revenues and expendures affected by...

2. Describe how federal government revenues and expenditures are affected by changes in output, unemployment, inflation, and interest rates. Also, explain how the federal budget deficit is affected by an increase in economic activity and real domestic income. (20 marks) Question also in attachment

What is the difference between economic depression and inflation?

What is the difference between economic depression and inflation? Describe the nature of an appropriate fiscal and monetary policy in each of these situations. Question also in attachment

Cutting spending and unemployment and three potential output scenarios

4. The federal government wants to cool down the overheated economy by cutting its spending. Describe how this policy may affect the unemployment rate. (5 marks) Next, consider the following three scenarios, and use appropriate diagrams to show the likely effects of an activist policy in both the short and long run. (15 marks ...continues

Equilibrium income, price level, interest rate,short-run eq,expansionary monetary policy

text book for reference - www.mcgrawhill.ca/college/colander Chapters 16, 17, 18 5. Energy costs are up in Canada and the rest of the world. Economic analysts see continued upward pressure on energy prices as the UN pushes for implementation of the Kyoto Accord on greenhouse gas emissions. With the aid of diagrams, answer th ...continues

Multiple choice/ short answer questions : multiplier model, recession, automatic stabilizers, budget deficit, money, reserve ratio, currency to deposit ratio, Monetary policy, stimulate aggregate demand, expansionary monetary policy, AS/AD model, Countercyclical monetary policy, nominal interest rates, real interest rates, recessionary gap, autonomous expenditures, Crowding out, Automatic stabilizer, Money multiplier, Open market operations, Budget deficit, money supply, tight (restrictive) monetary policy.

1. According to the multiplier model, the best way to reduce inflation is to a. increase aggregate demand by cutting government spending or raising taxes. b. increase aggregate demand by raising government spending or cutting taxes. c. decrease aggregate demand by cutting government spending or raising taxes. d. decrease agg ...continues

Multi choice problems for checking

see attachment for details and answer choices. 1. An increase in real income in Canada should: 2. McCain Foods (Canada) buys $50 million of Japanese securities. This transaction causes the Canadian: 3. Other things equal, a reduction in Canadian interest rates relative to foreign interest rates should: 4. If the governmen ...continues

GDP - Use the data below to calculate the values for GDP (expenditure approach), GDP (income approach), net domestic income (NDI), personal income (P1), and personal disposable income (PDI).

1. Use the data below to calculate the values for GDP (expenditure approach), GDP (income approach), net domestic income (NDI), personal income (P1), and personal disposable income (PDI). (All values are in billions of dollars.) Indicate the components you use in calculating each of your answers. For example, to calculate net ex ...continues

Canadian Economy and Equilibrium Price

Text Reference - www.mcgrawhill.ca/college/colander 3. The United States is proposing a significant increase in duty on Canadian softwood lumber. Use appropriate diagrams to answer the following questions about the Canadian economy. (20 marks) (a) How would higher duty on softwood lumber affect the equilibrium income and the ...continues

Supply and Demand

I need to know what The United States of America is in demand for. For example,specific fruits oil etc, also and how does this affect our economy, how does inflation tie into this and who determinds the prices for these items?? Thanks, Rudy

Optimization Problem (Profit Maximizing Production)

The Stock Corporation makes two products, paper and cardboard. The relationship between p, the firm's annual profit (in thousands of dollars) and its output of each good is {see attachment}, where Q1 is the firm's annual output of paper (in tons) and Q2 is the firm's annual output of cardboard (in tons). a) Find the profit m ...continues