Critical thinking. Research the latest news and extracts 3-5 latest microeconomic and macroeconomic events in the world!

Suppose that a bank has a required reserve ratio (target reserve ratio) of 10%, reserves of $2.2 billion, loans of $17.8 billion, deposits of $20 billion, and no other liabilities or assets.

a. (4 points) What is the amount of loans at equilibrium?

b. (4 points) Suppose that the Bank of Canada’s currency issue (legal tender) is $52 billion, private bank deposits at the Bank of Canada are $2 billion, currency in circulation is $36 billion, and the target reserve ratio (required reserve ratio) of banks is 12.5%. What is money supply at equilibrium?

c. (7 points) Suppose that the Bank of Canada sells bonds to combat inflation. What is the effect of the sale of bonds on the equilibrium interest rate, the level of investment, and aggregate expenditure and GDP in the short-run? Show graphically. Use the subscript ‘0’ to represent the original equilibrium and ‘1’ to represent subsequent changes.

Suppose that desired consumption and desired investment are given as: C = c1 + cY (Y − T ) − cr r I = i1 − irr G = G0 T = τ1 + τ Y (a) Derive the equation for IS curve and draw its graph assuming c1 = 200 i1 =200 G=196 cY = 0.8 ir =500 τ1 =20 cr = 500 τ =0.25 (b) What would happen to the IS curve when lump-sum taxes, τ1, increases? (c) What would happen to the IS curve when income tax, τ, increases? Sabancı University Assignment 6 1. Consider labor market in an economy. In a classical model, you can think that each worker comes with one unit of effort. In a Keynesian model effort makes a difference. Suppose that the efficiency wage is above labor market equilibrium. (a) Draw a graph where you can show both employment and unemployment predicted by each model. Discuss unemployment under both models. (b) Now suppose a negative productivity shock hits the economy. How would employment and unemployment change under both Classical and Keynesian model. Show your results on a graph. (c) When the economy is hit by a negative productivity shock, workers are worried about their jobs and they start working harder, that is they increase their effort, say from two to three. (Note that in the Classical model this is not possible. their effort level is still unity.) How would this affect employment, unemployment and output in the Keynesian model? (d) The parliament passes a new law requiring balanced budget, that is G = T . How would this new law affect the IS curve? 3) In some macroeconomic models, desired investment depends on both the current level of output and the real interest rate. One possible reason that desired investment may depend on output is that, when current production and sales are high, firms may expect continued strong demand for their products in the future, which leads them to want to expand capacity. Algebraically, we can allow for a link between desired investment and current output by replacing the desired investment equation in the previous question with I = i1 − irr + iY Y, where iY is a positive number. Use this alternative equation for desired investment to derive the algebraic expressions for the IS curve.

Suppose that two polluting firms have marginal abatement costs given by the following equations:

MAC1 = 50 – 5e1 and MAC2 = 40 – 4e2

where e1 and e2 are the emission levels of each firm respectively. The regulator’s goal is to reduce total pollution from the two firms to 8 units.

a) Suppose that the regulator requires that each firm reduce their emissions to 4 units (i.e. they use a uniform standard). Compute each firm’s total abatement costs under this uniform standard and show graphically.

b) Find the cost effective allocation of the 8 units of emissions to the two firms. Compute each firm’s total abatement costs under the cost effective allocation and show graphically.

c) Now, compare the results between parts a) and b). Which allocation of emissions (uniform or cost effective) does each firm prefer and why? Which allocation does society prefer and why?

11-19 how would you retain employees who are sitting on lucrative stock options and could walk out the door tomorrow knowing that they would never have to work another day in their life ?use various motivation theories to support your answer

Identify 20 stakeholders (SHs) in "Amazon, Instacart Grocery Delivery Workers Strike For Coronavirus Protection And Pay". Put them in a table and in one column, briefly describe each SH in terms of one or more of the SH typologies described. In another column, briefly list their stakes in terms of something the SH has to gain or lose by possible actions of these companies. And finally, in a third column, list to which part of the macro-environment this SH belongs (e.g. government, community, employee, owner/shareholder or natural environment).

Please describe the concept of investment spending, as well as what will happen to the aggregate demand curve if investment spending is increased autonomously. Also provide an example of spending that a macroeconomist would consider “investment spending.”

Please I need today answer for This question and it is very important and I need solution for this issue with all the details , and help me with all the details.Please write your answer to me by typning  not by hand writing, so that I can read and understand your answer clearly.thanks in advance/Ha

Q.1) Wages in the US have been steadily increasing since the 1980s. This question is about relating this increase in wages to changes in female labor supply over time. a) Using the basic static model of individual labor supply, discuss both graphically and explain in your own words how this increase in wages can have contributed to the increase in female labor force participation in the US over time.

b) What impact will the increase in the wage rate have on hours worked (of females already working in the 1980s)? Discuss all relevant effects. Which effect dominates if hours worked increase following an increase in the wage rate? You do not need to draw a graph for this answer.

ECB changing stance

The main objective of the European Central Bank (ECB) is to maintain inflation in the euro area at below 2 percent to achieve this strategy of price stability; it follows a two-pillar analytical approach to assess the risks to price stability and its monetary policy actions: the economic analysis and the monetary analysis. The monetary pillar, which makes use of the quantity theory of money, was heavily criticized by many in that it was not relevant to monetary policy decisions. In November 2013, a paper published by the ECB itself casted doubt on the effectiveness of the quantity theory of money stating that countries with moderate or low inflation don’t fit this theory.

9. What is implied by this news clip about the ECB’s position prior to 2013 about the velocity of circulation, the equation of exchange, and the quantity theory of money?

10. What is implied by this news clip and the ECB paper about both the position of the critics of the ECB’s use of monetary analysis and the ECB’s position after 2013 concerning the velocity of circulation, the equation of exchange, and the quantity theory of money?

What is the environment scanning in the BPOLAND case study

Which of the following is true of the early stages of a recovery?

a. job creation is rapid but the unemployment rate stays high
b.   job creation is slow and the unemployment rate stays high
c.   job creation is rapid and the unemployment rate falls quickly
d.   job creation is slow, but the unemployment rate tends to fall very quickly

Which of the following statistics does the general public usually watch closely in order to assess or determine how the macro economy is doing?

a.    the inflation rate derived from the CPI-U
b.    the inflation rate derived from the CPI-W
c.    New Jobs Created
d.    the Unemployment Rate
e.    real GDP

“Planning” often has the connotation of being precise and optimal. However, in actual practice, the goal of “material balancing” in the Soviet Union was to
a.    simply get a roughly balanced plan
b.    get a plan that maximized consumer goods production
c.    get a plan the was the very best plan for the economy
d. get a plan that made communist distribution possible
e.    get a plan that was not optimal, but one that was fair to all

6. Which of the following statements is (are) correct?
(x) The nominal exchange rate is the rate at which a person can trade the currency of one country for the currency of another country.
(y) If the nominal exchange rate is 20 Mexican pesos per U.S. dollar, it is also 0.05 U.S dollar per peso.
(z) If the nominal exchange rate is 0.75 euro per U.S. dollar, then a meal that costs 30 euros would cost 40 U.S. dollars.
A. (x), (y) and (z)
B. (x) and (y) only
C. (x) and (z) only
D. (y) and (z) only
E. (x) only

Which of the following statements is (are) correct?
(x) The real exchange rate is the rate at which domestic goods are traded for foreign goods.
(y) An appreciation of the U.S. real exchange rate induces U.S. consumers to purchase more domestic goods and fewer foreign goods.
(z) Suppose the nominal exchange rate is 10 Mexican pesos per one U.S. dollar. If a hat costs 100 pesos in Mexico and 10 dollars in Texas then the real exchange rate is specified as one Mexican hat equals one American hat.
A. (x), (y) and (z)
B. (x) and (y) only
C. (x) and (z) only
D. (y) and (z) only
E. (x) only

Which of the following could be a consequence of a depreciation of the U.S. real exchange rate?
(x) Stan, a U.S. citizen, decides that his trip to Japan would be too costly and cancels his trip.
(y) Jack, an Australian citizen, decides that buying ceiling fans from the United States will now be less costly and doubles his order.
(z) Joe, a U.S. citizen, decides to import less engine parts for his auto parts company.
A. (x), (y) and (z)
B. (x) and (y) only
C. (x) and (z) only
D. (y) and (z) only
E. (x) only

The inverse market demand curve for bean sprouts is given by P(y ) = 100−2y , and the total cost function for any firm in the industry is given by TC(y)=4y. a. If the bean-sprout industry were perfectly competitive, what would be the industry output and price? b. Suppose that two Cournot firms operate in the market, and each firm has the above total cost function. Find the reaction functions of the two firms. c. Find the Cournot equilibrium output and price. d. For the Cournot case, draw the two reaction curves and indicate the equilibrium point on the graph. e. If the two firms decide to collude, what will be the industry output and price? f. Suppose one firm acts as a Stackleberg leader and the other firm behaves as a follower. Write down the maximization problem for the leader. g. What are the levels of output of the leader and follower? What is the industry price? Compare them to the Cournot case.

1. Using optimization theory, please comment on the following quotation:

“If Congress cuts out the NASA space station, we will have wasted all the resources that we have already spent on it. Therefore, we must continue funding it.”

Question 1 Suppose we have two goods, whose quantities are denoted by A and B, each being a real number. A consumer’s consumption set consists of all (A; B) such that A ≥ 0 and B > 4.

His utility function is: U (A, B) = ln(A + 5) + ln(B - 4). The price of A is p and that of B is q; total income is I. You have to find the consumer’s demand functions and examine their properties. You need not worry about second-order conditions for now.

(i) Solve the problem by Lagrange’s method, ignoring the constraints A ≥ 0, B > 4. Show that the solutions for A and B that you obtain are valid demand functions if and only if I ≥ 5p + 4q. (ii) Suppose I ≥ 5p + 4q. Solve the utility maximization problem subject to the budget constraint and an additional constraint A ≥ 0, using Kuhn-Tucker theory (Bear in mind that the Kuhn-Tucker conditions coincide with the ordinary first-order Lagrangian conditions). Show that the solutions for A and B you get here are valid demand functions if and only if 4q < I ≤ 5p + 4q. What happens if I ≤ 4q?

In each of the following parts, consider the above cases (i) and (ii) separately.

(iii) Find the algebraic expressions for the income elasticities of demand for A; B. Which, if either, of the goods is a luxury?

(iv) Find the marginal tendencies to spend on the two goods. Which, if either, of the goods is inferior?

(v) Find the algebraic expressions for the own price derivatives ?A/?p, ?B/?q. Which, if either, of the goods is a Giffen good?