Question 3. Answer 4 parts, out of 8 parts in this question. if you answermorethan 4 parts, the first 4 parts will be considered for marking. (40 marks)
a) Consider a scenario where the Bank of England forecasts the UKeconomywill be overheating and is attempting to slow the economy downusingmonetary policy to increase the interest rate. What wouldbe the impact onthe pound sterling? (10 marks)
b) Why does the unemployment rate not shrink continuously in a worldwithcontinuous technological progress.? (10 marks)
c) Draw the indifference curve for the Central bank’s monetary policymakerif the economy is full of young people and the central bank is inflationaverse. (10 marks)
d) Considering an investment equation, � = � 0 − � 1� , Whatparameter has more impact on investment � or � 0 ? (10marks)
e) Give an example of circumstances under which households distinguishbetween base and bank money. (10 marks)
f) In a financial crisis, would it be preferable for the government tostabilisethe economy using fiscal or monetary policy? (10 marks)
g) A policy that has been advocated to increase employment is asubsidypaidto firms in proportion to the workers’ wages. Suppose that hiringaworkerfor an hour would cost the firm £40 in wages, butit would receivea10%subsidy of that amount from the government,or £4. So, the net wagecost tothe firm would now be £36. How wouldthis affect the price-settingcurve?(10 marks)
Each sub question for about 200 words, totaling of 800+ words total. It is macro economic questions. Need to have concepts of economics.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more
Recent Comments