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Subject:
Fiscal Policy
Category: Business and Money > Economics Asked by: fireman7986-ga List Price: $50.00 |
Posted:
20 Dec 2005 22:01 PST
Expires: 01 Jan 2006 07:39 PST Question ID: 608322 |
Fiscal Policy Should Mr. Tsvangiral's government balance the budget --by cutting government expenditures and improving tax collection -- or should his government pursue an expansionary fiscal policy--by cutting taxes and/or increasing government spending? Explain your reasoning. HOw will the fiscal policy that you recommend affect equilibrium aggregate output in the short run? Explain your answer in words and use a diagram to illustrate your answer. HOw will the fiscal policy that you recommend affect planned investment in the short run? Explain your answer in words and use a diagram to illustrate your answer. Using the model of economic fluctuations dicussed in class, explain how the fiscal policy that you recommend will effect consumption in the short run. Explain your answer in words and use the Keynesian Consumption Function --expressed in terms of disposable income to support your answer. How will the fiscal policy that you recommend affect Zimbabwe's steady state level of output per worker? Explain your answer in words and use a diagram to illustrate your answer. Using the Solow Model, explain how the fiscal policy that you recommend will affect consumption per worker over time. Explain your answer in words and use diagrams illustrate your answer. Monetary Policy Should Zimbabwe's central bank accommodate the current budget deficit -- by buying government bonds or should it contract the money supply? Explain your reasoning. How will the monetary policy that you recommend affect equilibrium aggregate output in the short run? Explain your answer in words and use a diagram to illustrate your answer. How will the monetary policy that you recommend affect planned investment in the short run? Explain your answer in words and use a diagram to illustrate your answer. How will the monetary policy that you recommend affect the inflation rate? Explain your answer in words and use a diagram to illustrate your answer. |
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