Consider the following policy scenarios. Construct a diagram reflecting the policy and explain how it relates to the loanabke market. Please label diagram so it is easy to follow and understand. Scenario policy 2: Suppose the government changes the tax code, allowing individuals to reduce their taxable income if they save money in registered retirement saving plans (RRSPs)
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Consider the following policy scenarios. Construct a diagram reflecting the policy and explain how it relates to the loanabke market. Please label diagram so it is easy to follow and understand.
Scenario policy 2: Suppose the government changes the tax code, allowing individuals to reduce their taxable income if they save money in registered retirement saving plans (RRSPs)
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- Classify the following as microeconomics or macroeconomics and provide a justification for your response. A comparison of alternative tax policies and their respective impacts on the rate of the nation’s economic growth The decision by McDonald’s to hire fewer workers because of an increase in the minimum wage. Susan’s decision about how much income to save The central bank announces that it is increasing the discount rate in an effort to slow the rate of inflation. Question 2 A snowboard company currently hires 10 skilled employees who are paid a weekly wage of $1,000.00. the cost of capital is $3000 and it is fixed, which means that it does not vary with output. The company is currently producing 240 snowboards. The company’s cost will be $13,500 if it produces an additional snowboard. A customer is willing to pay $550 for the 241st snowboard. Should the company produce and sell it? Timothy quits his job which pays $84000 a year, to enrol in a 2-year…Intermediate macroeconomics: Using examples and clearly labeled graphs where applicable answer the following questions clearly and detailed. What argument, based on macroeconomic theory, might a government use to justify shutting down a newspaper critical of its policies? If you were asked to provide a counterargument, what would it be? Explain.The primary goal of effective macroeconomic policies is to reduce uncertainty and risk in economic decision-making and maintain healthy levels of economic growth and minimize price changes. What would be the response by the government for the following events and why? b) The labour market is expected to remain pressured in the near term on the back of surging COVID-19 cases and the reimposition of nationwide Movement Control Order (MCO 3.0).
- Which one of the following statements is INCORRECT? A Keynesian economists believe that the business cycle is caused by external factors, such as governmentinterference in the economy.B Classical economists believe that market economies are inherently stable and fluctuations are ascribed toexogenous factors.C Classical economists believe that government should not intervene in the economy to try to smooth out thebusiness cycle.D Structuralist economists believe that the market system is neither inherently stable norsystematically unstable . Consider the case of two countries, Afghanistan and the US, both producing carpets and fighter aircraft.The table below shows output rates per day in the two countries if all resources are fully and efficientlyemployed. Use this information to answer the question.Carpets Fighter aircraftAfghanistan 100 4US 500 25An appropriate international exchange ratio that would allow mutually advantageous trade to takeplace would be: A 1 aircraft = 25 carpets.B…Describe scope of MacroeconomicsThe primary goal of effective macroeconomic policies is/ are ......................................... Select one: A. Enhances prospects for growth and improved living standards B. To reduce uncertainty and risk in economic decision-making C. Have an impact on how income is distributed across economic classes D. All of the given options
- Changes in macroeconomic indicators can often be of relevance to business and influence decision-making concerning a range of issues related to things like profit forecasts, expected sales growth, expansion plans, etc. Assume you are employed as a business analyst with a large Singaporean based multinational corporation that manufactures electronic products. Identify and discuss how each of the following macroeconomic issues may be relevant to the firm. Rising unemployment in Singapore and other developed nations.The following are examples of macroeconomic questions that remain debated among economists and policy-makers: 1. Does economic growth create inequality in income and wealth? 2. Do lower wages reduce unemployment? 3. Is there a trade-off between unemployment and inflation? 4. Is a large government debt a problem? 5. Should central banks target inflation in asset prices or only in consumer prices? Choose any two of the above questions and in each case briefly outline the economic reasoning behind different viewpoints.True/ False Macroeconomics deals with the study of Cotton textile industry.
- Write a review report/essay by focusing on the key macroeconomic challenges that have been discussed in “Principles of Macroeconomics”.Predict how each of the following economic changes will affect the equilibrium price and quantity in the financial market for home loans. Sketch a demand and supply diagram to support your answers. The number of people at the most common ages for home-buying increases. People gain confidence that the economy is growing and that their jobs are secure. Banks that have made home loans find that a larger number of people than they expected are not repaying those loans. Because of a threat of a war, people become uncertain about their economic future The overall level of saving in the economy diminishes. The federal government changes its bank regulations in a way that makes it cheaper and easier for banks to make home loans.Land is a factor specific to producing olives. When Padua starts to trade, it exports olives. Using the specific factors model, explain what happens to nominal and real rental rates of land.