US corn production is used primarily to feed cattle and hogs to produce meat for human consumption and to produce biofuels. Suppose the demand for corn as livestock feed is given by: Qfeed=24.5-4P ,where quantities are in billions of bushels and the price, P, is in dollars. The US government mandates that a fixed percentage of US gasoline be blended with ethanol-based biofuel.

Assume this mandate fixes the total quantity of corn used for domestic fuel production at 10.5 m. bushels per year. Assume the U.S. supply of corn is given as Qs=3P

Suppose the government decides to eliminate the biofuels mandate. The demand for corn by ethanol producers is given as, Qfuel=12-10P (in the absence of any mandate).
(c) Derive the producer surplus in the US corn market with and without the mandate. Are producers better or worse off under the biofuels mandate?
(d) In your opinion, is the biofuels mandate a regressive or progressive policy? Explain your answer.

What kind of forward and backward linkages would each of the following publicly funded program might have? Comment on the number, strength, and intrinsic profitability of the linkages. Do you recommend that this initiative should be funded by the government or should it be left to the private sector?

a. Construction of a big hospital in a rural area where is no such hospital for 200 miles.

b. Creation of a large public park that from purchasing private agricultural property from private landowners.

c. Discovery and development of large deposits of natural gas

What is meant by a direct signal and an indirect signal. Below is the answer I provided. Can you confirm if this answer should be changed to an indirect signal. And if yes, can you provide an example for an direct signal?  

A direct signal is a macro indicator that signals directly what is being measured, An example of a direct signal is if a bank closes $8,300,000 loans in February and $8,500,00 loans in March. In February the average 30 year fixed rate for a mortgage was 3.64%. In March, the average fixed rate was 3.38%. This decrease can be contributed to the decrease in the Fed Funds rate by The Federal Reserve Bank. In February the rate was 1.58% and in March the rate was .65%. The fed funds rate is the interest rate that banks use to borrower from each other for short term loans. As a result, this is affects the mortgage interest rates charged by banks.

Suppose that the treasurer of IBM has chance to borrow of $10,000,000 (or its equivalent in other currency) and to invest for three months. Monthly interest rate in the USA - 1.3% per month, in Germany - 0.6% per month, in London - 0.9% per month. The treasurer of IBM does not wish to bear any exchange risk.

Current spot exchange rate: 0.8045 €/$ and 1.8095 $/£

Three-month forward exchange rate: 0.8098 €/$ and 1.8028 $/£

a. Determine whether the interest rate parity (IRP) is currently holding.

b. If the IRP is not holding, how would you carry out covered interest arbitrage? Show all the steps and determine the arbitrage profit.

c. Explain how the IRP will be restored as a result of covered arbitrage activities.

Fiscal policy: If the concern is increasing GDP, why wouldn't a government want to pursue the policy of just increasing spending indefinitely to avoid ever having decreases in GDP?

Consider the effect on interest rates and investment, also consider the worthiness of pursing increased GDP as a singular goal.

1. Assume that the US was at full employment prior to the coronavirus pandemic. Illustrate graphically, using the Aggregate Supply/Aggregate Demand (AS/AD) framework, the full employment equilibrium price level and GDP. Label the price level P0 and the full employment GDP as Q0 in your diagram. You will need three curves: an aggregate demand curve, a short-run aggregate supply curve, and a long-run aggregate supply curve.

2. Given your answer to part (1), illustrate in the same diagram what effect the coronavirus pandemic is likely to have on the economy, given the article you read. Identify the new equilibrium price and GDP level and label them P1 and Q1 respectively.

3. Explain the rationale behind your answer in part 2.

4. What types of fiscal policy responses would make sense at this time, given your answers to parts (2) and (3)? How would they affect the diagram you have drawn?

please draw/show your work. and ill give you thumbs up

Macroeconomic variables are indicators or main signposts signalling the current trends in the economy”, keeping in view this statement what is your understanding of the below key variables of Macro-Economy.                                                                                                       

• Unemployment rates
• Inflation
• Budget deficit

Discuss the various types of frictions and distortions in labor and product markets that make the adjustments of wages and prices slow, according to New Keynesian macroeconomists.

In the New Keynesian Macroeconomics business cycles are driven by demand shocks, while in the New Classical Macroeconomics they are driven by supply shocks. Explain this statement using your knowledge of the AD-AS model.

You should be able to answer each of the following questions in a just a few sentences. Graphs or figures might be good to include if they help you to make a better argument or to explain your answer more clearly.

3. Grandma promises to sneak you some bourbon while your parents are cleaning up the Thanksgiving dishes, but only if you can impress her with something you learned in your economics class. Carefully explain to Grandma why the short run average total cost curve is U-shaped so that the two of you can sip a little Maker’s together.

4. In order to improve your chances of matching with someone, you decide to update your online dating profile. Specifically, you decide that to impress potential partners you will show off what you know about monopolies and marginal revenue. Draft out an explanation as to what marginal revenue is for the monopolist so that you can have them all wanting to swipe right!

In the New Keynesian Macroeconomics business cycles are driven by demand shocks, while in the New Classical Macroeconomics they are driven by supply shocks. Explain this statement using your knowledge of the AD-AS model.