Given the stylised representation provided in the graph above, which of the following sentences is most accurate about the burden of the policy?
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Given the stylised representation provided in the graph above, which of the following sentences is most accurate about the burden of the policy?
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- Describe the key features of the graph in 250 WORDS OR MORE. You need to start with anoverview to what the graph is about and then you need to cover all key information you can understand from the graph and finish your analysis with what you can conclude from the graph. In particular, the following questions should be addressed: what does each curve represent? Where can such a negative shock in the demand come from? What are the two points displayed on the graph? Are firms and consumers better off after the shock?Don't forget to start with a plan. DO AN ANALYSIS AND CONCLUDE2a a. What is Alonso’s Principle of Median Location?Are the following statements true, false, or uncertain? Explain briefly but clearly. * Suppose beekeepers earned twice as much on average in 2015 than they did in 1975, even after adjusting for inflation and even though the equipment and technology they use have not changed in any way whatsoever. Nonetheless, the rise in their wages was still likely caused by technological change, albeit through an effect on supply rather than demand. Suppose a new law made it easier for restaurant waiters in Chicago to form labor unions, and over the next three years wages rose at non-unionized restaurants in Chicago. Then the threat and/or product market effects were greater in magnitude than the spillover effect. Provide short, clear answers to the following questions The standard deviation of college graduates’ annual incomes has grown over time, but the standard deviation of their annual consumption spending has not changed much. How is this possible? What can you learn from the comparison…
- Consider an economy (call it country G) that is implementing climate change legislation more rapidly than other countries (refer to them as ‘row’ for ‘rest of the world’). Explain how this decision by country G could affect its long-run markup. Using diagrams, explain your forecast for the effect of this decision on real wages, inequality and employment in G in the new equilibrium. In the light of your findings, what advice would you give to a policy maker in G?QUESTION 29 The DoDo Bird Co., a U.S.-based MNC has applied the following regression model to estimate the sensitivity of its cash flows to exchange rate movements PCF; = ao + bęet + Ut Where the term on the left hand-side is the percentage change in the inflation adjusted cash flows measured in U.S. dollars over period t and eț is the percentage change in the exchange rate of the euro (versus the dollar; number of dollars required to buy one euro) over period t. The regression model estimates a coefficient of bt equal to 0.5. This indicates that: O a. If the euro appreciates by 1%, DoDo Bird's dollar cash flows will decline by .5%. O b. If the euro depreciates by 1%, DoDo Bird's dollar cash flows will increase by 2%. O c. If the euro depreciates by 1%, DoDo Bird's dollar cash flows will decrease by 2%. Od.If the euro depreciates by 1%, DoDo Bird's dollar cash flows will decline by .5%. O e. None of the above QUESTION 30 The 2017 Tax Cuts and Jobs Act: O a. Lowered corporate tax rate…What kind of problem is the U.S. economy facing? Give one possible reason why this problem may exist. State whether the Fed should use fiscal policy or monetary policy to address the situation. Given the stated policy in your answer to question #2, indicate what specific policy tool you would recommend as the appropriate course of action and why you are recommending this tool. Policy Implementation: Utilizing the figure above as your starting point, illustrate (graph) the macroeconomic situation of the United States after a successful implementation of the policy tool you’ve recommended. What are the effects on the macroeconomy on GDP and the aggregate price level?
- The following graph illustrates the market for cashews. It plots the monthly supply of cashews and the monthly demand for cashews. Suppose an increase in pests destroys a major portion of cashew trees. Show the effect this shock has on the market for cashews by shifting the demand curve, supply curve, or both. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. PRICE (Dollars per ton) 30 24 18 12 6 0 0 4 8 12 Supply Demand QUANTITY (Thousands of tons) 16 Total Revenue (Thousands of Dollars) 20 Demand Supply ? One of the growers is pleased with the price increase caused by the pests because she believes it will lead to increased revenue. Using elasticities, you will be able to determine whether this price change will lead to a rise or fall in total revenue in this market. Using the midpoint method, the price elasticity of demand…Financial crises and market bubbles are inevitable in the global economy. In this module, we examined some of these financial crises, including: The European banking crisis in 2011 The oil price collapse in 2014 The emerging market turmoil in 2013 The Puerto Rican debt crisis in 2015 The crypto crash in 2018-2019 The COVID-19 pandemic financial crisis While none of these crises matched the scale of the Great Recession of 2008, they still had significant impacts on international markets. To find out about countries' financial information, you can use the resources listed in the Global Financial Information Resources document. Consider the past financial crises and market bubbles. In your discussion, address the following questions: What market indicators can help identify potential global financial crises? What do you anticipate could be the next global financial crisis? How has the global economy responded to the challenges of the COVID-19 pandemic? How do you think the COVID-19…The graph below is associated with a hypothetical country. Consider a decrease in aggregate demand (AD). Specifically, aggregate demand shifts to the left from AD₁ to AD2, causing the quantity of output demanded to fall at each price level. For instance, at a price level of 140, output is now $200 billion, where initially it was $300 billion. PRICE LEVEL 170 160 150 140 130 120 110 100 90 0 100 +-+ I I 200 300 400 500 OUTPUT (Billions of dollars) AD1 AD2 600 700 800 ?
- What is the shape of a typical Hubbert Curve?15. What does the slope of the SAS curve represent? Give one example of something that might change the slope. How will demand-driven recessions look different when the slope changes? Illustrate your answer by modelling a demand-driven recession against differentlysloped SAS curves. (Please draw a diagram or answer is incomplete!) Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.What are the short-run and long-run economic effects of Canada lowering interest rates during the pandemic? Please provide graphs to assist in the analysis.