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Intermediate Macroeconomics

  1. Below, I have written an economic situation. For each, please state how the condition alters the
    IS, LM, AD, SRAS and LRAS curves discussed in class. Assume you are comparing the conditions
    below to the standard model described in class and in chapters 10, 11 and 13 of Mankiw. Not all changes
    impact all curves so be careful. Appropriate (but not an exhaustive list of) answers may include: steeper,
    shallower, vertical, horizontal, shifted right, shifted left, movement along a curve, and any others that may
    pertain. (4 ea.)
    a. Investment spending is a positive function of national income.
    b. Taxes are a positive function of income rather than a lump sum amount.
    c. Income has no impact on money demand.
    d. The price level rises.
    e. Expectations of future prices increase.
  2. a. Imagine that the economy was at the long run steady state level of growth and in economic
    equilibrium prior to a dramatic decrease in the money supply. Assume further that firm owners cannot
    immediately differentiate between changes in real and nominal profits. Further assume that population is
    growing at 2% per year and technology is growing at 1% per year. On the graphs below, plot the shortrun and long-run effects of the increase in money supply. Label the order of the changes by placing the
    number 1 next to the first change, the number 2 by the second, etc. (20)
    b. On the plots below, diagram the impact of the increase in money supply. Use a solid line to do this!
    Be sure to include the time period immediately before the increase and the time immediately after the
    economy reached the final steady state. The dashed lines indicate where the previous period ended and
    the next one begins. (15)
    Long Run
    c. Money supply changes are usually surprise events; Federal Reserve officials rarely pre-announce their
    decisions to alter the quantity of money. However, imagine that the increase in money supply was
    announced well in advance. On the plot of part b, using a dotted line, plot the impact of the increase in
    money supply on the requested variables. (15)
    d. For this part of the question, forget the details of part c. Instead, many economists have argued that
    periods of low unemployment have long-term impacts on the economy. For instance, during a period of
    low unemployment, more people are working and hence, more people are learning job-related skills.
    Even after unemployment returns to its long-run level, these people have skills that can increase their
    productivity. Assume this theory is correct. On the plot of part b, using a dashed line, demonstrate the
    increase in money supply. (15)
  3. Use the circular flow of income to answer the following question. Assume a consumption
    function of the form, C = a + b(Y – T). If the marginal propensity to consume is .9 and the government
    increases taxes by $200, (4 ea.)
    a. Explain (precisely) what happens to the following variables:
    Public Saving.
    Private Saving.
    National Saving.
    b. How do your answers to the above three variables change if the LM curve has a positive slope? (8)
    c. How do your answers to the above three variables change if the LM and SRAS curves both have
    positive slopes? (8)
    a. Given a per capita production function of y = k.5, a savings rate of 10%, a depreciation rate of 2%, a
    technological growth rate of 1%, and population growth of 3%, what is this economy’s steady state level
    of output per capita. In a sentence, describe over time what is happening to this economy’s level of
    RGDP when the economy is in the steady state. (15)
    b. Imagine that the economy described in part a of this problem begins time (t0) with 1 unit of capital per
    effective worker. Assume that investment demand rises at the same rate as real GDP. Further, assume
    that by time t1 this economy has achieved the steady state level of capital. On the left-hand side of the
    plots below, diagram the movement of the requested variables between time t0 and time t1. (12)
    c. At time t1, this economy raises the savings level to s’ where s’>10%. On the plot above, diagram the
    of the variables as the economy evolves through time. (12)
    t0 t1

Sample Solution

Why People Should Not Be Allowed to Keep Exotic Animals as Pets GuidesorSubmit my paper for examination polar bear petWild nature is home for countless species, a significant number of which are intriguing as well as near termination. All through late decades, mankind has put forth a strong attempt so as to forestall the elimination of these creatures, secure the territory of these species, and some way or another limit the negative results of the nearness of people. In any case, there is another issue that has not been given enough consideration to—this issue is keeping fascinating creatures as pets. In spite of the fact that proprietors of extraordinary creatures may accept they are not doing anything terrible, in actuality such a training ought to be denied because of various reasons. Basically nobody, aside from maybe the most extravagant individuals, can give a wild creature all its fundamental conditions. Outlandish creatures have one of a kind needs. For instance, wild tigers need a huge region to wander around in. A venomous Monocled cobra, which can be lawfully purchased in various states for a diminutive $100, will over and again strike when feeling in harm's way. A wildcat can chase a prey multiple times greater than itself. Chimpanzees and different primates require a great deal of room for climbing, and ocean well evolved creatures need tremendous water bowls to swim uninhibitedly. The models are various. These necessities require explicit living conditions—or if nothing else lodging structures. Will a normal American resident bear the cost of keeping an extraordinary pet? For a year or two, yet for 25 or 50 years? Only for a model, the yearly expense of keeping a tiger (in a confine) approaches $6,000. Plainly, being a manager of a wild creature is past the abilities of a normal resident (National Geographic). Your paper is practically all set? Let a specialist have a last perused your paper before giving it in. The Sure Way to Getting a Higher Grade. SEE YOUR GRADE BEFORE Turning in YOUR PAPER. FREE EXPERT HELP In the event that the past passage didn't convince you, think about the threat of organic pollution. As indicated by various assessments, at any rate one of every three reptiles (which are among the most well known fascinating pets—iguanas, for instance) is a host for salmonella and shigella microbes; the general rate with salmonella is likely up to 90 percent. As per information gave by the U.S. Fish and Wildlife Service, 90 percent of imported green iguanas convey new strains of intestinal microscopic organisms. Different species are not more secure. Around 25 percent of both imported and locally reared macaques are accounted for to have had the herpes B infection. Among different sicknesses conveyed and shipped by wild creatures, one should specify such diseases as chlamydia, yaba infection, giardia, tuberculosis, measles, marburg infection, hepatitis A, campylobacteriosis, rabies, streptothricosis, and a ton of different malevolent microorganisms, including worms (ASPCA). What's more, wild creatures can represent a direct physical risk to their proprietors. During the most recent 10 years, there have been many assaults submitted by hostage huge felines, for example, lions and tigers; in perhaps the saddest occurrence, a tiger slaughtered a three-year-old kid, who was its gatekeeper's grandson. For another situation, a Bengal tiger has gnawed off an arm of a four-year-old kid. Since the start of the century, four individuals were pursued down (and slaughtered) by wolf crossovers. This isn't to make reference to the situations when wild creatures assaulted other tamed pets—felines, hounds, etc (PETA). Alongside notable natural issues, for example, the annihilation of species, or the obliteration of rainforests, there is additionally another critical issue: individuals will in general keep outlandish wild creatures as pets. This is a terrible practice, since wild creatures require novel conditions that a normal American can't bear; fascinating creatures convey and transmit colorful infections, which can represent a risk to proprietors; and there were various episodes when a spellbound wild creature assaulted its proprietor, or individuals from their families. This is strong verification for the case that wild fascinating creatures ought not be kept as pets. References "Wild at Home: Exotic Animals as Pets." Nat Geo WILD. N.p., 03 Oct. 2012. Web. 11 Aug. 2015. "Fascinating Animals as Pets." ASPCA. N.p., n.d. Web. 11 Aug. 2015. "Intriguing Animals as 'Pets'" PETA. N.p., n.d.

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