If the government wants to increase the amount of savings in the economy, how should it alter government spending? What effect will this action have on the interest rate in the economy? (Use the appropriate graph and model to illustrate the effect). Explain thoroughly.

The corona crisis and fiscal policy:

Some believe that the state should face the crisis with increased spending over the state budget. Is this a good idea before the anti-infection measures are lifted? Justify the answer with the AS-AD model.

Visit the Fed's Summary of Commentary on Current Economic Conditions, also known as the Beige Book. Prepare a proposal recommending monetary policy actions designed to correct problems with spending, employment, and prices. Defend your choices.

1. Use an AD-AS model to depict the following scenarios in the short-run:
   1. The government cuts taxes
   2. There is a reduction in government spending
   3. The government increases transfer payments

Which of the above three scenarios above would be fiscal policy?

a. What do empirical findings suggest regarding the short run and medium run effects of technological change on employment/unemployment?

b. Explain the two factors that determine spending on Research and Development, as discussed in your textbook?

Explain the crypto-economy concept of blockchain? Explain how cryptographic hash function is applied to protect the integrity of blockchain transactions and to detect double-spending attack. State the property of the hash function that is relevant for each application.

• Distinguish between the real-balances effect and the wealth effect. How does each relate to the aggregate demand curve?
• What assumptions makes the immediate short-run supply curve horizontal? Why is the long-run supply curve vertical?
• Explain how an upward sloping aggregate supply curve weakens the realized multiplier effect from an initial change in investment spending.
• Why does a reduction in aggregate demand in the real economy reduce output rather than prices?
• In early 2001 investment spending sharply declined in the United States. In the two months following the September 11, 2001 attacks on the United States consumption also declined. Use AD-AS analysis to show the two impacts on real GDP.

From 90 of its restaurants, Noodles & Company managers collected data on per-person sales and the percent of sales due to "potstickers" (a popular food item). Both numerical variables failed tests for normality, so they tried a chi-square test. Each variable was converted into ordinal categories (low, medium, high) using cutoff points that produced roughly equal group sizes. At α = .05, is per-person spending independent of percent of sales from potstickers?

Per spending: Low Med High Row Total

Low 9 10    8 27

Med 7    13    9    29

High 9 8 17    34

Col Total    25    31 34 90

From 90 of its restaurants, Noodles & Company managers collected data on per-person sales and the percent of sales due to "potstickers" (a popular food item). Both numerical variables failed tests for normality, so they tried a chi-square test. Each variable was converted into ordinal categories (low, medium, high) using cutoff points that produced roughly equal group sizes. At α = .05, is per-person spending independent of percent of sales from potstickers?

Per spending: Low Med High Row Total

Low 9 10    8 27

Med 7    13    9    29

High 9 8 17    34

Col Total    25    31 34 90