In the aftermath of the global COVID-19 crisis, Canadian
Government rans unprecedented budget deficits, yet interest...
In the aftermath of the global COVID-19 crisis, Canadian
Government rans unprecedented budget deficits, yet interest rates
in Canada fell sharply, and stayed low for quite some time.
In the aftermath of the global COVID-19 crisis, Canadian
Government rans unprecedented budget deficits, yet interest rates
in Canada fell sharply, and stayed low for quite some time.
4. Does this make sense? Explain why, or why
not.
4. a) Amid the unprecedented crisis of Covid-19, Government has
announced a number of stimulus packages totaling over Tk.1 lakh
crore to stand by the poor and helpless people. How would you
evaluate its impact on the economy? Explain with the help of
aggregate demand and aggregate supply model.
b) What is inflation? People commonly feel inflation is bad. Do you
feel the same? Clarify your stand with necessary arguments.
The COVID-19 crisis has led to unprecedented shock to the state
of the macroeconomy. Use the IS-LM curves as well as the AD-AS
curves to show how the economy will correct itself if prices are
sticky or sluggish. Compare this to how the economy will correct
itself when we assume prices are flexible or adjust easily over the
course of a year. In one or more paragraphs explain what should
happen when the economy corrects itself under each scenario. Also,...
The Global Financial Crisis 1. What is the aftermath of a
banking crisis on the housing market? Equity prices? 2. What is the
aftermath of a banking crisis on unemployment? GDP? Debt?
The COVID-19 crisis has led to unprecedented fiscal measures.
Use the IS-LM curves as well as the AD-AS curves to show the
impacts of Congress and President Trump’s stimulus relief actions.
Be sure to label all axes and curves. In one or more paragraphs
explain what should happen when we assume the MPC is 0.8 and both
spending and tax measures are taken to heal the economy. What part
does a democrat majority congress and a republican president play
in...
1. The COVID-19 crisis has led to unprecedented fiscal measures.
Use the IS-LM curves as well as the AD-AS curves to show the
impacts of Congress and President Trump’s stimulus relief actions.
Be sure to label all axes and curves. In one or more paragraphs
explain what should happen when we assume the MPC is 0.8 and both
spending and tax measures are taken to heal the economy. Also,
discuss the impact on all variables and economic agents. Be sure...
Question 1: At the start of the COVID-19 pandemic, the Canadian
(and global) economy suffered quickly from a decline in the volume
of trade to China. For example, Air Canada quickly discontinued all
direct flights to China following the federal government's advice
to avoid non-essential travel.
Using the aggregate supply and demand model (OA-DA), rigorously
describe the impact of the shock described above on the initial
equilibrium of the Canadian economy.
Firm dynamics in the COVID-19 crisis. Analyze the impact of the
COVID-19 crisis from a firm dynamics perspective. Assume that the
productivity of all firms is the product of an economy wide
parameter z times an idiosyncratic firm-level productivity that
varies by firm and over time as an AR(1) process. What does the
basic model predict regarding entry, exit, employment, wages? How
does the policy of loans converted to grants to keep employment at
the firm level affect the equilibrium?