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Calculating Saving Rate of a Country using Harrod Domar Equation Macroeconomics Microeconomics

Stimulus package passed by the US Government in 2009

  Question: 1. Was the stimulus package passed in 2009 as success?  In answering this question the focus should be the articles on the syllabus, but you should also include opinions of other commentators.   Your answer should also describe why coming to a clear conclusion on thi ... Read More

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Long-term Federal government budget problems and misleading forecast by CBO

  Question: Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading. Include in your answer why solutions to the problem will necessarily involve a decision about which citizens will bear the burden of trying to balance t ... Read More

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Economic crisis situation in Europe

  Question: Describe the present economic crisis situation in Europe.Why has it been so difficult for the Europeans to find a solution to this problem? Comment on what implications the crisis may have for the rest of the world if Europeans are not able to agree on a solution. Summary: T ... Read More

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Hubbard’s argument about the Federal Reserve controlling Federal funds rates

Question: Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?   Summary:The question whether the Federal Rese ... Read More

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Hubbard’s adaptive expectations and rational expectations

  Question: Compare and contrast ‘adaptive expectations’ (Hubbard uses adaptive expectations) and ‘rational expectations’ in modeling expectations.   Summary: Hubbard’s ‘adaptive expectations’ in modeling expectations are discussed in ... Read More

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Taylor’s Rule as guideline for monetary policy

  Question: In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?   Summary :The pros and cons of forecasted values of inflation using Taylor’s ... Read More

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Difficulty of the Federal Reserve to adopt inflation targeting

  Question: Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment?   Summary: Inflation targeting and the difficulty for the Federal Reserve in adopting infl ... Read More

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Similar Economic Crisis for Japan and US

  Question: What can we learn from the Japanese experience? Is the US headed for a ‘lost decade?   Summary:The similarities in the recent meltdown of economies in both the US and Japan suggest a similar fat to the US, which has already been seen by the Japanese. But, unlike t ... Read More

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Failure of “Super Committee” good for the US economy

  Question: Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?   Summary: The failure of “Super Committee” and the consequences have been discussed in the answer.    Wor ... Read More

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Free riders and Pareto’s Efficiency Level for Public goods in perfect markets

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good. Summary: This question is about what are free riders and how can they affect a perfectly competitive market. Free riders are those who do not p ... Read More

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Devaluation of the Dollar

Summary: The article discusses about the causes and impact of devaluation of the dollar in American and the global economy. The report specifically determines the advantages and disadvantages of dollar devaluation and its impact on the import and export oriented transactions. Also the study point ... Read More

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