Consider the following national income model:

? − ? − ?< − ?< = 0

? − ? − ?(? − ?) = 0

? − ? − ?? = 0

where Y= income, C=consumption, I= investment, G= government spending, T= taxes

?, ?, ?, and ? are parameters: ? is positive because consumption is positive even if disposable income (? − ?) is zero; ? is a positive fraction because it represents the marginal propensity to consume; ? is positive because even if ? is zero the government swill still have a positive tax revenue; ? is a positive fraction because it an income tax rate that is less than 100 percent.

?, ?, and ? are endogenous variables whereas ?, ?, ?, ?, ?, and ? are exogenous variable.

Part I. Using the implicit function rule, find the income-tax multiplier that explains how the income tax rate ? causes the (equilibrium) income to change. Does the result make economic sense? Explain its sign and economic implication.

Part II. In the same way, find how the government spending affects the (equilibrium) consumption. Does the result make economic sense? Explain its sign and economic implication.

Case Study-2

International trade theories argue that nations should open their doors to trade Conventional free trade wisdom says that by trading with others, a country can offer its citizens a greater volume and selection of goods at cheaper prices than it could in the absence of it. Nevertheless, truly free trade still does not exist because national governments intervene. Despite the efforts of WTO (World Trade Organization) and smaller groups of nations, government seems to be crying foul in the trade game now more than ever before.

We see efforts at protectionism in the rising trends in governments charging foreign producers for "dumping" their goods on the world market. Worldwide, the number of anti-dumping cases that were initiated stood at about 150 in 2014, 225 in 2015, 230 in 2016, and 300 in 2017.

There is no shortage of similar examples. The US charges Brazil, Japan, and Russia with dumping their products in the US market as a way out of tough economic times. The US steel industry wants the government to slap a 200 percent tariff on certain types of steel. But car makers in US are not complaining, and General Motors even spoke out against the anti-dumping charges — as it is enjoying the benefits of low cost steel for the use in its auto production. Canadian steel makers followed the lead of the US and are pushing for anti-dumping actions against four nations.

Emerging markets too, are jumping into the fray. Mexico recently expanded coverage of its Automatic Import Advice System. The system requires importers (from a selected list of countries) to notify Mexican officials of the amount and price of the shipment 10 days prior to its expected arrivals in Mexico. The ten day notice gives domestic producers advance warning of incoming low priced products so they can complain of dumping before the product clear customs and enter the market place. India is also getting onboard by setting up a new government agency to handle anti-dumping cases.

Why dumping is on the rise for the first place? The WTO has made major inroads on the use of tariffs, slashing them across every product category in recent years. But the WTO does not have the authority to punish companies, but only governments. Thus the WTO cannot pass judgments against individual companies that are dumping their products in other markets. It can only pass the rulings against the governments of the country that imposes anti-dumping duty. But the WTO allows countries to retaliate against nations whose producers are suspected of dumping when it can be shown that:

i) The alleged offenders are significantly hurting the domestic producers.

ii) The export price is lower than the cost of production or lower than the home market price.

Supporters of anti-dumping tariff claim that they prevent dumpers from undercutting the price charged by the producers in a target market and driving them about of business. Another claim in support of anti-dumping is that it is an excellent way of retaining some protection against the potential dangers of totally free trade. Detractors of anti-dumping tariffs charge that once the tariffs are imposed they are rarely removed. They also claim that they cost companies and governments a great deal of time and money to file and argue their cases. It is argued that the fear of being charged with dumping causes international competitors to keep their price higher in the target market than would have otherwise be the case. This would allow domestic companies to charge higher prices and not loose market shares forcing consumers to pay more for their goods.

Required Question

Questions 01: Based on the above case study, evaluate the effects of dumping on domestic business and also on the consumers

Question 02: As we have seen WTO cannot currently get involved in punishing individual companies for dumping. Its action can be only directed towards governments of countries. Do you think this is a wise policy? Justify your answer.

Use the information below to answer the folloiwng question: Inverse demand function:

P = 300 – 0.5Q

Marginal revenue: MR = 300 – Q

Total Cost function: C = 4000 + 90Q

Marginal Cost: MC = 90

The equilibrium P and Q under Duopoly are: P = 160, Q= 280 with each firm's output = 110

Select one: True False

1) The table below lists the number of people by labor force classification for the country of Grenyarnia.

1. Calculate the number in the labor force, and the unemployment rate.

2. Calculate the number in the adult population, and the labor force participation rate.

3. Suppose 8 million people who were previously employed become discouraged workers. Recalculate the unemployment rate and the labor force participation rate.

4. Why might a favorable change in the economy, such as technological improvement or a decrease in the price of imported oil, be associated with an increase in frictional unemployment?

In an economy with marginal propensity to save (MPS) of .4, what effect will an increase of $100 in government spending have on equilibrium and what effect a tax cut of $100 will have on equilibrium.

Suppose the Federal Reserve sets the reserve requirement at 10 percent, banks hold no excess reserves, and no additional currency is held.

Instructions: In part a, round your answer to 2 decimal place. In parts b and c, enter your answers as whole numbers. Include any negative signs if necessary.

a. What is the money multiplier?

b. By how much will the total money supply change if the Federal Reserve changes the amount of reserves by -$50 million?

     $ million

c. Suppose the Federal Reserve wants to decrease the total money supply by $600 million. By how much should the Federal Reserve change reserves to achieve this goal?

     $ million

Why is it important to engage the payer early in the process of drug development and commercialization? Describe one payer engagement strategy that you think may have the greatest impact on value creation for personalized medicine.

What are three criteria used by payers in the US to determine if a drug can be covered under their plans?

we know that United States is at least using both monetary policy (by lowering the interest rate to be 0%) and fiscal policy (by having 2 trillion USD ready for spending on infrastructures). You have done the analysis for the fiscal policy. As for the monetary policy, it is similar in forcing an economic expansion but through the money market.

Given the current condition with the corona virus pandemic still ongoing, and the lockdown has not been lifted,

1. How successful do you think the monetary policy (only) would be? and why?
2. How successful do you think the fiscal policy (only) would be? and why?
3. How successful is the combination of both monetary policy and fiscal policy? and why?
4. Should the government consider quantitative easing? and why?

What is the role of segmentation and targeting in marketing?

In view of the Coronavirus epidemy, the Bank of Canada along with most advanced nations’ central banks has cut its policy interest rate by 1.5% to 0.25%.

1. Explain the Bank of Canada’s intention and motive behind this policy.
2. Employing the model of interest parity, discuss with the help of a diagram the expected impact of these interest cuts on the exchange rate (Canadian dollar).
3. Now explain how the expected change in the Canadian dollar is hoped to affect Canada’s net exports (NX) and Canada’s GDP.

The Virus has been blamed for causing much economic havoc in the world and in the United States. In reality, much of the damage has been cause be governments using their police power to prohibit beneficial economic activities from occurring. Assume the Virus scare is over. You are Chairperson of the Federal Reserve System. What monetary policies would you implement to get the US economy improving and growing, if any. You must explain correctly and in detail what they are and how they would work. This means going into detail about their transmission mechanisms. You may choose more than one. You have to convenience your skeptical professor that you know what you are talking about.

Use WDI data and your textbook (Grabowski et al) to answer the following question. Both India
and China progressed from slow to modest growth before 1980 to more rapid rates of growth after
1980.
(a) What similarities can be drawn between the two countries’ experiences?
(b) What are some of the fundamental differences in the two countries’ experiences