FOR THE CURRENT YEAR (2020): Write recommendations for government fiscal policy (specific spending and taxation changes) that you feel would be best for the Canadian economy using your understanding of the economics concepts taught in the course. Use the following guidelines as you write your recommendations: Give consideration to the impact your decisions would have on each of the economic indicators. Your discussion might consider some of the following topics: government debt and the budget surplus or deficit; the impact of these recommendations on government services; how Canadians will benefit from the recommended policies in the short term and in the long term; the multiplier effect; any potential problems with your recommendations. These are just some suggestions. Your argument should discuss several ways that your ideas will impact the economy. The recommendations you discuss could include several of these areas but you can use any relevant course concepts to justify your recommendations.

Write recommendations for government fiscal policy (specific spending and taxation changes) that you feel would be best for the Canadian economy using your understanding of the economics concepts taught in the course. Use the following guidelines as you write your recommendations: Give consideration to the impact your decisions would have on each of the economic indicators. Your discussion might consider some of the following topics: government debt and the budget surplus or deficit; the impact of these recommendations on government services; how Canadians will benefit from the recommended policies in the short term and in the long term; the multiplier effect; any potential problems with your recommendations. These are just some suggestions. Your argument should discuss several ways that your ideas will impact the economy. The recommendations you discuss could include several of these areas but you can use any relevant course concepts to justify your recommendations.

1. Describe how the multiplier works when the government decreases spending?
2. Explain how the multiplier depends on the MPC and the income tax rate. Provide intuition for your answer. What happens if MPC = 0? What happens if MPC = 1?
3. Draw the Keynesian consumption function and relate the size of the multiplier to the slope of the Keynesian consumption function.

ACTICE ANOTHER Would you favor spending more federal tax money on the arts? Of a random sample of n1 = 95 politically conservative voters, r1 = 19 responded yes. Another random sample of n2 = 78 politically moderate voters showed that r2 = 24 responded yes. Does this information indicate that the population proportion of conservative voters inclined to spend more federal tax money on funding the arts is less than the proportion of moderate voters so inclined? Use α = 0.05.

(a) What is the level of significance? 1.63 Incorrect: Your answer is incorrect.

A student used multiple regression analysis to study how family spending (y) is influenced by income (x1), family size (x2), and additions to savings (x3). The variables y, x1, and x3 are measured in thousands of dollars. The following results were obtained.

Calculate the estimated regression equation for the relationship between the variables,coefficient of determination. What can you say about the strength of this relationship,Carry out a test to determine whether y is significantly related to the independent variables and Carry out a test to see if x3 and y are significantly related.

Use a 5% level of significance.

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1. Would you favor spending more federal tax money on the arts? Of a random sample of n₁ = 90 politically conservative voters, r₁ = 20 responded yes. Another random sample of n₂ = 84 politically moderate voters showed that r₂ = 22responded yes. Does this information indicate that the population proportion of conservative voters inclined to spend more federal tax money on funding the arts is less than the proportion of moderate voters so inclined? Use α = 0.05.

(a) What is the level of significance?


State the null and alternate hypotheses.

H₀: p₁ = p₂; H₁: p₁ > p₂

H₀: p₁ = p₂; H₁: p₁ ≠ p₂    

H₀: p₁ = p₂; H₁: p₁ < p₂

H₀: p₁ < p₂; H₁: p₁ = p₂

(b) What sampling distribution will you use? What assumptions are you making?

The Student's t. The number of trials is sufficiently large.

The Student's t. We assume the population distributions are approximately normal.

    The standard normal. The number of trials is sufficiently large.

The standard normal. We assume the population distributions are approximately normal.

What is the value of the sample test statistic? (Test the difference p₁ − p₂. Do not use rounded values. Round your final answer to two decimal places.)


(c) Find (or estimate) the P-value. (Round your answer to four decimal places.)


Sketch the sampling distribution and show the area corresponding to the P-value.

(d) Based on your answers in parts (a) to (c), will you reject or fail to reject the null hypothesis? Are the data statistically significant at level α?

At the α = 0.05 level, we reject the null hypothesis and conclude the data are statistically significant.

At the α = 0.05 level, we reject the null hypothesis and conclude the data are not statistically significant.    

At the α = 0.05 level, we fail to reject the null hypothesis and conclude the data are not statistically significant.

At the α = 0.05 level, we fail to reject the null hypothesis and conclude the data are statistically significant.

(e) Interpret your conclusion in the context of the application.

Reject the null hypothesis, there is sufficient evidence that the proportion of conservative voters favoring more tax dollars for the arts is less than the proportion of moderate voters.

Fail to reject the null hypothesis, there is insufficient evidence that the proportion of conservative voters favoring more tax dollars for the arts is less than the proportion of moderate voters.     

Reject the null hypothesis, there is insufficient evidence that the proportion of conservative voters favoring more tax dollars for the arts is less than the proportion of moderate voters.

Fail to reject the null hypothesis, there is sufficient evidence that the proportion of conservative voters favoring more tax dollars for the arts is less than the proportion of moderate voters.

The action plan in the Boston Bike Network Plan anticipates spending $30 million in construction costs for work on establishing and renovating 100 miles of bike lanes in the city. The overall goal of the Boston Climate Action Plan is to reduce vehicle miles traveled (VMT) by 5.5% from 2005 levels, which would result in an estimated reduction of 68 thousand tons of CO2 per year. Assume the bike paths and VMT effects last for 30 years, the value of CO2 reduction is $40 per ton (based on another study), and the discount rate is 5%. In years 10 and 20, 10% of the original capital cost is spent for maintenance.

a. Calculate the B/C ratio, net present value, and internal rate of return for the bike path network.

7.   Answer True or False for each of the following.

Please Explain why

Government spending can raise Aggregate Demand and real GDP in the Classical model.

Classical economists said that the velocity of money is very volatile.

Classical Economists claim interest rates guarantee that savings will equal investment.

According to money neutrality, the Ms determines nominal but not real variables.

According to Say’s Law, “demand creates its own supply”.

Classical economists said that markets are highly competitive.

In the Classical model monetary policy is cannot change AD.

Classical Economists claim wages and prices adjust rapidly to new conditions.

Classical influence starts to wane during the 1960s.

Laissez-faire means the government can do anything it wants to the economy.

If a small open economy reduces defense spending, what happens to saving, investment, the trade balance, the world interest rate, and the exchange rate? Assume that initially saving exceeds investment. I want to see two sets of graphs illustrating the effects, Make sure you explain what is going on!

The US economy is getting stronger through spending on new shovel ready construction projects. The proposed plan is to build out infrastructure and put people back to work. No matter what your political affiliations are, you have to like the news if you are in the field of construction. 50% of all the worlds construction will be in China over the next 5 years. The need for infrastructure, clean water, housing, affordable and renewable energy is clear.

.What burgeoning industries and construction sectors are worth investing in and developing educational emphasis on with the intent to populate those sectors with our own talent?

There is an opening market for talented EU graduates who can put this idea in motion. Can some of our fellow EU classmates find leads on work in these new industries? Can this industry evolution and progression present new opportunities for the prepared professional?