a) Using the AS-AD model, graphically illustrate and describe in words what happens to the long-run and short-run equilibrium level of aggregate output and inflation, when the economy is hit by a negative demand shock and the fiscal policy responds to the shock. Make sure you properly label all the axes and curves. Be specific to describe how the fiscal policy can act in this case.

b) Describe the government spending multiplier and how it would affect the fiscal policy response above in part (a).

c) Now, suppose the economy is at the zero lower bound and output is below potential due to a negative demand shock. Explain in words and using the AS-AD model why in this case the fiscal policy impact would be likely bigger and more helpful for the economy?

HISTORY 1930s--- Which of the following programs of the 1930s initiated under Roosevelt’s presidency sought to enforce industrial production quotas, prices, and wages, and was declared unconstitutional by the Supreme Court due to the program bringing too much government control over individuals’ use of their private property?

Exercise 1:

The example exercise is to work through a loan amortization example using Excel. Open Activity 3-Workbook. Go to Exercise 1 worksheet.

The example loan conditions are (enter these values under Loan Terms):

                                                            Loan amount borrowed (principal or pv) $100,000

                                                            Loan interest (rate) is 7.5%

                                                            Loan term (number of payments or nper) is 9 years

                                                            Annual payments of principal and interest

1. Calculate the annual loan payment in cell C7 using the PMT function in Excel. The PMT function is in the formulas under the Financial menu option. In the PMT Menu box, the Rate is the interest rate, nper is the number of payments or term, and PV is the principal amount borrowed (enter this as a negative value). FV and Type should be blank or you can enter 0. Use your mouse and use the cell reference to enter the required entries.
   
2. Write the needed formulas in the Loan Amortization Table given to calculate the interest payment and the principal payment for each period payment.

1^st, Interest Payment: Calculate the interest payment as follows: Interest payment = period interest rate * the outstanding loan balance. Start from Pmt Num 1 and use the loan balance of the previous period. You need to use absolute and relative cell addresses to accomplish this task!

2^nd, Principle Payment: When you make payments on a loan, part of your payment goes for interest on the loan and part goes to pay back the loan (principle). Subtract the Interest Payment from the Annual Loan payment (i.e., principal and interest that you calculated using PMT) to calculate the amount paid on principal.

3^rd, Loan Balance: Subtract the principal payment from the previous period outstanding balance.
In each period, the loan balance is whatever loan balance was left from the previous payment minus principle payment. (Note: Loan Balance in period 0 is the amount borrowed).

4^th, copy and paste the formulas for the remaining 8 payments.

5^th, enter formulas to sum the totals of Interest Payments and Principle Payments in your table.

1. Calculate the total amount paid (Principal + Interest) using values in Term (cell C6) and Loan Payment (cell C7).
2. Use the Excel IPMT formula to calculate the interest payment for payment 3 in D19. Again, enter PV as a negative value.
3. Use the Excl PPMT formula to calculate the principal payment for payment 4 in D17.
4. Check to see if the results of a, b and c are the same as calculated by your Loan Amortization Table.

What is currency manipulation and how do governments do it? Is China a currency manipulator? What does China gain by manipulating its currency? Is it a critical issue in the global economic dynamics? There are conflicting reports on the subject. Whats your opinion?

Will the Saudi economy rise if vision 2030 succeeds?

about 500 words

Please come up with a diagram (i.e. using a two-player decision matrix such as the Prisoner's Dilemma example in the Learning Notes) for an original game theory/prisoner's dilemma scenario (either in business, politics, or your own personal life), and explain what would be the most likely outcome of the scenario you have chosen.

more than 200 words please

a.Please explain what is the difference between a change in demand versus a change in quantity demanded?

b.Why is it so important to differentiate between these similar-sounding terms?

c.What role do elasticities play in the decisions that individuals and firms make?

d.Consider a product you recently purchased – please state the product, and explain if you feel its demand is elastic, or inelastic, and why.

SOCIAL SECURITY OLD AGE INSURANCE IS THE TOPIC

These are the topics to include:

• Part 1: Use positive economics* to analyze the current situation.

• Part 2: Use normative economics** to analyze the current situation. Do you believe the current situation comes down too much on the side of equity or efficiency? Explain.

• Part 3: Come up with a plan for how you believe the situation could be improved. In this section, you will need to come up with at least one (1) specific policy that the government could implement and how you believe this policy will change the situation both domestically and potentially globally.
  *Positive economics is an analysis of facts; what is.

**Normative economics uses economics to make value judgments about the situation.

If you were the Economic Advisor to the President what would be your recommendation on nation's both domestic and international economic policy. Make sure you make economic nor emotional arguments regarding economic policy.

• You have to read and gather information concerning economic developments and economic trends, both current and prospective. Then analyze and interpret current economic developments, review programs and activities of the Government.
• You can provide recommendations for national economic policy to promote employment, production, and purchasing power under free competitive enterprise.
• Discuss if such developments and trends are good for economy or not and how can country achieve better if you suggest any new policy.
• Discuss if national economic policies to foster and promote free competitive enterprise, avoid economic fluctuations, increase employment, production, and purchasing power;
• Discuss how to develop the US economy. You can discuss on the following points but not limited to- Booming Stock market, corporate investments and wealth creation; Job or employment opportunities for better futures; Needed tax cuts and reforms; Stronger businesses in different industry, startups, small business, Education

1A.

The IS curve is downward sloping for which of the following reasons?

1B. In Keynes' liquidity theory of the interest rate wealth is considered fixed and individuals choose a portfolio of which of the following two assets

1C. For Keynes swings in investor expectations could be wild, erratic and characterized by herd behavior. Keynes called these investor sentiments?

1D.

The figure depicts the effect of a decline in the real interest rate on investment. What could move the market to a point located at r1 and I0 ?

1. A liquidity trap occurs at a very flat section of the LM curve. This can be cause by an extreme interest elasticity of money. Which of the following are associated with a liquidity trap?

1B. Which of following are determinants of money demand for the Keynesian model? (select all that apply)

1C. Keynes believed that the slope of the LM curve was rather     and that the slope of the IS was rather      . Thus fiscal policy would be an effective remedy for economic downturns.

According to the quantity theory of money, an increase in the money supply only raises the
price level in the long run. This is because

A. the long-run aggregate supply is unaffected by the money supply, while the aggregate
demand increases when the money supply increases.

B. the long-run aggregate supply is lower when the money supply increases, while the aggregate demand is unaffected by the money supply.

C. the short-run aggregate supply and the aggregate demand both increase.

D. the effects of an increase in the money supply on the long-run aggregate supply and on
the aggregate demand cancel out.

On April 9, Statistics Canada published Labour Force Statistics for March 2020. Between February and March, 2020, employment fell by 5.3% nationwide. Last year, instead, the change in employment between February and March 2019 was 0%.

Using the model discussed in the lecture notes on chapter 6, discuss the impacts that this change in employment will have on GDP, consumption, national saving, the trade balance and the real exchange rate.

Remember that Canada is a small open economy currently running a small trade deficit.

There is no need to upload graphs in this question, simply discuss the impacts in words.

Do you agree that the changes in the economy will have a long-term effect after the covid 19 pandemic?