For complete question please see attached document as I could not type the equation on here
The Taylor Principle says that monetary policy ought to respond more than proportionately to
increases in inflation. The New-Keynesian model describes an economy where expectations of
the future influence the current state. Consider the following simplified 3-equation model plus
the Fisher equation:
Amongst many issues, Covid-19 brought about a reduction in consumption of a number of goods
and services (restaurants, movie theaters, airlines, tourism,…). In fact, a remarkable feature of
Covid-19 was the significant increase in personal savings in the US economy (and several other
economies around the world). The spike in the personal savings rate is dominated by the large
government transfers to households through the CARES and subsequent programs, though the
increase in savings goes beyond those transfers as can be seen in the graph labeled 1 in the attachment named graphs.
Another feature of Covid is the remarkable movement in labor force participation, as described
in the graph 2 – see attached
A final feature of Covid has been the remarkable increase in New Business Applications and
reduction in the number of bankruptcies that, typically, have led to increases in business
creation. In the past, new entrants have led to faster productivity gains. see graph 3
a) Use the consumption/savings model in the attached slide document called models to explain this consumer behavior.
Make sure to include in your comments a mention to the evolution of real disposable personal income, precautionary savings and hand-to-mouth households. You may construct graphs
b) Using the labor market models in the attached slide document called models , analyze the consequences on labor supply
and demand that might have operated during Covid and its legacy going forward. You may construct graphs
Click here to watch the video and answer the questions below.
What is the gold standard?
What was the value of the dollar worth before WWI?
How does a gold standard work? That is, how did an individual do its banking under the
gold standard?
Why did the US leave the gold standard?
The US gradually left the gold standard. List the two major times in history when this
happened.
What are the advantages AND disadvantages of being on a gold standard?
In your opinion, should the U.S. go back to a gold standard? Explain. Minimum 5
sentences.
Click here to watch the video and answer the questions below.
What is the double incidence of want problem?
What is the retention of value problem?
How did the invention of money eliminate these two problems?
What’s the problem with printing more money?
Where does money get its value from?
If you can do it, you can type, the others that you cannot just handwrite it s okay for some calculations
I have attached the detailed. I will provide a great tip for who will do it. And I will be work with you all the time. JUst for now bid at this low budget will give big rating and tip.
If you can do it, you can type, the others that you cannot just handwrite it s okay for some calculations
I have attached the detailed. I will provide a great tip for who will do it. And I will be work with you all the time. JUst for now bid at this low budget will give big rating and tip.
