Suppose an economy under fixed (pegged) exchange rates is currently facing:

• a balanced current account (NX = 0),

• a negative output gap (excess unemployment), and

• a balanced budget.

• Using an NX/ (S-I) model depict the above situation in relation to the internal and external balance diagrammatically.

• Now suppose as an advisor to the government your recommendation is to employ an expenditure-changing policy to attain the Internal Balance. Explain in details what this policy is made up and what the consequences of your recommendations will be. Show diagrammatically and explain fully.

• In light of your answer above would you agree with this statement? “A trade deficit and low savings go hand in hand.” Evaluate fully.

• Defend this proposition “attaining the two policy objectives of internal and external balance requires two polices”. Explain and illustrate diagrammatically.

If Mamata was able to work 24 hours a day she could produce 4 tonnes of rice (the principal food crop cultivated in West Bengal) each day. You are told that Mamata’s utility maximising choice is to work for 8 hours and produce 3 tonnes of rice.

Now you are informed that Mamata is no longer an independent farmer. Instead, she works as a bargadar and rents the land on which she works from a landowner and keeps 75% of the rice that she produces (as is the case after the adoption of Operation Barga).

Q7 Using your answer to Q6 as a starting point, show (on a separate model) Mamata’s new optimal choice as a sharecropper. Again, be sure to label and define each of the relevant points and lines on your diagram. List each of the assumptions you made when developing your model.

Q8 Discuss how the models developed in Q6 and Q7 can be used by economists to evaluate the fairness of economic outcomes?

With the establishment of the World Trade Organization (WTO) in 1995 (previously General Agreement on Tariffs and Trade (GATT)) tariffs applied by many countries have been significantly reduced. Nevertheless businesses do still face problem because of the mushrooming of Non-Tariff Measures. discuss

examples of where a country/Today/ has an Absolute Advantage, and why there is an increase in Comparative Advantages in today's economy.'

My industry is Optometry:

7. What are the impacts of the macroeconomic business cycle on demand in your industry? Is demand in your industry procyclical or countercyclical? Explain. If demand in your industry is insensitive to the business cycle, explain why this is so?

8. What are any major impacts of the macroeconomic business cycle on supply for your industry – i.e. how might different phases of the business cycle impact your industry’s ability to acquire inputs such as labor, capital or materials? Explain. Note: Do not discuss responses to demand side changes but look for impacts that are independent of demand changes.

Many people have different concepts or ideas about the study of economics.

It would be interesting to know what are your thoughts as it relates to the study of economics and its importance in society.

Suppose the Madison city government imposes a price ceiling on the rental price of apartments.The demand for rental apartments is given by the equationP= 1500−0.2Q, and the supply is given by the equationP= 0.2Q+ 300.

(a) Without a price ceiling, what would be the equilibrium quantity and price? Calculate the consumer surplus (CS) and producer surplus (PS). Graph the demand and supply curves and shade the areas for CS and PS on the graph.

(b) Suppose the price ceiling is $700. How large a shortage will this create?

(c) Draw a graph representing the market outcome with the price ceiling. Calculate CS andPS.

(d) How does total surplus change due to the price ceiling?

(e) Suppose the government decided to instead implement a price ceiling that only created a shortage of 500 apartments. What price ceiling would accomplish this?

distinguish between microeconomics and macroeconomics

How does the Central Bank can decrease the interest rates in the economy using monetary policy?

1. Determine if the following statements are correct and then explain briefly.

a. Policymakers in a closed economy could promote economic growth by encouraging saving.

b. When the government removes the minimum wage law, natural unemployment will fall.

c. If inflation is lower than expected, creditors gain at the expense of debtors.

d. Increase unemployment benefit payment to the unemployed will increase unemployment.

Which sets of data can be used to identify business cycles? Select all that apply.
Choose one or more:A.real GDP data

B.salary or wage data

C.unemployment rate data

Write at least one paragraph with a minimum of 100 words on the Tang Dynasty period in China and why that period was considered the “Flowering of the Chinese Civilization.” Include a look at the inventions, the literature (poetry) and interaction with other cultures in your discussion.

5. In recent years, about twenty states have passed so-called medical marijuana laws. Typically, these laws permit individuals to lawfully purchase marijuana from licensed stores, providing they have a letter from their doctor recommending its uses. In a number of these states, the price of medical marijuana is observed to be higher than that of the pot sold illegally just down the street. Use the reasoning in this chapter to explain (a) why people would be willing to pay a higher price for the medical marijuana, and (b) why it might be misleading to compare the observed price of the medical variety with the observed price of the illegal weed.