Economics Assess the following statements whether are true or false? Justify your answer making reference to the objectives of the policy maker and please answer the question in 5 lines a. Economic policy should aim to limit firm-level volatility ( b. Economic policy should aim to limit macro-level volatility
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Economics
Assess the following statements whether are true or false? Justify your answer making reference to the objectives of the policy maker and please answer the question in 5 lines
a. Economic policy should aim to limit firm-level volatility (
b. Economic policy should aim to limit macro-level volatility
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- Let's assume that prices substantially increased over the past year. How do you expect this will affect people's buying behavior? Be sure to tie this back to economic concepts discussed in this course. Time Atten 33 M.Consider the following data on Prices and Quantities of orangesand VCRs. From a. – k Calculate the total value of goods and services at current prices in thiseconomy in 1998.b. Calculate the total value of goods and services at current prices in thiseconomy in 1999. using the imageYou have been hired as a Marco Economist by the President of the United States to help evaluate the recentannouncement by Federal Reserve chairman Ben Bernanke that the FED will be increasing interest rates again.Ben Bernanke has justified the move on the grounds that the economy continues to be strong. Answer thefollowing questions. Provide a graphical explanation for your answers whenever possible. 4. What happens to the interest rate?A. increaseB. decreaseC. remains unchanged 5. What happens to the aggregate Demand curve?A. increase (shifts to the right)B. decrease (shifts to the left)C. remains unchanged What is the effect on the foreign exchangemarket (the $ market)? 6. Demand?A. increase (shifts to the right)B. decrease (shifts to the left)C. remains unchanged 7. Supply?A. increase (shifts to the right)B. decrease (shifts to the left)C. remains unchanged
- The income effect of a price change predicts that a to a(n) in the consumption of rise; decrease; increase; inferior rise; decrease; decrease; inferior fall; decrease; decrease; normal fall; increase; increase; inferior goods. in a good's price will consumer purchasing power, leadingA neoclassical economist and a Keynesian economist are studying the economy of Vineland. It appeals that Vineland is beginning to experience a mild recession with a decrease in aggregate demand. Which of these two economists would likely advocate that the government of Vineland take active measures to reverse this decline in aggregate demand? Why?16. Pick 1 answer. Summarize the Neoclassical model: A. The neoclassical model is built on the importance of aggregate demand as a cause of business cycles and a degree of wage and price rigidity, and thus does a sound job of explaining many recessions and why cyclical unemployment rises and falls. B. The neoclassical model emphasizes aggregate supply by focusing on the underlying determinants of output and employment in markets, and thus tends to put more emphasis on economic growth and how labor markets work. C. The neoclassical model is built on the importance of aggregate supply as a cause of business cycles and a degree of wage and price rigidity, but does a poor job of explaining many recessions and why cyclical unemployment rises and falls.
- Pick 1 answer. 4. Summarize the Neoclassical model: A. The neoclassical model is built on the importance of aggregate demand as a cause of business cycles and a degree of wage and price rigidity, and thus does a sound job of explaining many recessions and why cyclical unemplovment rises and falls. B. The neoclassical model emphasizes aggregate supply by focusing on the underlying determinants of output and employment in markets, and thus tends to put more emphasis on economic growth and how labor markets work c. The neoclassical model emphasizes aggregate demand by focusing on the underlying determinants of output and employment in markets, but tends to but less emphasis on economic growth and how labor markets work. 9.15. The pattern below would probably: /// a. Go down trend d. Go up and down again b. Go up trend Go down and up again c. Go flat trend f. Cannot be used to predict future price е.Fearing a recession, the government decides to give citizens a tax rebate to buy Christmas gifts. What is a possible outcome of this action? A.) Inflation increases B.) interest rates increase C.) interest rates decrease D.) Inflation decreases
- There are several factors that have influenced the importance of purchasing andsupply”. Justify this statement by discussing information technology as a major factor.Provide an example of your choice to explain the factor.The IS curve shows the combinations of (i, Y) that make the goods market in equilibrium. "I" stands for O A. imports O B. Investment C. Interest rate O D. Inflation rateNotepad at View Help does a change in tastes lead to a shift in the suppyly curve?why or why not ?
