What is a Bergson-Samuelson social welfare function? Describe some of the different ways an individual’s “utility function” can be interpreted under this approach to social welfare. Explain the relationship between the form the Bergson-Samuelson social welfare function takes and the assumptions we make about interpersonal comparisons of utility.What is a Bergson-Samuelson social welfare function? Describe some of the different ways an individual’s “utility function” can be interpreted under this approach to social welfare. Explain the relationship between the form the Bergson-Samuelson social welfare function takes and the assumptions we make about interpersonal comparisons of utility.

The following events are occurring in the macroeconomy for all U.S.

for 1 through 5 answers the following- a)Aggregate Demand/and or aggregate supply b) if it shifts left or right c) if the macro equilibrium increases decrease or cannot be determined. D) Macroequilibrium real GDP increases, or cannot be determined

1) The value of the dollar has sky-rocketed in international currency markets, As a result, Corciyners are buying less American goods/services shifts

2.) In recent years, OPEC has lowered the price of its oil, a factor of production, significantly

3.) Interest rates are starting to creep up which increases the cost of borrowing for businesses and consumers. shifts

4.) Due to extreme weather, US farmers are producing less

5.) The Trump administration has increased tariffs on Chinese products, and, at the same time, relaxes environmental regulations imposed on firms.

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Suppose the consumption function for the nation is as follows: C= $400 billion +0.75Yd 6).

6.) how much will aggregate demand increase if the government increases purchases by $2 billion?

7) How much will aggregate demand increase if the government increases income transfers by $40 billion?

What are the three main categories of analytics? Briefly describe a possible analytics application from each category in the retail value chain.

5) Philips curve and monetary policy

a) Show on a graph how short-run and long-run Philips curve relates to the ASAD model. How a shock to the aggregate supply can affect the Phillips curve? (11.3 marks)

b) Discuss Friedman’s idea of the long-run versus short-run Phillips curve by including the idea of natural unemployment rate and the role of expected inflation. What is the sacrifice ratio?

c) Explain the idea of rational expectations, inflation targeting, and the Taylor rule.

d) Briefly discuss the set-up and the rational of the Barro-Gordon model for the time inconsistency problem of monetary policy. Do not solve for the game, just explain.

QUESTION

a. Explore the Web for the latest World Internet Users Population Stats for 2019 comparing at least 4 world regions (for example: Africa, Asia, Europe, Middle East) in terms of Internet users distribution % and penetration rate (% population).

b. Apply Porter’s Five Forces analytical framework to the Internet. Your answer should include critical elements supported with evidence/ justification.

1 unit of Currency A costs 1.47 units of Currency B, 1 unit of Currency B costs 0.68 units of Currency C, and 1 unit of Currency C costs 1.03 units of Currency A. Assume that you are starting out with 1,000,000 units of Currency A and that there are no transaction costs. How much money will you make in one set of triangular arbitrage transactions? Round to the nearest unit of Currency A.

3) Aggregate supply, Aggregate Demand (Use graphs for all your answers)

a) Derive the AD curve from the IS-LM model.

b) Discuss what affects the slope of the short-run AS and how. Page 3 of 3

c) In the AS-AD model how does a tax cut affect the natural rate of output, the output level, and the level of prices? (Explain both cases of a long-run and a short-run AS curve).

d) Discuss the notion of the crowding-out of private investment when the government decides to conduct expansionary fiscal policy. (8.3 marks)

Labor Standards and Trade – should international trade policy also include an attempt to impose (US or European) labor standards on other, poorer countries (for example, concerning age, working conditions, number of hours worked per day, etc)? If so, whose standards should be used? Should there be any restrictions on trade in goods produced by prison, or slave, labor? What are the economic implications of doing so?

A local restaurant giving a 10% discount to college students is an example of:

Graph an economy where your actual output is above full employment output. Use the AD/SRAS and LRAS model. Label all axis and lines accurately. a. Identify your potential or full employment output, Yf or Qf. b. Identify the actual output and price level. c. Identify the phase of the business cycle, the economy is operating within and explain how you know. d. Actual output= $750 Million Potential output =$ 600 Million MPC= .5 i. Calculate MPS. (write the formula and show all work) ii. Calculate the Spending Multiplier (write the formula and show all work) iii. Calculate the Tax Multiplier (write the formula and show all work) iv. Identify the type of Fiscal Policy to fix this economic problem. v. Calculate the maximum change to government spending, if this were the only tool utilized. (write the formula and show all work) What direction is the change? vi. Calculate the maximum change to taxes, if this were the only tool utilized. (write the formula and show all work) What direction is the change? vii. Explain how the graph changes. What shifts, what happens to output, unemployment and price level, in the short run? 2. Based off your understanding of automatic stabilizers and the above economic problem. a. Draw a graph of the Government spending and Tax revenue model. i. Label the balanced budget point with the same value as the full employment output above. ii. Label a point on the graph to show what happens when the actual output is below the full employment output. iii. State if the budget is balanced, in a deficit or in a surplus. Explain. iv. Based off the policy in d (v), explain the effect on the budget. 3. Draw the Loanable funds market in equilibrium and label the axis and curves accurately. a. Due to your answer in 2a (iv) explain how the market changes. i. Why does the market change? ii. What shifts and in which direction” iii. What happens to the real interest rate? iv. Based off the interest rate change, how will gross private investment change?

If people voluntarily contribute towards funding a public good, do you think there would be over or under-provision of the public good? Why?

What is the policy ‘remedy’ for each inflation: Demand-pull and Cost-push