Briefly describe the primary determinants of aggregate investment. Defend the relationship that exists between reductions in the real interest rate and the overall level of investment. Discuss two factors that lead to the observed historical volatility in investment spending. Explain a possible scenario in which aggregate investment spending decreases despite there being a decline in the economy’s real interest rate.

Discuss the fundamental differences between the Classical and Keynesian schools of macroeconomics. Use these differences to motivate a discussion of how inflationary and recessionary gaps can be eliminated through the use of discretionary fiscal policy. Use a graphical analysis and conclude by considering the long-run ramifications of adopting a fiscal budget that is sensitive to movements in the business cycle.

How do write a proposed funding for non-profit. Are there any examples?

Explain the difference between inclusive and extractive economic institutions. What are the political and economic outcomes associated with each type of institution? What are the sources of economic institutions?

What Advice would you give to the  New CEO for Wells Fargo to fix the previous fraudulant charges?

Explain the meaning of the term rent seeking and illustrate graphically how it could undermine efficiency in the economy

What is the relationship between economic equality and democracy? How does the democratic process affect the level of equality in a given society? What are the political impacts of high inequality?

In this case study you investigate how good the official ‘unemployment rate’ captures the unemployment in the economy.

You should reference the two articles provided on this subject above, the material in your textbook related to this topic and one more article of your choosing. Address the following questions in your paper:

1. Does the official unemployment rate capture the true unemployment in the economy?

2. What are the ways to address any flaws in the report?

3. Compare the unemployment rates for the latest results (after the corona virus pandemic) with last year's percentage

4. Provide a graph showing the unemployment for the last ten (10) years

(Hint: The X-axis should represent the years and the Y-axis the percentage rate of unemployment. You can attach a MS Word or Excel for the graph.)

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Recently, the owner of a Trader Joe’s franchise decided to change how she compensated her top manager. Last year, she paid him a fixed salary of $60,000 and her store made $135,000 in profits (not counting payment to her top manager). She suspected the store could do much better and feared the fixed salary was causing her top manager to shirk on the job. Therefore, this year she decided to offer him a fixed salary of $30,000 plus 18% of the store’s profits. Since the change, the store is performing much better, and she forecasts profits this year to be $275,000 (again, not counting the payment to her top manager).

Assuming the change in compensation is the reason for the increased profits, and that the forecast is accurate, how much more money will the owner make (net of payment to her top manager) because of this change?

$

Does the manager make more money under the new payment scheme?

(Click to select)  Yes  No

Question 5 [10]A large share of the growing expenditure in South Africa goes towards the remuneration of employees (the so-called wage bill). Explain how unbalanced productivity growth (According to Baumol’s unbalanced productivity growth model) affects government expenditure, and briefly comment on its relevance to South Africa.

Subject: Government economics 20A

do you think that the US government has done enough to try and stimulate aggregate demand?