eping the balance of payments in equlibrium :  State why governments / decision makers try to achieve the TWO macroeconomic objectives  Identify key problems which may be encounter

The economy of a hypothetical country has been stable for two or three years with very low unemployment. Wages have been gradually increasing during this time. Now an aggressive policy of increasing tariffs on foreign goods imported into the country results retaliatory actions from the other countries against the country’s products and services. This causes great loss of business in the country and results in significant portion of workers losing their jobs. 1. What kind of economic gap will start to occur (inflationary or recessionary)? 2. What part of the Federal Reserve’s congressional mandate does this scenario trigger (price stability and maximum sustainable employment)? 3. What kind of monetary policy might be helpful to stabilize the economy (expansionary or contractionary)? 4. What specific monetary policy tools does the Federal Reserve have available to use in this scenario? 5. Explain in detail, how should the Federal Reserve use each of these tools to maximize their effect…

Define economics and discuss the evolving global economic crisis? Give type answer

Distinguish between the following concepts as they apply to Elements of Macroeconomics. Give examples to support your answers a. Monetary Policy and Fiscal Policy b. Fixed Exchange Rate and Floating Exchange Rate

When is it inappropriate to use monetary and fiscal policy to stimulate or stabilize the economy? please also give a reference on this one too.

Identify the components of change in the contemporary global economy

For this question, treat the countries listed in each row as the home country, and treat the United States as the foreign country. Suppose the cost of the market basket in the United States is PUS = $190. Check to see whether PPP holds for each of the countries listed and determine whether we should expect a real appreciate or real depreciation for each country (relative to the United States) in the long run.   You can fill out your answers in the table directly but please show how you worked out the problem for Brazil using the space below the table. Round your answers to 2 decimal places if necessary.     Country (currency measured in FX units) Per $ (EFX/$) Price of Market Basket (in FX) Price of U.S. Basket in FX          (PUSx EFX/$) Real Exchange Rate qcountry/US Does PPP Hold? (yes or no) Is FX Currency Overvalued or Undervalued? Is FX Currency Expected to Have Real Appreciation or Depreciation? Brazil (real) 4.07 520           India…

Which of the following best describes the Washington Consensus? It describes a bipartisan legislative agreement in the U.S. Congress. It describes monetary policy adopted by the U.S. president. It describes a protectionist economic policy used by the IMF. It describes economic policy that supports government deficit spending. None of these accurately describes the Washington Consensus.

What kind of macroeconomic policy should India follow?

Which of the following statements is true? Select one: a.Wealthy countries tend to score highest on the "least corrupt" scale. b.Poor countries are likely to remain poor because when one country's economy grows, it is at the expense of some other country's economy. c.Poor countries are poor because they lack resources. d.The pursuit of economic growth harms children by encouraging child labour industries and discouraging school attendance.   In general, countries which are less corrupt by most international measures Select one: a.experience higher long term growth rates. b.have higher short term growth rates but are no different in the long run. c.have growth rates similar to more corrupt countries. d.are poorer than countries with higher levels of corruption.   As GDP per person rises Select one: a.the number of children per family tends to fall. b.environmental quality falls and continues to fall. c.the incidence of child labour rises. d.the economy shifts towards more labour…