Propose 2 solutions to the current economical inflation that is being experienced domestically in the United States only within the means of Fiscal Policy (No mention of Monetary actions) and how it would affect the economy in the short term as well as a long term one. Be sure to correlate both policies to primarily take into account; Economic Growth, Full Employment, and lower inflation
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- (b) Assume that the household in an economy spend 75% of their extra income. Calculate the change of aggregate demand if government increase their spending by $150,000. (c) If prices keep rising, a nightmare scenario for the US economy is a real possibility New York (CNN Business) There's no denying it: Inflation is here. Consumer prices surged 7% over the past year. Housing prices have continued to soar, too. But the question on the minds of many economists and Wall Street strategists is whether something even worse could be in the cards: prices rising as the economy slows. Source: CNN Business, 12" January 2022. Examine the cause of stagflation, and how it affects the output and price level. (d) Based on part (c), what will happen to the output and price level if the US policymakers accommodate the shift in aggregate supply? State only one fiscal policy tool that the policymakers may use.a. Examine the fundamental causes of a nation’s business cycle fluctuations. Also, examine the relationship between total spending by government and consumers in a nation and the location of the countries’ GDP on the business cycle. b. 1. Suppose you have $200,000 in a bank term account. You earn 5% interest per annum from this account.You anticipate that the inflation rate will be 4% during the year. However, the actual inflation rate for the year is 6%.Calculate the impact of inflation on the bank term deposit you have and examine the effects of inflation in your city of residence with attention to food and accommodation expenses. 2. The Australian Bureau of Statistics (ABS) reported in May 2017 that the civilian population in Australia over 15 years of age was 20.8 million.Of this population of 20.8 million Australians, 13.5 million were employed and 0.7 million were unemployed.Calculate Australia’s labor force and the number of people in the civilian population who were not in… (c)Using an appropriate graph, discuss the contractionary policies in order to control inflation.
- [1] The Kuznet's hypothesis has played an important role in shaping policy. (b) The Kuznet's hypothesis has often led policy makers to focus exclusively on economic growth. Drawing upon empirical evidence discuss the validity of such policy.Fiscal and monetary policy may be used to help an economy recover and get out of a slump. Explain 2 possible problems or drawbacks that this may cause (6)Explain what will happen in a nation that tries to solve a structural unemployment problem using expansionary monetary and fiscal policy. Draw one AD/AS diagram, based on the Keynesian model, for what the nation hopes will happen. Then draw a second AD/AS diagram, based on the neoclassical model, for what is more likely to happen.
- (c). Consider an economy that starts out in steady state when the central bank decides to make the inflation target more ambitious. Analyse the effects of a decrease in the inflation target from ? to ??. Explain the mechanisms behind the adjustment to the new steady state.ANSWER THE FOLLOWING QUESTIONS: (Detailed responses (4-5 paragraphs for each question. No short answers please 1. Why did the unemployment rate increase in the year 2020? 2. How has the pandemic impacted inflation? 3. How did Covid-19 effect the stock market? 4. What was the potential impact of Covid-19 on GDP (gross domestic product) and trade? A. Provide an introduction and the background of your study, and clearly state what your research question or objective is. What real world issue are you going to research; ie your research idea or objective: III. Briefly explain how the economic theory is related to your real world topic Recent Trends of Real-World Evidence Report: Produce a report of facts/information to educate us about your chosen real world application. Find news items/articles that provide verifiable facts/data related to your topic of interest (views and opinions expressed via social media are not credible since they are not facts)). These should report recent…Suppose the bank of Ghana purchases Ghc 180 million worth of Government of Ghana bonds to the public. ( a) With the aid of money market diagrams, explain how the money market will be affected. (b) Explain what will happen to the interest and show why the change in the interest rate will restore the money market back to equilibrium (c) Use the Keynesian Cross diagram to illustrate and explain how the goods market will be affected by this monetary policy. (d) Using your answer in part (iii) above can you conclude that the above monetary policy is contractionary? Explain.
- Elaborate on FOUR or more of the challenges has overcomes by Malaysian government to success in implementation that macroeconomics policy/mechanism inflation and national budget.Question 10 s in High employment is: The goal of maintaining a low national unemployment rate of near 0% unemployment of the labor force. The goal of maintaining a low national unemployment rate of about 4-5% of the labor force. The goal of maintaining a healthy labor market in which at least 96% of workers can earn a livable wage. The goal of maintaining a free and fair national labor market in which all workers can compete for jobs. The goal of maintaining a low unemployment rate of 4-5% in every regional and local labor market in the country. OO A Moving to the next question prevents changes to this answer. Q JUL 20 tv A O A Nc (A2) Economics Governments use targeted financial programs to support the production and purchase of energy efficient appliances for firms and households respectively. Discuss one (1) implication of this government policy on firms and households each and relate to the major concerns of macroeconomics. Major concerns of macroeconomics include output growth, inflation and unemployment rate.