a. What would be the effect of such a policy on equilibrium interest rate in the money market? Explain why the equilibrium interest rate changes the way it does. Provide a graphical illustration using the appropriate diagram(s). (10 points)b. Discuss the effects of the policy on equilibrium output and interest rate in the economy using the ISLM-ADAS model in the short run. Explain which market (or markets) is (or are) affected and which curves shift. Illustrate your answer with the appropriate diagrams. (10 points). c. Now discuss the effects in the medium run. You do not need to draw new diagrams; but you should refer to the diagrams in part b above and state which curves shift and in which direction they shift, and what happens to output and the interest rate in the medium-run equilibrium. A branch of the economics profession has argued that money is “neutral”. Does your analysis support this claim? Explain. (10 points) Question II.3 (30 points) 2 a. Describe the factors that influence wage setting. Write down the equation that represents wage setting, describe the effect of each factor in the equation/function, and draw the corresponding diagram. Clearly state the assumptions behind your analysis. (10 points) b. Briefly describe the “efficiency wage” theory. Explain why a firm would want to pay a wage that is higher than the market wage rate. What theories can motivate such a practice? (10 points) c. The conventional (classical) labor market theory suggests that i) the wage rate adjusts smoothly so that labor supply equals labor demand; ii) wages are set competitively across markets; iii) there is no ‘involuntary’ unemployment (anyone who wishes to work can work). Does this reflect the reality in real economies? If not, explain why. (10 points)
by Classy Writers | Jun 9, 2020 | Business & Finance /Economics
a. What would be the effect of such a policy on equilibrium interest rate in the money…
A professional Academic Services Provider
Superb Writers Classic Essays Prioritizes Quality, Accountability, Professionalism, and Timely Delivery
At Superb Writers, we have qualified experts including writers providing quality papers at all times. The company seeks to aid learners all through the education process while easing their journey. Customer satisfaction is our emblem, and as the name suggests, our customers have a SUPERB experience with us. We purpose to help learners comprehend their classwork and homework to attain high grades. Our writers, editors, managers, customer service personnel are friendly; hence, providing a conducive environment to interact with you; the client. We offer guidance across various tasks including essay wring, article writing, thesis proposals, dissertations, coursework, and project management among others.Our Core Values
1. Professionalism: Our staff are highly trained to accommodate every personality. We handle our clients respectfully, understanding the fact that we are here because of you.
2. High-Quality: As typified by our name, we provide quality services as desired by our clients.
3. Confidentiality We safeguard what we share with our clients; hence, information shared remains confidential.
Assurances
4. Quality Assurance: Our qualified writers are clustered as per their expertise and tasks matched with the respective fields. Moreover, we have the current software to check paper quality; thus, delivering error free products.
5. Money Back Policy: As a client-oriented service, we offer 100% refund for the following: if we received a double payment from you; if you placed similar orders twice (or more) and paid for all of them; the writer has not been assigned; you asked to cancel the order within 20 minutes after placing it; an e-Check payment has been sent (the Dispute Manager will contact you accordingly). Other cases involve a comprehensive investigation by the Dispute Department and feedback given within 24 hours. We value our customers; therefore, the process will be fair, fast, and precise.
5 .Free Revisions: You can request for revisions at no additional cost. However, this does not entail complete change of the initial order instructions and if it is not past ten days upon your approval.
6. 24/7 Customer Support: Our support team is always available to help when needed.
Process of Placing an Order
NOTE: If you have any question, always contact our support team before the commencement of your project. ALL THE BEST”:
Recent Comments