How does investment in capital goods and infrastructure contribute to economic growth?

How could the omission of net exports from GDP overstate production? Or understate it?

How will a sustained appreciation of the U.S. dollar over time likely affect U.S. net exports?

Assume that the United States raises tariffs on products imported from other countries. What effect will this U.S. trade policy have in the short run if other nations do not change their policy? What effect will this policy have in the long run if other nations retaliate?

What two solutions did Keynes suggest as appropriate government policies in order to close a recessionary gap? Does the assumption of stuck prices hold true when the economy moves close to its potential output? Explain.

How do high rates of inflation affect the acceptability of a nation’s currency?

ABC, Inc., is considering the purchase of a digital camera for the maintenance of design specifications by feeding digital pictures directly into an engineering workstation where computer-aided design files can be superimposed over the digital pictures. Differences between the two images can be noted, and corrections, as appropriate, can then be made by design engineers. The capital investment requirement is $350,000 and the estimated market value of the system after a six-year study period is $120,000. Annual revenues attributable to the new camera system will be $130,000, whereas additional annual expenses will be $25,000. You have been asked by management to determine the IRR of this project and to make a recommendation. The corporation’s MARR is 20% per year.

1. Solve first by using linear interpolation
2. And then by using a spreadsheet.

how does the government regulate the healthcare market place to protect the welfare of the public?

The current administration is offering the 2 trillion dollars stimulus package to maintain the loss due to the unprecedented chaos caused by the Coronavirus. (Let’s say this package can inject 4 trillion dollars into the economy this year while including the multipliers).

• What will be the unemployment rate during this summer? How about at the end of the year?

The US unemployment rate in March 2020 was 4.4%. It is expected to increase due to lockdowns and the fact that it will take some time for businesses, especially small ones, to recover. My estimation for the summer unemployment rate would be 5.5%.At the end of the year hopefully quite a lot of businesses would have recovered. My estimate for the end of year business rate would be 4%.

• Use GDP per capita in the US in 2019, calculate the total number of unemployed people because of the Coronavirus in 2020, and estimate the total loss in the economy, due to the unemployment.
• 2019 USA GDP per capita $65,111.6
• Total US labor force is ~165 million.
• The US unemployment rate in December 2019 was 3.6%. This has jumped to 4.4% now, an increase of .8%.
• .8%x165= 1.32 million
• Total loss in economy due to unemployment= 1.32mil x65111= 85.947 billion

If businesses lose 10 percent of their value by the end of this year (despite the stimulus package), what is the total loss in the economy because of that (use Wall Street Journal website to derive the total assets of the US companies)?

• American total assets for the quarter ending December 31, 2019 were $525.064B.
• A 10% loss from that is 52.5 billion

• What will be your estimation of the total GDP in 2020? Calculate the growth rate (from 2019 to 2020)

My estimation is that there will be contraction in US economy in first 2 quarters, and then slight expansion in the last 2 quarters. Total growth would be level, at best at .5%. So, total GDP in 2020

=GDP in 2019x1.005

=21.44x1.005= $21.5472 trillion

NEED ANSWERS TO THE FOLLOWING

• Based on your above calculations, roughly compute the saving rates in 2020 if the population growth rate would be 0.5 percent, depreciation rate 3 percent, and technological progress 1 percent (considering the current crisis). Explain the “ODD” result you get!

• Explain and calculate the total debt for the US at the end of 2020 (part of the debt is due to the stimulus package, and the other part is because of the reduction in government’s revenue from taxation).

• Who will pay this debt, and how will this debt show itself in the future of the US economy?

• Who is (actually) responsible for this substantial cumulative debt? Support your claim

Digital Business Analysis Report Review

How has digital business altered practices and procedures in marketing over the past 5-10 years?

(300 words)

The convergence theory states that:

Question 64 options:

Over the last several years, Canada has:

Question 65 options:

Complete the following sentence. Commodity-backed money is:

Question 66 options:

When the prevailing market wage is above equilibrium, we say:

Question 25 options:

An increase in productivity will cause the:

Question 26 options:

In financial markets, the practice of securitization:

Question 27 options:

If money has intrinsic value, it has:

Question 28 options:

The long-run response to an increase in the growth rate of the money supply is shown by shifting a. the short-run and long-run Phillips curves left. b. the short-run and long-run Phillips curves right. c. only the short-run Phillips curve left. d. only the short-run Phillips curve right.

One reason the government enacts fiscal policy instead of waiting for the economy to correct itself is:

Question 12 options:

Fiscal policy most directly affects the economy by increasing or decreasing:

In the long run, changes in prices of goods and services paid by consumers:

Assume that the composite price level P is fixed. If the government wishes to decrease equilibrium GDP by $3,000b, and the MPC is 0.5, it should:

The Impact of the Corona Virus (COVID - 19) on the World Economy:

(1) Can It Cause a Global Economic Recession?

(2) How is COVID-19 Affecting the Supply Chain and International Trade?

Explain the two main forms of stated-preference non-market valuation. Discuss when and why you might choose to use one of them over the other.