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graphically compare effects of monetary or fiscal expansion on equilibrium output in closed and open economy. EXPLAIN your results
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- Consider a frugal closed economy without money market. Assume there is no government or exports/imports. The economy is described by the following set of equations. C=1000+0.5⋅Y ID = 600 What is the equilibrium output Y* a)4000 b)2000 c)3200 d) 1600In the long run, what happens to interest rates when the government increases taxes in closed economy? Could you help me provide insight on how interest rates are effected by increased taxed in closed economy.Suppose you heard on the news that the three sectors of a closed economy are all spending more but, so far, there has been little to no change in the price level." What is the macroeconomics in this situation?
- The following information is provided about an open economy with a government. Use theinformation to answer the questions that follow:C = 450 + 0.4YI = 350G = 150X = 70Z = 35 + 0.1YT = 0.15YYf = 1550 Q.2.4 Calculate the tax revenue to the government of this country when the economyremains in equilibrium.The current Ukraine-Russia War threatens the prosperity of the global economy, and as such, the UK economy. You are working as an Economist for the HM Treasury and a panel of Members of Parliament have asked you to provide guidance on the current situation of the economy and potential demand side and supply side policy interventions to stabilise the economy. Using economic theory, answer the following: a. Discuss how this global event, outlined above, could cause actual growth to deviate away from its potential output in the UK. Why could it be suggested that there maybe longer run impacts to the UK's productive capacity? b. To what extent could deviations in UK real output and the interest rate cause changes in the equilibrium and disequilibrium level of unemployment?The following information is provided about an open economy with a government. Use theinformation to answer the questions that follow:C = 450 + 0.4YI = 350G = 150X = 70Z = 35 + 0.1YT = 0.15YYf = 1550 Q.2.6 Before the government decreased the tax rate, how much of governmentspending was required to bring the economy to full employment?
- The current Ukraine-Russia War threatens the prosperity of the global economy, and as such, the UK economy. You are working as an Economist for the HM Treasury and a panel of Members of Parliament have asked you to provide guidance on the current situation of the economy and potential demand side and supply side policy interventions to stabilise the economy. Using economic theory, answer the following: a. Discuss how this global event, outlined above, could cause actual growth to deviate away from its potential output in the UK. Why could it be suggested that there maybe longer run impacts to the UK's productive capacity? b. To what extent could deviations in UK real output and the interest rate cause changes in the equilibrium and disequilibrium level of unemployment? c. "Any volatility in output and unemployment because of the War would be due to slow market adjustment. Domestic policymaking should be focussed towards re-correcting any longer run rigidities over short run demand…The following information is provided about an open economy with a government. Use theinformation to answer the questions that follow:C = 450 + 0.4YI = 350G = 150X = 70Z = 35 + 0.1YT = 0.15YYf = 1550Q.2.1 Calculate the level of autonomous spending in this economyIs savings harmful or beneficial to the economy? Contrast the two views on this issue.
- An economy is said to be closed economy, when: Domestic firms Invest in Industries overseas Imports exactly equal exports, so that trade is balanced The home economy Is Isolated from foreign trade. Saving exactly equals Investment at full employmentThe economy of Ghana is undergoing a crisis following COVID-19 and the invasion of Ukraine by Russia. These twin events have significantly affected the world economy and worsened the economic outlook of most nations. Ghana is experiencing dwindling revenue levels amidst rising government expenditure, high debt levels, low reserves, worsening macroeconomic indicators, downgrade of the economy, among others. In order to deal with these challenges, the government of Ghana has signed onto a $3 billion Extended Credit Facility with the International Monetary Fund (IMF). Some have expressed concerns as to the conditions of the IMF programme. As the Finance Director of your company, you have been tasked to present a proposal to the Board of Directors on how your company will navigate the turbulent terrain of the Ghanaian economy in the face of IMF conditionalities. Your proposal must address the following; Highlight the IMF agreement's main conditions that will likely affect your industry…What are the features of liberalization policy in the economy?