ompare and contrast the heterodox/MMT approach versus the Neoclassical/orthodox view of government finances. Be sure to address the following: a) the budget constraint; b) debt sustainability; c) crowding out; d) functional finance and sound finance; e) implications for sectoral balances
Q: Year (Base year) 1850 2190 2380 2021 2560 Q.3.2.1 Use the information in Table 3-2 to measure the…
A: CPI (Consumer Price Index) informs on the change in the prices of a basket of items and services…
Q: Isabelle is working on her real estate analysis project. She is gathering data that would help her…
A: Location Quotient is defined as a statistic which is used to measure the industrial specialization…
Q: Suppose that a consumer chooses (x1, x2) = (9,2) at prices (pi, p2) = (2,3) and (x,x) (4,5) at…
A: Weak axiom of revealed preference implies that when one combination is preferred to other…
Q: what is The Aggregate Expenditure Model
A: The value of all finished goods and services in an economy at a particular period is known as…
Q: Draw a graph illustrating the determination of the equilibrium exchange rate between the South…
A: Exchange rate refers to the price of one currency in term of another currency. In other words, how…
Q: What is financial repression and why does it exist?
A: Financial Repression refers to the measures through which government borrows funds from private…
Q: Using the data, provide estimates of the following key National Accounting Aggregates: a. gross…
A: In National Income Accounting from Expenditure Method - National Income : GDP = C + I + ( G - T ) +…
Q: Explain how the following situation would affect a nation's production possibilities curve. A…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Using the concepts of functioning’s and capabilities, explain why income (GDP per capita) is not a…
A: Gross Domestic Product (GDP) per capita depicts a country's GDP divided by its total population.
Q: A firm has two plants. Plant one has the total cost function TC₁ =q₁² and plant 2 has the total cost…
A: Given The cost function in plant 1: TC1=q12 ......(1) The total cost function in plant…
Q: Consider a monopolist facing a downward-sloping demand curve. Average revenue is ✓ marginal revenue.…
A: Monopoly firm is single firm in the market. It has power to decide the price. The monopoly firm is…
Q: 1. An analyst ran a regression with four predictor variables. Variable description Salary in…
A: Regression analysis refers to the prediction of the dependent variable by the independent variable.…
Q: Bart Simpson has $50 that he is thinking of using to buy a new skateboard. Instead, he could use it…
A: Opportunity cost: The value or benefit sacrificed when participating in one activity over another…
Q: 1. Imagine a person who wants to find a job within two months. Define X corresponding to the…
A:
Q: What kind of externality is in the market above? a. negative consumption externality b. positive…
A: An externality refers to an indirect cost or benefit to an uninvolved 3rd party that arises as an…
Q: Use the utility function u = E(₂) - 0.5 A o where A is the risk aversion parameter and A = 3.5. Use…
A: The additional satisfaction that a consumer receives from consuming the units of an item is limited…
Q: If a demand curve is downward sloping, it must represent demand for a normal good. (Inferior goods…
A: In economics the demand curve refers to a graphic representation on a relationship among the item's…
Q: Question 7. Assume that a monopolist sells a product with the cost function where C is the total…
A: The monopoly firm is only firm in the market. It maximizes the profit where the MR = MC.
Q: 5) There are three popular types of social welfare functions. Benthamite Social Welfare Function -…
A:
Q: Is the pareto principle generally accepted as true or accurate? Or is it considered not true?
A: The Pareto principle, named after economic specialist Vilfredo Pareto, indicates that 80% of…
Q: Determine the number of times interest is compounded in a year for an interest rate of 1% per…
A: When talking about frequency of compounding, it can be said that it is the number of periods,…
Q: Why Keynes argues that the “Classical” approach is a “special case” while his approach is the…
A: Introduction The classical economist believes that there is full employment exists in the economy.…
Q: Who answers the three key economic questions in a command economic system? O custom & tradition…
A: In command economy all the production and allocation decisions are centralised.
Q: The following graph shows the market for annual tortilla chip consumption, which is initially in…
A: Equilibrium refers to the point where the demand curve intersects the supply curve
Q: A company produces a special new type of TV. The company has fixed costs of $467,000, and it costs…
A: Total revenue is the total amount of deals of goods and services. It is determined by multiplying…
Q: Table 2-1 Good Rulers Pens Pencils Quantity (2020) Price (2020) 1 000 R3.00 2 000 R5.00 600 R6.00…
A: GDP- It calculates the monetary worth of the final products and services—those purchased by the…
Q: The interaction of the NZ taxation and welfare (benefits) systems creates Select one: a.greater…
A: The marginal tax rate will be computed as amount of tax paid on for each extra dollar of income. The…
Q: The government is considering intervening in this market. A. Calculate the producer surplus at the…
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: 10. Why international trade happens countries have absolute advantage A country has more ability to…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: rs. • Explain the renounceable rights issue of ordinary shares and discuss the advantages and…
A: 1. Renounceable rights issue is a right given to existing shareholders of a company to buy into more…
Q: Suppose, two trading partners simultaneous implement an optimal tariff due to trade wars then A.…
A: Optimal tariffs Robert Torrens was the initial person to recognize the potential for a tariff to…
Q: Assume an endogenous growth model with labour augmenting technology. The production function Is…
A: The production function is the equation that communicates the relationship between the quantities of…
Q: 9. Consider an economy with the following aggregate production function F(K, L) = AKL, where A = Ag…
A: Introduction Production function of a firm is a functional relationship between inputs used and…
Q: Suppose that good 1 is normal and good 2 is inferior. Prove that the total effect on demand for good…
A: We will prove this inequation using 2 concepts a) Slutsky substitution effect b) Hicksian cross…
Q: between the U.S. dollar and the Polish zloty is the number of dollars required to buy a single…
A: The _ between the U.S dollar and the polish zloty is the number of dollars required to buy a single…
Q: company buys a machine for $17,000, which it agrees to pay for in six equal annual payments,…
A: Interest rate is the amount charged over and above the principal amount by the lender from the…
Q: Suppose a firm has an average cost function given by AC = 20q - 10+ Determine the output that will…
A: Cost function determines the functional relationship among the cost and output. Average cost (AC)…
Q: Armando consumes two goods: grapes and wine. He can purchase both at the market and also possesses a…
A: According to the Alfred Marshall-named Marshallian demand function, the amount a consumer needs of a…
Q: what are implications for sectoral balances under the heterodox/mmt and new classical approaches?
A: Heterodox economics refers to the study and exploration of economic theories that are considered to…
Q: For the cost function below, where c is the cost of producing q units of a product, find the…
A: Marginal Cost is the additional cost incurred due to production of an additional unit of output.…
Q: Question 11 At point A, how many units of All Other Goods is the person buying? All Other Goods A…
A:
Q: Fill in the following cost table where cells have been left blank. In other words, use "Units of…
A: Profit is maximum where P = MC or MR = MC Profit = Total revenue - Total cost.
Q: Consider an individual with preferences over two goods. This consumer is maximising utility when:…
A: According to consumer choice theory, when faced with a limited budget, consumers seek to maximize…
Q: Which of the following is a deflationary measure? Select one: a. Discouraging savings b. Decreased…
A: Aggregate demand is composed of consumption spending, investment, government purchases and net…
Q: 4. Consider a community with 80 vacant parcels. The value of developed parcels can be represented by…
A: Profits: It refers to the excess amount of revenue. The change in the level of profit will increase…
Q: What are the disadvantages of using loans to financial institutions to prevent bank panics?
A: We are well known that A bank panic is a situation when there are rumors of the bank being closed…
Q: A commodity has a demand function modeled by p= 112 - 0.5x and a total cost function modeled by C =…
A: The profit is maximized where the Marginal revenue is equal to the marginal or MR= MC.
Q: (b) Given that nothing else is borrowed in the near future, the length of time it will take a…
A: Government debt is a concept that has existed for a very long time and will do so in the future.…
Q: Using Regression 3 results, is there evidence of international price discrimination? Is the…
A: The regression equation shows the relationship between the dependent and independent variables. It…
Q: carefully explain what is happening in the market for tea. indicate the impact if any on demand,…
A: Increase in supply = rightward shift in supply Decrease in supply = Leftward shift in supply curve.…
Compare and contrast the heterodox/MMT approach versus the Neoclassical/orthodox view of government finances. Be sure to address the following: a) the budget constraint; b) debt sustainability; c) crowding out; d) functional finance and sound finance; e) implications for sectoral balances.
Step by step
Solved in 3 steps
- what are the differences in debt sustainability under the heterodox/MMT and Neoclassical/orthodox approaches?How is the heterodox/MMT approach different than the Neoclassical/orthodox view of government finances?Part I. True/False Questions. (1) ______ A linear PMLC model consists of a number of dependent phases that are executed in a sequential order with no feedback loops. (2) _____ The purpose of the planning process group is to develop and gain approval of a general statement of the goal and business value of the project. (3) ______ Estimating the total cost of the work belongs to the launching process group. (4)_______Excellent time management in project management requires the planning, scheduling, monitoring and controlling of all project activities. (5) _______Databases belong to the electronic communications management. (6) _______A requirement is a desired end-state whose successful integration into the solution meets more than one needs and delivers specific, measurable, and incremental business value to the organization. (7) _______Functional requirements specify what the product or service must do. (8) _____The work breakdown structure is a hierarchical description…
- Controls are the measures that governments put in place to deal with overspending Select one: • True • False If the tone at the top is successful adopted, then there is a high risk of unethical behaviour. Select one: • True O False An incremental budget is a type of budget that is prepared through the subtraction of capital from a previous period's budget Select one: • True • False The two main categories of government revenue are: a. Income from Public Secior Bodies and Dividends. b. Revenue Receipts and Capital Receipts c. Tax Revenue and Income from loans d. Direct Taxes and Indirect TaxesThe state of Alabama has legally earmarked around 85 percent of its state budget. This means that: a. In the annual appropriation process, members of the state legislature typically earmark particular locations in which spending will occur, thereby preventing administrative discretion in how appropriated funds get used. b. 85 percent of the money received for the state budget is allocated to particular uses in permanent law and is not subject to annual allocation by the legislature c. Individuals may receive benefits from the state if they meet criteria established in the earmarking legislation d. 85 percent of the budget is legally under control of the state legislatureY8 Analysis on the perceived occurrence of challenges delaying the delivery of water infrastructure assets in South AfricaIntroductionInfrastructure development is of paramount importance for a sustainable economy that is competitive and productive. However, inflexible government’s fiscal policies, high budget deficits and lack of debt reduction strategies experienced by the public sector directly affect infrastructure development (Ruiters and Matji, 2015). The public sector experiences challenges of provisioning for public infrastructure assets. There are many challenges delaying infrastructure development. The study explored infrastructure backlog and deficits as alarming challenges to adequately fund and deliver water infrastructure assets in South Africa. Kudumela (2015) outlines challenges of infrastructure development: insufficient skills capacity at the municipal level, lack of funding, political instability and corruption, while Senyakoe (2011) indicates that municipalities…
- the IS-LM model is considered. Autonomous consumption equals 100, autonomous investment equals 100, government spending equals 100, marginal propensity to consume equals 0.9, income tax rate equals 0.1, investment sensitivity parameter equals 10, autonomous speculative demand equals 200, speculative demand sensitivity parameter equals 4, transactions demand sensitivity parameter equals 1, precautionary demand equals 200, nominal money supply equals 500, and general level of prices equals 2 a) find IS curve and interpret its slope b) derive IS curve graphically c) find LM curve and interpret its slope d) derive LM curve graphically e) find equilibrium income and equilibrium interest rate f) present IS-LM model graphically and show how fiscal contraction affects economythe choices for the very last blank are: partial crowding out, complete crowding out, and zero crowding outReported profits often are surprisingly high in a recession, when economic growth is low. The best explanation for this is: A. Annual profits are a one year snapshot, and when new corporate investment is low, there is not enough depreciation on new projects to offset profits on old projects. B. Corporations raise prices in bad times to make up for lost sales, leading to high profits. C. Corporate losses in bad times are used as write-offs, allowing corporations to avoid taxes and thus have high profits. D. All of the above are equally likely explanations.
- The economy of certain country runs a budget deficit of 1% of GDP per annum for 20 years. This situation is: a. Is unsustainable, as it leads to an ever-growing public debt level. b. Is sustainable if the level of GDP growth is no more than 1% per annum on average. c. Is sustainable if the level of GDP growth is more than 1% per annum on average. d. Is unsustainable if the level of GDP growth is more than 1% per annum on average.Identify the leakages and injections in a four sector modelWrite down the two decision variables of a household or the two goods (including both market and non market goods) in one period RBC model.