What is the proposed Budget deficit for 2018? Why is the deficit currently so large and should the government be more focused on a balanced budget?

i)    As a Keynesian economist, defend the use of this deficit spending to help the economy. Use the AD/AS model in your answer.

ii)    As a Classical economist explain using the “crowding out” theory why you are opposed to this deficit spending. Use graphical support in your answer.

Suppose that the MPC in a country is 0.7.

Complete the following table by calculating the change in GDP predicted by the multiplier process given each fiscal policy change listed.

A marketing study found that the mean spending in 15 categories of consumer items for 150 respondents in the 18 to 34 age group was RM75.50 with a standard deviation of RM53.20. For 250 respondents in the 35+ age group, the mean and the standard deviation were RM65.20 and RM46.10, respectively. Test the hypothesis that there is no difference in the mean spending between these two populations. Use a significance level of 0.05. (Note: Assume that the population variances are not equal)

1.Suppose that the federal government has a budget deficit and the economy is closed. Using the savings–investment spending identity, explain how this affects investment spending.

2.The market for loanable funds is in equilibrium. All else equal, the federal government has eliminated taxes on interest earned from savings. Describe how this will affect the market for loanable funds, the equilibrium interest rate, and the equilibrium quantity of loanable funds.

Data:

Mass of Magnesium ribbon per meter (g/m) : 0.076g/m Length of magnesium ribbon (cm):3.8 Room temp: 24.0 C Water temp before the reaction: 16.5 C Water temperature after the reaction:18.0 C Atmostpheric or barometric pressure (cmHg): 73.4cmHg Water Vapor pressure at the average temp (mmHg): 15.878 mmHg Volume of gas collected (mL): 89.2mL

1. Mass of Mg ribbon reacted ? 2.Moles of Mg ribbon reacted? 3.Theoretical moles of hydrogen gas produced (based on the limiting reactant)? 4.Atmospheric pressure in mmHg? Partial pressure of hydrogen gas in mmHg (use dalton's law of partial pressure) 6.Partial pressure of hydrogen gas in atmospheres 7.Estimated temp of the hydrogen gas in C (average temp of all three collected temp) 8. Estimated temp of the hydrogen ga in K (average temp of all three collected temp) 9. Experimental (actual) moles of hydrogen gas produced (use the ideal gas law. This value should be similar to your answer in # 3, assuming that all of the magnesium ribbon reacted) 10.Ratio of the moles of the Mg ribbon to the experimental moles of hydrogen gas produced 11. Volume that the sample of hydrogen gas would occupy at STP (use the combined gas law) 12. Molar volume of hydrogen gas at STP (use the volume from #11 and the moles of hydrogen gas from #9) 13. Using the theoretical value of the molar volume as 22.4 L/mol, calculate the percent error

1. Develop the least squares estimated regression equation.  (to 3 decimals)

2. Suppose Wells Fargo Investments developed new software to increase their speed of execution rating. If the new software is able to increase their speed of execution rating from the current value of 2.2 to the average speed of execution rating for the other 10 brokerage firms that were surveyed, what value would you predict for the overall satisfaction rating?

   (to 3 decimals)

Suppose that the MPC is 0.75 and that this economy has lump sum taxes.

1. What is the spending multiplier?

2. What is the tax multiplier?

3. What will happen to GDP if taxes increase by 1,200?

4. What would to GDP if spending decreases by 1,200?

5. What decreases in taxes would have the same effect on the economy as the increase in G in (d)?

6. Suppose that both income and taxes increase by 2,000. What is the balanced budget multiplier? Prove that your answer is correct.

7. Briefly explain why, in the real world, spending and tax multipliers are likely to be smaller than what you calculated in the previous question ( even if the MPC is the same). Assume for simplicity that the economy is Not in deep recession.   

Identify Answers and Show all work when appropriate.

1. The "real" interest rate is the yield to maturity:

A plus the inflation rate

B minus the inflation rate

C plus the discount rate

D minus the discount rate

2. If the real Gross Domestic Product of the G-20 countries is growing at a faster rate than real Gross Domestic Product growth in the United States, then the value of the U.S. dollar can be expected to:

A appreciate

B depreciate

C fluctuate

D stagnate

3. An increasing Consumer Confidence Index indicates that:

A consumers are confident in the overall economy and future spending is likely to increase

B consumers are not confident in the current overall economy but future spending is likely to fall

C consumers are likely to curtail spending on credit

D consumers plan on saving more money

The economy has been officially out of the worst recession since the Great Depression for 10 years. In August, personal consumption expenditure increased by .1% which is a smaller increase than in the previous months where the personal consumption expenditures increased by .5% per month. How does the change in aggregate expenditures in August affect the aggregate expenditures, GDP, and employment? How does that compare to the changes in consumption in the previous months? Investment spending in August fell by .2%. How does this change in investment spending affect the aggregate expenditures, GDP, and employment? Do you feel the change in consumption, or the change in investment spending is more accurate in predicting how GDP might change in the future? Are you concerned about these changes? Why or why not?

10 sentences

, search the Internet for an additional article on healthcare spending trends. Write a paper of 400-500 words in which you:

1. Identify three reasons why healthcare spending is expected to rise in the next ten years. (5 pts)

2. Describe three strategies (don’t forget wellness strategies!) a manager could use to decrease health care costs and explain how each would decrease health care costs. (12 pts)

3. Identify one change you can make in your lifestyle that could help reduce your health care costs either now or in the future (3 pts)

You must find at least one source that contains information on spending trends, and another either on the same subject or on strategies for reducing costs. Provide your 2 sources at the end of your paper.