Completed quickly and followed instructions given. Grammar, spelling, etc. was all good as well. Thank you so much! Will hire in the future.
Please answer all questions and provide explanation
For this question you will continue to use the above model, reproduced here :”- = 5 + 0.01 – 10171 ,`Money demand[^ = 30 + 0. 518 – 71 – 2010 *^Desired consumption*$` = 401 – 20101 * *Desired investmentN` = 31 – 0.18 – 5 0Desired net exportsYou can assume that I” = 150 is the long – run Equilibrium level of output , that is ,*$”and that the initial price level [ P] is 1. 5 .* ] Suppose that the government decides to PEE the nominal exchange Le_ Jat DEOwhich is below its equilibrium value . Calculate the short – run as well as the long -run effects on output and the price level . Determine as well what would happento the real exchange rate in the short run and then the long run compared withthe value you found in Question 2 , part 2 ) .b) As economists in the Department of Finance , You advise the government that inthe long run , the policy of pegging the exchange rate will not have a lasting effecton `. That said , because it is below it’s equilibrium value , the short- run increasein demand does provide an opportunity to lower the fiscal deficit while keepingthe economy at full employment .1 ) USE in turn a cut in Gand then an increase in I to keep the economy at fullEmployment ( that is , cut G holding I constant , and then separately raise !”holding G constant , in each case by Enough to offset the expansionaryEffect of the devaluation ] .”2 ) Which policy results in the most improvement in the budget deficit ?Describe ( no calculations required ; the effects of each policy oncomponents OF ! “.3] Do the policies have different effects on the composition of demand (E.B .Consumption , investment and net exports ] ?”[ ] Start again with the conditions as they were in part & ] . Assume that the economyexperiences an increase in potential From }” = 150 to $” = 153. Use the model toFind the long – run effect of this change on the real exchange rate (E), net exportsI’MA] and consumption . As well , Find the new level of the nominal moneysupply needed to maintain long – run Equilibrium . Did the nominal money supplyrise or fall ?” What has happened to the real money supply ?
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more