Please answer fast in both QUESTION 2In an OLG model with money:Each gen picks 12 banans when young, 0 bananas when old.Central bank prints out 2 units of money, given to gen 0 for free.The population of this economy isin each period.QUESTION 3In an OLG model with money:Each gen picks 12 banans when young, 0 bananas when old.Central bank prints out 2 units of money, given to gen 0 for free.The number of people employed in each period is

*Answer: The overlapping (OLG) generations model explains why monetary money is better than a…

del with money: s 12 banans when young, O bananas when old. arints out 2 units of money, given to gen 0 for free. n of this economy is in each period. 13 del with money: s 12 banans when young, 0 bananas when old. prints out 2 units of money, given to gen 0 for free. people employed in each neriod in

del with money: s 12 banans when young, O bananas when old. arints out 2 units of money, given to gen 0 for free. n of this economy is in each period. 13 del with money: s 12 banans when young, 0 bananas when old. prints out 2 units of money, given to gen 0 for free. people employed in each neriod in

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter13: Money And The Banking System

Section: Chapter Questions

Problem 9CQ

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Consider a one-period model like the one considered in class. There are three states. At the beginning, everyone is unemployed. In the second stage, individuals search for a job. Suppose that the probability of finding a job is 0.5. in the third stage, individuals who found a job will work, while those who did not find a job remain unemployed. Each job pays wage w=10. If a person does not find a job he/she will collect unemployment benefits b=4. a)What is the expected income at the beginning of the economy (i.e. before the job search)?
Please help. Can you draw a model or IS-LM (income spending money demand and supply model) describing the unemployment in an economy.
Consider the following dialog between Amy, an economics student who currently studies macroeconomics, and Deborah, her teaching assistant.AMY: Hi Deborah, I'm working on my Aplia homework and realized that I do not understand the definition of the labor force very well. Does it include discouraged workers? DEBORAH: Hi Amy, the conventional definition of the labor force excludes discouraged workers. This is because they gave up looking for jobs . Also, be sure not to mistake discouraged workers for part-time workers. The key difference is that the latter cannot find suitable full-time jobs . AMY: I think I understand it now, thank you. DEBORAH: Let me ask you a question to see if you can apply your knowledge. Consider an economy with 20 full-time workers, 16 part-time workers, 10 workers who have been laid off but are actively looking for a new job, and 3 formerly full-time workers who have been without a job for over a year, failed to find any, and gave up looking. Can you…
Linear stages theory, Structural-change model (Lewis two-sector model), International dependence/dominance model, Neoclassical model How do the contemporary models differ from the previous models? Coordination failures ComplementarityWhy do these models emphasize multiple equilibria and what does it mean?What problems may prevent economy from moving from a bad equilibrium to a stable one?Need to understand that graphWhat are the big push and O-ring theories (important to have a broad or general understanding ofthe two theories?)
Using the model of business fluctuations, show the effect of the COVID-19. Recall that COVID-19 shut down production in a series of important U.S. industries and caused considerable job losses. Fear of the virus caused Americans to travel less, buy fewer personal services, and consume fewer restaurant meals. (b) The Fed responded to the economic effects of COVID-19 by cutting interest rates while Congress passed a large relief package (i.e., an increase in government spending). Show each of these effects on a separate diagram.
he Fisher effect implies that lenders set a nominal interest following the general relationship i= E[π] + rmkt, where i is the nominal interest rate, and r is the competitively determined rate of return. Which best describes redistribution between borrowers and lenders if inflation unexpectedly rises? a. The nominal interest rate, i, from a loan will be too low and the real rate of return will increase. b. The nominal interest rate, i, from a loan will be too low and the real rate of return will decrease. c. The nominal rate set at the time of loan agreements will be too high, and the real rate of return will decrease. d. The Fisher effect is based entirely on perfect information for inflation, ie E[π] = π. e. None of the above
In an OLG model with money: Each gen picks 12 banans when young, 0 bananas when old. Central bank prints out 2 units of money, given to gen 0 for free. The price level of this economy is 1 bananas = ______ money.
A few months ago, persons were hoping and praying for a vaccine to be developed to fight against Covid 19. The good news is that there is now a vaccine and some countries have approved the use of said vaccine. Assume that governments will have to finance the purchase of the vaccine and that in order to finance the purchase of the vaccine Caribbean governments will have to take a loan from China. a. Using the IS-LM model, explain the impact of the government spending on vaccine on interest and income. b. Discuss THREE possible impacts that borrowing from China could have on a Caribbean country of your choice.
In an OLG model with money: Each gen picks 12 bananas when young, 0 bananas when old. Central bank prints out 2 units of money, given to gen 0 for free. The price level of this economy is 1 bananas = ______ money.
what is it that the three income hypothesis have in common, does it address the the deficiency in the Keynesian absolute income model?
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In an OLG model with money: Each gen picks 12 banans when young, 0 bananas when old. Central bank prints out 2 units of money, given to gen 0 for free. Young generation= Cy Old generation= Co Cy= 4-vm Co= 0 +vm The population of this economy is ______ in each period.