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- Why are inflationary dangers lower in the high-income economies than in low-income and middle-income economies?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.What real world changes made the deregulation possible?
- The Kingdom of Wakanda is undergoing tremendous economic growth. Last year, its GDP grewby 11.45%. Wakanda's central bank - the Bank of Wakanda - is, however, worried about inflation,which has been hovering near double digits for the last two years. T'Challa, the country's ruler,says that he wants to sit down with Nakia, the Governor of the Bank of Wakanda, to discuss thecountry's potential economic problems. You are Nakia's advisor. Recommend a monetary policyfor Wakanda. How would the Bank of Wakanda carry out your recommendations?1.Which of the following ideas from prominent economic thinkers is the oldest? a.Control of the money supply is the most effective economics stabilisation policy. b.The government can take on a role smoothing out economic fluctuations. c.Specialisation and trade is the source of wealth creation. d.workers will eventually rise up in revolution and take over the means of production.b. How do fiscal and monetary policies differ in their approaches to managing the economy during periods of recession? Provide examples of each policy tool.
- Explain how can we use fiscal and monetary policy if we have a very high inflation rate inthe country1. Below is the list of internal factors in macroeconomy except a. Inflation rate b. Gross domestic product c. Interest rate d. Exchange rate 2. Following is a monetary variable except a. Interest rate b. Money supply c. Exxhange rate d. Gross Domestic Product 3. Money demand and money supply can influence which item in the income statement. a. Interest expenses b. Expenditure c. Gross profit d. Net income 4. Inflation can cause bribery. Bribery will increase a. Cost of doing business b. Unemployment c. Wastage d. Productivity 5. Inflation can influence the following except a. Tax b. Interest expenses c. Advertisement cost d. Cost of good sold4w=180 b=0.75 g=90 tax=90 nx=-50 i=300-10r central bank reserves are gold=100 f. currencies 200 l.currencies 150 t-bills 500 rrr=0.2 md=5000-50r calculate the equilibrium gdp (y). if ypot=1700 by how much should the central bank change the rrr to attain potential if instead the central bank will involves open market operations in order to attain potential. by how much should it increase or decrease t-bills
- 5,If the central bank sells government securities from the private sector-money markets, other things being equal, what would the effect be on the following? a) Economic activity and inflationWhat is the ideal balance between monetary and fiscal policy for a nation like Japan, where prices are rising yet unemployment is under control? a. Decrease taxes, increase government spending and increase money supply b. Decrease taxes, decrease government spending and decrease money supplyc. None of these choice is correctd. Increase taxes, decrease government spending and decrease money supplyQue 15: What is inflation targeting?