In the IS/LM model explain what happens to equilibrium output and interest rate if government simultaneously pursues expansionary fiscal policy and the central bank opts for a contradictionary monetary policy. Show with the help of a graph along with a very brief verbal explanation.

This is a true statement about monetary and fiscal policy: The Medicare program is fiscal policy and the fed funds rate is monetary policy. Both are run by the Federal Reserve. Unemployment insurance is fiscal policy and defense spending is monetary policy. Monetary policy targets income inequality while fiscal policy targets inflation.   This is an example of the government sponsoring “uneconomic” economic activity:     The National Park Service       Corporate income taxes       Banking regulation     Making trade agreements with other countries

Q1. In this module we learned about severalreal-world complications that make monetary and fiscal policy more challenging than simple theory would suggest. Given the state of the Canadian economy and the causes of that state-think back to earlier discussions about the current economy-what should be the appropriate mix of fiscal and monetary policy, from a Keynesian perspective? From a neoclassical perspective? Which makes the most sense to you? Provide evidence (include and least one link/citation) to provide support to your conclusion.

Show on a graph of the AS-AD model of the economy how different fiscal and monetary policies impact on the economy

subquestions a and b. * for a) - need to find the IS equation, also the LM equation and the equilibrium.

(a) Using a basic Keynesian income determination model, describe the effects of the following changes, assuming that money demand is infinitely elastic: (i) an increase in government expenditure (ii) an increase in the marginal propensity to save (iii) a decrease in export demand (iv) an increase in the marginal propensity to import (v) a cut in the official rate of interest by the Monetary Policy Committee of the Bank of England Illustrate your answers with diagrams.

Start with a brief introduction that explains use of Government policy to control the economy. When is it appropriate to use monetary and fiscal policy to stimulate or stabilize the economy? Look at both. When is it inappropriate to use monetary and fiscal policy to stimulate or stabilize the economy? Look at both. What specific fiscal policy tools would you use to stimulate aggregate demand and how? What specific monetary policy tools would you use to stimulate aggregate demand and how? What is your conclusion, should policymakers use the monetary and or fiscal policy, or a combination of both, to stimulate aggregate demand? Explain your reasoning.

Fiscal and Monetary Policies are different in that a)Only fiscal policy tools  may include taxation and stimulus checks for a country residents b)Only monetary policy tools may include targeting the Fed Funds rate c)Only Congress is authorized to approve spending associated with fiscal policy d)All of the above

Explain the circular-flow model of the economy in terms of resource and monetary flows. Discuss the role of injections and withdrawals within this model. What are the limitations of this model of the economy?

How did the lauch of Apple's ipad effect the competitive market environment? High prices and high profits in a competitive generally lead to new suppliers entering the market, prices sliding down the market demand curve, the market supply curve shifting to the right, and significant product and technological innovation.