an ...

When the money supply increases it could lead to various

When the money supply increases, it could lead to various effects upon the demand for and supply of loanable funds, and thus the market interest rate. Which effect is consistent with an  increase  in demand for loanable ...

Discussnbspyour findings is it better to make strict acls

Discuss  your findings. Is it better to make strict ACLs and let users ask for exceptions, or to use few ACLs and only add them as they are discovered to be needed? What are arguments for both approaches? How different i ...

Economic indicators assignmentfind the values of annual us

Economic Indicators Assignment Find the values of annual U.S. GDP, unemployment rate, inflation rate, government budget deficit and government debt in 2005 and 2015. Report the statistics for the two years in a table, ma ...

Economic essaylate papers will get a penalty of 2pts per

ECONOMIC ESSAY Late papers will get a penalty of 2pts per day During the last part of the course, we have read two chapters from the book titled: Why nations fail. On Chapter 2 - Theories that don't work- the authors pre ...

Choose one of the following two questions to discuss if

Choose one of the following two questions to discuss. If there are two original posts related to one question, then you have to choose the other question for your original post. 1. The world's Least Developed Country can ...

Stolls pasty farms has contracted you to do an economic

Stoll's Pasty Farms has contracted you to do an economic analysis of the regional market for pasties and you have been operating under the assumption that a pasty is a pasty is a pasty - in other words, one pasty is just ...

1 500-1750 western europe can be considered largely as a

1. "500-1750, Western Europe can be considered largely as a single economic system. While the location of the most advanced region or nation varied over time, this was merely change within an overall system which, can fo ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen