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- 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.How does indexing wage contracts to inflation help workers?Is inflation likely to be a severe problem for at least some high-income economies in the near future?
- 36- : What is the name of the expenditures made independent of income level? a) Autonomous export B) Autonomous spending NS) Total expenditure D) Autonomous investment TO) Autonomous import1. What do you understand about national income? How would you like to summarize about approaches for the monetary analysis?20 - As a result of rising interest rates ........A) The purchasing power decreases.B) Unemployment will decrease.C) Production increases.D) the government's income will increase.E) Investments increase.
- 1- 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. 2-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. 3- Use the Aggregate supply and Aggregate Demand Model below to answer the questions that follow. Aggregate Supply and Aggregate Demand Model (i) Examine the influence of government expenditure on investment in a nation. Use Jot Inc. Ltd a multinational construction company in which you are the Chief Exec of the firm that that is highly diversified and…"If the government aims to reduce the price in order to reduce inflation rate, government should" increase business tax and reduce government expenditure. reduce business tax and increase government expenditure. increase income tax and government expenditure. reduce interest rate. Only typed Answer17- When an economy is at the peak of the business cycle _____________. a. GDP remains unchanged b. GDP level will be low c. GDP starts falling d. GDP level will be high
- 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?A3) Finance What happens to the value of the dollar if the bank of japan increase its money supply and lower interest rates? How will this impact the value of the dollar, exports, and imports, AD and GDP?1. An increase in the budget deficit is the result of: (a) Expansionary monetary policy; (b) Contractionary monetary policy; (c) Expansionary fiscal policy; (d) Contractionary fiscal policy. 2. Company tax is a: (a) Progressive, direct tax; (b) Progressive, indirect tax; (c) Proportional direct tax; (d) Regressive indirect tax. 3. In the base year, a country produced 50 units of output at a price of R6,00 each for a nominal GDP of R300. This year it produces 60 units of output at a price of R8,00 each. What is the percentage change in real GDP since the base year?(a) 5%; (b) 10%; (c) 20%; (d) 15%. 4. Which of the following statements about Fiscal Policy is INCORRECT?(a) In order to combat inflation, the South African Reserve Bank must apply a contractionary fiscal policy;(b) A contractionary fiscal policy can result in higher levels of unemployment; (c) Expansionary fiscal policy will increase the budget deficit; (d) The application of fiscal policy will have no effect on…
