Economics Midterm Research Paper Assignment

Economics Midterm Research Paper Assignment

Instructions/Descriptions

Economics Midterm Research Paper Assignment

[Order Now]

Each answer should be 2-3 pages including graphics, definitions, analysis, etc.

For all questions, include context, graphical illustrations and calculations to support your  answers.
When answering, think as a CFO / Manager.
1. Required: Identify the relationship of prices, value of money, and monetary equilibrium? What happens to the value of money, price level, interest rates, GDP and currency with continued monetary injections? What can we learn from history regarding economies, which experienced hyperinflation and deflation as it relates to the execution of prudent monetary policy? Quantity Theory of Money, Money Demand & Money Supply Determinants ***See attached graph***

2. As a Manager….define the “costs” of inflation / deflation on consumers, firms, society, allocation of resources, redistribution of wealth (debtor versus creditor) and tax behavior distortions (capital gains, interest income). Comment on the following statements…”Inflation is bad, but deflation may be worse)”…and…”inflation is always and everywhere a monetary phenomenon”.
3. What are the monetary policy considerations, which the Federal Reserve is pursuing in the current COVID / Post environment? What are their objectives? Focus your analysis on the various tools of the “FED”, i.e. open market operations, interest on excess reserves, interest rates, employment and inflation. Does consideration of fiscal policy come into “play” when pursuing prudent monetary policy strategy? Why?
4. Required: Identify the effect of inflation / deflation on interest rates (short / long term), and on each of the components of GDP, namely C, I, G and NX (i.e. net exports including domestic currency valuation). The Aggregate Model of the Macro Economy
5. What is the relationship between Net Exports (X-M) and Net Capital Flows. Explain how and why they are related? If the FED commenced printing large quantities of U.S. dollars, what could happen to the number of Japanese yen a dollar ($) could by? How would that impact a nation’s currency value and exports? Export versus Import Spending.
6. Required: Describe the FED’s tools of monetary control and how it can either direct / indirectly influence money supply and the monetary base?  How does the FED’s tools and commercial banking oversight direct monetary policy, interest rates, liquidity and overall aggregate demand (GDP).
7. What factors Influence the spending behavior of the different sectors of the economy? How do behavior changes in these sectors influence the level of output and income in the overall economy? Can policy makers (“FED”, Congress) maintain stable prices, full employment and sustainable, adequate economic growth over time?
8. What are the various measures of labor unemployment and underutilization  (U1 – U6). Explain the various observed employment / unemployment trends on demographic groups, unemployment rate and labor force participation. If you were an advisor to the POTUS (President of US), what recommendations would you suggest to improve the employment picture for all demographic groups, labor force participation and GDP?
9. What is money? How do we define money in our monetary system?  What are the functions of money?  What is meant by fiat money versus it’s intrinsic value? Why is the study of money flows from person to person important? How does the concept of liquidity play a role in our monetary structure? What are the FED’s various tools in conducting monetary policy? What ultimately determines capital flows throughout the world? Why is financial capital important in economic growth? What is more mobile, labor or capital? In your analysis explain the difference between nominal versus real rates of return?
10. Required: Explain the market (supply and demand) for loanable funds and the role interest rate plays. Provide examples of tax policy changes which increase incentives augmenting savings and investment. Provide commentary and graphical analysis documenting interest rate / loanable fund changes.  Refer to Gross Private Domestic Investment Expenditure and Investment Spending Function

>Expand your analysis to include government budget deficits and surpluses to the supply / demand of loanable funds and describe the “Crowding Out” effect on private investment spending on GDP?
11. What is meant by National Savings? Private Savings? Public Savings? Budget Surplus and Deficit? How do these impact GDP when determining monetary and fiscal policy strategies in tandem?

12. What is a Production Function? Describe the components of this functional relationship. Highlight the different scale /rates of economic growth discussed. What is meant by “Production Technology and Input Substitution”; “Production and Cost Analysis in the Long Run”,  “Isoquant Analysis”,

Economics Midterm Research Paper Assignment

>Can the rate of savings, population / demographics, education and research / development – technological knowledge further influence the GDP of society?

13. What is meant by the GDP / aggregate expenditure (“AE”)? What are the components of “AE” and how does it measure total expenditure and income of a society. What is the difference between nominal versus real GDP when assessing growth? Why is this metric important in measuring?  ***See attached graph***
14. Why is it important in measuring price changes in our economy? Compare and contrast the GDP deflator to PCE, CPI / PPI?
15. Define real versus nominal Interest rates and their impact on capital flows, investment, savings & spending?  As a manager, why should you be cognizant of trends in interest rates?
16. What is meant by monetary, fiscal and trade policy and how can it influence market demand and market supply?  What are the long run implications of an expansionary monetary and fiscal policies on the economy if left unchecked?
17. Compare and contrast behaviors, which led to the Great Depression (1930’s) and the current Pandemic (COVID) worldwide recession?  What was similar and what was different? What did the Federal government and Federal Reserve do in the 1930’s which prolonged the duration of the Great Depression.  Alternatively, what is the U.S. Federal government and the Federal Reserve Bank doing today to which mitigate the effects of the pandemic?Apply also general economic research.
    Associated with #18, what can we learn from studying economic history?
18. The great 18^th– century Classical economist Adam Smith wrote, “Little else is requisite to carry a state to the highest degree of opulence from the lowest barbarism but peace, easy taxes and a tolerable administration of justice: all the rest being brought about by the natural course of things”.

>Explain how each of the conditions Smith describes would promote economic growth for all. In your answer, reference the salient “Principles of Economics” in driving sustainable economic growth and prosperity. ***See attached 15 Econ Principles***

20. As of today, provide a summary of the current and future state of the U.S. and world wide economy, including fiscal, monetary & trade policy? How has the post- pandemic impacted economic growth, commerce, markets and confidence?  Discuss the post effects as it relates to impacts associated with aggregate demand & aggregate supply?
21. Explain the Aggregate Macro Model as it relates to Aggregate Demand & Aggregate Supply? Why as a manager should be aware of these models and their respective determinants? ***See attached graph***
22. Required: What are various leading, coincident and lagging economic indicators which Managers should be aware of when assessing micro and macro trends and their impacts to their business, firm and overall industry? ***See attached graph***

Economics Midterm Research Paper Assignment

PLACE THE ORDER WITH US TODAY AND GET A PERFECT SCORE!!!