The COVID virus has had an impact on all faucets of our economy. Please discuss the impact it has had on each of the variables below over the net 12 months. Explain if they will increase, decrease, or remain unchanged and the reasoning behind your decision. You do not have to cite the textbook, but all other sources should be cited according to APA format.

proper explanation required

1. C (consumption)
2. I (investment)
3. G (government)
4. Imports
5. Exports
6. Taxes
7. Government budget (T-G)
8. GDP
9. The value of our dollar in comparison to the US dollar.
10. The unemployment rate
11. The supply of money (M1)
12. The prime interest rate

Discuss the role of immigrants in the early19th Century market revolution and new market-based society it created? What were their contributions? How were they treated by those who had immigrated here before them? At the same time...discuss how "Nativism" as an ideology and a philosophy evolved in this period as a response to the arrival of these new immigrants. Has anything changed in how some Americans have viewed and treated the newcomers who have come to the United States in the 150+ years since the Market Revolution?

Recently 2019 Nobel Prize winners and MIT economists Abhijit Banerjee and Esther Duflo (Links to an external site.) discussed the COVID-19 crisis and had the following exchange:

“ED [Esther Duflo]: Back to world economics. We have seen there is a conflict between life and livelihood. This is the most troubling question of our time. How do you feel about it?

AB [Abhijit Banerjee]: I am not going to say how I feel very conflicted. What is most important is to recognise [sic] nobody is going to take this forever. Imagine if a government succeeds in giving effective free PDF, it will not be enough. In a country like India, if the government says there is free food for the next six months people will not accept. People are accustomed to a better life. Sustainability is a key concern.

The lockdown is short and this is sensible. Hopefully that will have some slowing effect. Then you have to let go people. And you have to do a more targeted strategy, hotspots etc. We surmise we will have to fight a battle of around six months. We surmise there will not be too much damage. But the world economy will be in a free fall. Rich countries will be in a lockdown. They are not going to buy anything. The whole world economy is going to shrink. That is a complete given. We are going to see a massive recession.

The question is, in some sense, is this a recession because it is not driven by rich people losing their income and middleclass people losing their home? That there will be a little bit of slack? And once this is over people will start buying.

I think this is less and less likely. The stock markets have collapsed. Middleclass income has shrunk. There will not be a consumption boom at the end of this. Therefore, we will need policies, which will be able to keep the system going. Revive the demand. People will have lost so much income and so much wealth that they will sit on what they have and not spend. That is the core worry.

Is it the end of Second World War and people will start buying things or is it the middle of 2009 crisis and people are afraid to spend? I do not know the answer to this. But I am pessimistic. If this is so more intervention is the way to go.

I think in India we are being too conservative. Oil prices are low. Print some money and do not think of inflation. We need to be quantitative in India and in large sums.

ED: The issue is how to reach money to the people.

AB: In USA as well. This is a time to go wild. Go Keynesian” (Banerjee & Duflo, 2020).

Banerjee and Duflo feel the economic issue that needs to be addressed is demand and getting money to people so we can consume and increase output. They also seem skeptical that there will be lots of pent up consumption once the lockdowns are lifted.

Do you agree, disagree or would you amend Banerjee’s and Duflo’s arguments in light of our fundamental equation (Y = C + I + G + NX) and the aggregate demand and aggregate supply model? Briefly explain.

Suppose you invest $200 per month for a period of 30 years.

a) How much money would you have at the end of the 30-year period, assuming that the yearly interest rate is 12% compounded monthly? You can assume that the payments are deposited at the end of each month. (Hint: write the amount accumulated in the bank for the first few months, and try to get a pattern out of that.) (answer: $698,992.83)

b) Using the same approach, indicate how much you would have at the end of 35 years? (answer: $1,286,191.83)

A pool maintenance worker puts 0.1 ppm of chlorine in a pool each day, at the end of the day.

a) Assuming that initially, the pool contained 3 ppm of chlorine and that chlorine dissipates at a rate of 15% per day, find the level of chlorine in the pool, in the long run. (answer: 0.67)

b) If it is given that the ideal chlorine level in a pool is 2.5 ppm, what would you advise the pool worker in terms of the amount he should be adding each day? (answer: 0.375)

What were Alfred Marshall's economic perspectives?

Do you agree/disagree?

Suppose the process of producing light bulbs is described by the function q = 2KL2, where q is the number of light bulbs produced, K is the number of capital inputs,and L is the number of units of labor. Suppose the price of capital is $5 per hour, the price of labor is $10 per hour and 16 units of output are produced.
a) Write down the Lagrangian as a function of K, L and λ.
b) Using the Lagrangian framework of cost minimization, show the mathematical relationship between K and L.

c) Whatistheminimumcostofproducing16unitsofoutput? Istheminimumcostequalto30 dollars? Illustrate your calculations

Table 1

The following table shows output per hour produced by the different units of labor.

Table 1

The marginal revenue product of a resource is equal to the product of the marginal product of an input and marginal revenue.

     8.   According to Table 1, if the wage rate is $9 per hour, how many workers should this firm hire?

     9. According to Table 1, the marginal-revenue product of the:

   10.   According to Table 1, if the wage rate is $6 per hour, how many workers should this firm hire?

   11.   Refer to Table 1. If both the wage rate and the price of the good falls to $2, how many workers would the firm hire?

12.­ The structure of the product market as described by Table 1 is:

The unemployment rate in Wisconsin is usually lower than the national unemployment rate.

Group of answer choices

True

False

A major stock market crash occurred in the 1980s while minimum wage fell only slightly, which caused

Group of answer choices

A decrease in the price level and output

A decrease in the price level and output remains constant

Prices and output to both be indeterminable

The total physical damage due to the September 11^th attacks was about $16 billion. The economic damage is estimated to be $30 billion. We can thus estimate that the wealth of the U.S. dropped in the matter of a few hours by about $46 billion, causing

Group of answer choices

Deflation and the unemployment rate to fall

Deflation and the unemployment rate to rise

Inflation and the unemployment rate to rise

Inflation and the unemployment rate to fall

Write to either the President (on fiscal policy) or to the Chair of the Federal Reserve (on monetary policy) describing a specific policy action that you believe should be taken at this moment in time (e.g., lower taxes or buy bonds) and explain why you would take the action (what is currently happening in the economy and what will this action accomplish?)

Which of the following will increase both the price level and real GDP?

Group of answer choices

A nationwide drought that drives up the prices of agricultural products

A reduction in government spending for goods and services

Greater optimism among business executives

The aggregate demand curve is

Group of answer choices

Downward sloping because a reduction in the price level leads to a lower interest rate, causing consumption and investment spending to increase

Downward sloping because a reduction in the price level leads to a higher interest rate, causing consumption and investment spending to increase

Upward sloping because as output is expanded shortages of resources are encountered which cause prices to rise

When inflation is steady and low, the rate at which prices rise is

Group of answer choices

difficult to predict

easy to predict

Which would NOT cause GDP to rise?

Group of answer choices

Between 1970 and 2000 the number of Americans in prison nearly quadrupled, causing government to increase its funding for prisons

Minimum wage rises from $7.25 to $8.25

A stock market boom

In the past decade more people are hiring maids to do the work they used to do themselves

The U.S. economy generates $_______ per year in economic activity. GDP includes all items produced and sold. T/F?

Group of answer choices

18 trillion, false

18 trillion, true

18 billion, false

18 billion, true

The value of GDP can be determined by adding together

Group of answer choices

Compensation of employees, interest, government purchases, and exports

Government purchases, consumption, business investment, and net exports

Compensation of employees, interest, corporate profits, and government purchases

Consumption, compensation of employees, net interest, and government purchases