Suppose that you are responsible for economic policymaking in your country.Your country is experiencing an economic...

Suppose that you are responsible for economic policymaking in your country.Your country is experiencing an economic recession and needs a fiscal stimulus. Which one would be more effective in boosting the economy a temporary cut in income taxes or a temporary cut in sales taxes of durable goods? (using graph to show the result)

Expert Solution

Rahul Sunny answered 7 months ago

You are on the council of economic advisors team for the president. The country is experiencing...

You are on the council of economic advisors team for the president. The country is experiencing recession. The president is asking your team for advice. Explain in details what kind of monetary policy would the Federal Reserve probably follow if the country was in a severe recession with high unemployment and falling prices. Why? Describe the details of each tool they will use and impact on the economy as a whole.

You are hired as an economic consultant by a developing country that is experiencing high rate...

You are hired as an economic consultant by a developing country that is experiencing high rate of unemployment, widespread poverty, and out-migration. What economic strategy would you formulate to achieve higher economic growth in the long run aimed at raising the standard of living of the country's population? What effect the prescribed policy measure would have on the nation's PPC?

Suppose that you are an economic adviser to the government of Country A. The country has...

Suppose that you are an economic adviser to the government of Country A. The country has a current account surplus and is facing gathering inflationary pressures. a. Show the location of the Country A on the II-XX diagram b. What would your advice be on how the exchange rate should be adjusted? c. What would be your advice about the fiscal policy? In that regard, you are given three pieces of data. First, the current account surplus is big, in...

Do economists have a role in policymaking on non-economic topics?

Suppose the country is currently experiencing a recession. What type of fiscal policy can the government...

Suppose the country is currently experiencing a recession. What type of fiscal policy can the government use to fight off recession?

You are an economic advisor in a developing country with a fixed exchange rate. While your...

You are an economic advisor in a developing country with a fixed exchange rate. While your country has an open capital account, your financial markets remain imperfectly integrated with those of the rest of the world. The central bank in your country targets the stock of domestic credit. One day, an IMF team arrives and convinces the Finance Minister that your country’s fiscal deficit is excessive. The Finance Minister persuades the parliament to pass a tax increase to reduce the...

Policymaking and politics are messy businesses. How do you think the policymaking models we reviewed fit...

Policymaking and politics are messy businesses. How do you think the policymaking models we reviewed fit the policymaking process? Where do they fall short and where do they hit the mark? Please provide an example.

You are responsible for characterizing a novel mutant version of PAH from a patient experiencing mild...

You are responsible for characterizing a novel mutant version of PAH from a patient experiencing mild symptoms of the disease. You first task is to purify the enzyme responsible. You decide to generate a construct to express the protein in E.coli. Step 3-1: PCR to amplify the mutated gene. You have the following samples: a. Genomic DNA from the patients hepatocytes. b. Genomic DNA from the blood cells. c. mRNA from the hepatocytes d. mRNA from the blood cells e....

Suppose a country that's currently experiencing a recessionary gap wishes to produce at its potential output...

Suppose a country that's currently experiencing a recessionary gap wishes to produce at its potential output level. Holding everything else constant, identify which of the following policy initiatives would surely be counter-productive. (Choose all that apply) The government initiates policies that encourage private investment spending. The government lowers taxes but does not lower its spending. The government borrows money from the public and uses it to increase its own spending on infrastructure projects. A side effect of the increased borrowing...

Suppose you are the governor of the Bank of Canada and the economy is experiencing a...

Suppose you are the governor of the Bank of Canada and the economy is experiencing a sharp rise in the inflation rate. What actions would you take in: a. open-market operations sell bonds buy bonds make advances to the chartered banks change the overnight lending rate b. the bank rate raise the rate lower the rate set the rate at the lower bound of the Bank of Canada's operating band for the overnight lending rate set the rate lower than...

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