Using the LP/MP/AE model, show and explain how the Fed can reduce the level of unemployment.
Using the LP/MP/AE model, show and explain how the Fed can reduce the level of unemployment.
Using the AE model, show and explain how the Fed can reduce the level of unemployment.
What action can the Federal Reserve take to reduce unemployment? Using one of the tools available to the Federal Reserve, explain how the Fed would accomplish the action you listed. Assume the economy is currently operating at the natural rate of unemployment, what affects will the action you listed in response to have in the short run on output, price level, and interest rates? Please use the AS/AD and Money Market diagrams to illustrate your answer. Again, assume the economy is...
Migration Using the Harris-Todaro model, show how an increase in the productivity of agriculture will reduce migration. Be sure to explain what you are showing.
According to the rational expectations model, the attempt by the government to reduce unemployment below its natural rate through expansionary policies will succeed in the short run and can succeed in the long run as long as the government makes it clear what its goals are. succeed because the government knows how people will react to their policies and will adjust their policies accordingly fail because people will figure out what the government is doing and alter their expectations and...
the economy is experiencing a recession and high unemployment a. Use an AD-AS model together with the Fed Funds market to represent ther short ran equilibrium in b. What types of monetary policy (i.e.. expansionary or restrictive) should the Fed implement? c. In implementing the policy you suggest. which actions (please give at least two actions) should the Fed take to achieve this policy? Explain how t he y policy would address this problem and the consequence of the monetar...
Explain how you would use monetary policy to reduce unemployment. What is the investment multiplier and how does it work on the spending in an economy?
1. Using the monetary policy tool the Fed employs most often, the Fed closes an inflationary gap. Describe the steps the economy goes through to move to the new equilibrium output and price level. Use graphs with your answer and be sure to label everything completely. 2.Explain and show on a graph the short-run and long-run equilibrium changes in the AD/AS model from expansionary monetary policy. How does this support an anti-monetary policy stance? 3. What is the equation of...
A R D F G 8. By using solver, and given the following LP model, please answer. Make sure to provide the sensitivity analysis results: (4 points each) MAX 14X 18Y + s.t. 10X 12Y 1000 40X 1000 20X + 30Y 2000 X,Y 0 a. What is the optimal objective value of the objective function? b. What are the optimal values of the two decision variables? c. What are the ranges optimality? d. Would it be beneficial to increase the...
Q3: Aggregate Suppy and Demand (a) If oil prices increase, use the AS-AD model to show how this increase in oil prices as an adverse supply shock. How would this affect, the price level? real GDP and unemployment. (b) What is a policy response the Fed could do to help alleviate the adverse shock in part (a)? Graph how this response would work? What are the associated trade-offs of the policy given the model?
Define demand-pull inflation. Using the AS/AD model, explain how demand-pull inflation affects the level of aggregate output and the price level in the economy (which curve shifts, in what direction, and what happens to equilibrium output and price level). Give an example of macroeconomic policy that can be used to counter the effects of demand-pull inflation and discuss its effect on the equilibrium output and price level.