Economics Homework 03 |

1- ) The National Bureau of Economic Research maintains a Web page devoted to business cycle expansions and contractions at to an external site.. Please take a look at this page to see if you can determine how the business cycle has been changing in recent decades. Has the overall length of cycles been changing? Have recessions been getting longer or shorter?

2- ) Please review the Summary of Commentary on Current Economic Conditions by Federal Reserve District (Beige Book), available through the Federal Reserve System at to an external site. Summarize the national economic conditions for the most recent period covered in the report. Overall, is the economy healthy? If not, what problems is it experiencing? 

3- ) (Economic Fluctuations) Describe the various components of fluctuations in economy activity over time. Because economic activity fluctuates, how is long-term growth possible?

4- ) (Aggregate Demand and Supply) Determine whether each of the following would cause a shift of the aggregate demand curve, a shift of the aggregate supply curve, neither, or both.  Which curve shifts, and in which direction? What happens to aggregate output and the price level in each case?

a. The price level changes

b. Consumer confidence declines

c. The supply of resources increases

d. The wage rate increases

5- ) One supply-side measure introduced by the Reagan administration was a cut in income tax rates. Use an aggregate demand/aggregate supply diagram to show what effect was intended. What might happen if such a tax cut also shifted the aggregate demand curve?

6- ) How are economic fluctuations linked among national economies?  Could a recession in the United States trigger a recession abroad? 7-) What is the relationship between demand-side economics and the federal budget deficit? Briefly explain.8-) Why does an aggregate demand curve slope downward? Briefly explain.9-) Is it possible for the price level fall (deflation) while production and employment both rise? (Hint: Use AD-AS Model)10-) Why do economists pay attention total employment, price level and growth? Briefly discuss.

Chapter 6 questions:

11. How does the income approach to measuring GDP differ from the expenditure approach? Explain the meaning of value added and its importance in the income approach. Consider the following data for the selling price at each stage in the production of a five-pound bag of flour sold by your local grocer. Calculate the final market value of the flour.

 Stage of Production    Sale Price 

Farmer:            $0.30Miller:              $0.50Wholesaler:     $1.00Grocer:            $1.50

12. Given the following annual information about a hypothetical country, answer questions a and b:

Personal consumption expenditures:   $200

Personal taxes: 50

Exports: 30

Government purchases: 50

Gross private domestic investment: 40

Imports: 40

Government transfer payments: 20

a.      What is the value of GDP?b.      What is the value of net exports? 

13. What are the leakages from and injections into the circular flow? How are leakages and injections related in the circular flow?

14. One often-heard criticism of the U.S. national income accounts is that they ignore the effect of environmental pollution. The World Bank’s group on Environmental Economics and Indicators has been investigating ways of assessing environmental degradation. Pleasetake a look at the World Bank’s work on “green accounting” at,,contentMDK:20487830~menuPK:1187769~pagePK:148956~piPK:216618~theSitePK:408050,00.htmlLinks to an external site. Briefly discuss what kinds of problems the World Bank has identified, and what proposals it has made to deal with those problems?15. Identify the component of aggregate expenditure to which each of the following belongs:a. A US resident’s purchase a new car manufactured in Japan.b. Construction of a new housec. A city government’s acquisition of 10 new police carsd. An increase in semiconductor inventories over last year’s level16. Suppose US economy is in a deep recession. How does this recession affect the US major trading partners such as Canada, China, Japan, etc? Briefly discuss.

Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

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.

Money-back guarantee

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

Zero-plagiarism guarantee

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

Free-revision policy

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

Privacy policy

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

Fair-cooperation guarantee

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

Order your essay today and save 10% with the coupon code: best10