Explain the neoclassical theoretical argument that competitive capitalism should automatically self-adjust to achieve full employment equilibrium. During the Great Depression, real wage did not increase. Why was this economic fact in contradiction with the neoclassical (and Keynes’s) theory of employment? How was Keynes’s theory of interest rate and saving different from the neoclassical one? Why did Keynes believe that there were situations where monetary policy would be ineffective to bring the economy out of depression?

Problem 4

Consider the following economy:

(e) Calculate the marginal leakage rate.  (0.5 mark)

(f) Assume that the natural rate of output for this economy is estimated as $1,200,000 million.

(i) Is this economy facing a recessionary or inflationary gap?  (0.5 mark)

(ii) Illustrate the gap you identified in part (i) above using both the AS-AD Model and the Aggregate Expenditure Model.  (1 mark)

(iii) Calculate the output ratio for this economy (0.5 mark)

(iv) If the government wishes to move the economy to its natural rate, will it need to increase or decrease spending? Calculate by how much it will need to change its spending.  (1 mark)

(v) Consider the policy action undertaken in part (iv) above and illustrate the impact on the money market.  (1 mark)

(vi) Given the impact on the money market determined in part (v) above, explain how this could affect the exchange rate market.  (1.5 marks)

(vii) Explain the policy action the government could undertake if it decides that it wants to move the economy to its natural rate but doesn’t want the action to affect its budget position.  

1) What is good about rent control

2) What is bad about Rent Control

3) Who is Richard Thaler

https://youtu.be/bERm-50CApk

https://youtu.be/BWUtLSfb9zs

A proposal is made to ban the use of a particular type of gear by vessels engaged in a certain saltwater fishery. indicate conceptually how costs would be measured in this case. how might the necessary data be obtained?

How independent is the central bank? What factors contribute to and what factors work against independence? Discuss arguments for and against the independence of the central bank.

16. Suppose the central bank increases the money supply in order to increase the equilibrium level of GDP. Which of the following conditions would lead to a large increase in GDP given the increase in the money supply?

A. A small marginal propensity to consume

B. A very steep investment schedule

C. A very steep money demand schedule

D. All of the above conditions

In the midst of COVID-19, it is reported that over 195 million people will lose their jobs and many small businesses have already closed around the world as a result. Central Banks across the world have been advised to institute policies to help stabilize their economies. Discuss whether central banks should implement expansionary or contractionary monetary policies to achieve stabilization Discuss arguments for and against each policy direction. Discuss tools that can be used.

please could you describe  Pareto’s ideas within Conservative perspective?

NFL-sponsored studies of the economic impact of the Super Bowl on host communities typically generate large numbers. They report the impact of the 1999 Super Bowl on the Miami area was $396 million. However, studies that compared January spending in six Super Bowl host cities to spending in those cities during a series of non Super Bowl years before and after the event found the net economic impact of a Super Bowl is virtually zero. EXPLAIN.

Further discuss how your answer may change for a Super Bowl in Seattle.

Consider the following technologies (1-6). For each, provide the following:

1. What type of technology it is. (1pt)

2. What the returns to scale are. (1pt)

1. q = 5.2x10.2x2

2. q = x10.3x20.4

3. q = 5x1 + 1.77x2

4. q = 0.55x10.55x20.47

5. q = 2x11.3x20.6

6. q = 0.2x1 + 0.7x2

The current administration is offering the 2 trillion dollars stimulus package to maintain the loss due to the unprecedented chaos caused by the coronavirus.

Categorize each item into monetary policy versus fiscal policy.

Explain how each item of this package can help the economy.

. A natural monopolist has the total cost function C(Q) = 500 + 5Q and faces the inverse demand curve P = 100 – Q

a) Find the monopolist’s price, quantity, profits, consumer surplus and deadweight loss if the monopolist is not constrained by a regulator (you probably want to draw a picture to help you answer CS and DWL)

P = _________ Q = _________ π = _________ CS = ¬_________ DWL = _________

b) A regulator constrains the monopolist to marginal cost pricing and will subsidize the firm to stay in business and earn 0 profit. Find the monopolist’s price, quantity, subsidy, consumer surplus and deadweight loss (ignore welfare losses associated with funding the subsidy).

P = _________ Q = _________ subsidy = _________ CS = ¬_________ DWL = _________  

c) A regulator constrains the monopolist to average cost pricing. Find the monopolist’s price, quantity, consumer surplus and deadweight loss.

P = _________ Q = _________ CS = ¬_________ DWL = _________

3. You are thinking about starting a bee keeping business to produce honey. You also plan to sell pollination services to almond growers in California. Below is the cost function you have estimated for producing honey and pollination services with 450 hives:
C(QH, QP) = 5,000 + 12QH + 100QP + 0.002 QH QP
where QH is the number of pounds of honey produced and QP is the number of acres of almond trees pollinated.

(5) a. You have contracted to produce 3,000 pounds of honey and pollinate 1,000 acres of almonds. What would your costs be if you fulfilled these contracts with a single set of 450 hives?

(5) b. What would your total costs be if you operated a set of 450 hives to fulfill your honey contract and a separate set of 450 hives to fulfill your pollination services contract?

(5) c. What do your results in parts a and b tell you about the about economies of scope for honey production and pollination services when you produce 3,000 pounds of honey and pollinate 1,000 acres of almonds?