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Chapter 8 Assignment 2-22-2018

1. Solve the following problem:

Suppose GDP is $9 trillion, taxes are $1.5 trillion, private saving is $0.5 trillion, and public saving is $0.2 trillion. Assuming this economy is closed (GDP=C+I+G), calculate consumption, government purchases, national savings, and investment. [Hint: See pages 165-166 in your textbook.]

Show your work so that we can explain what went wrong if you miss any aspect of this.

2. Mankiw explains the role the federal government budgetary outcome (surplus or deficit) in determining the long run rate of Investment spending and thus economic growth. Let's take a look at the actual data for the period 1997 to the present to see what has actually happened. For this data, see:

https://www.gpo.gov/fdsys/pkg/ECONI-2018-01/pdf/ECONI-2018-01-Pg32.pdf

Once at this site, 1) select 2018; 2) then select “January”; 3) then select “Federal Finance”; and then select the pdf version of “Federal Receipts, Outlays, and Debt.”

You should now be on page 32 where the table and graph "Federal Receipts, Outlays, and Debt" are shown. [The graphs at the top of this referenced site show the broad trends (from 2009) rather well. Please note that time in this data is shown in federal fiscal years, and the federal fiscal year begins on October 1 and ends on September 30th. We are now in FY 2018.]

Looking at this data, comment on:

2A. Between FY 1999 and the present, in which fiscal years (if any) has the federal government run a budget surplus? In which fiscal years has it run a budget deficit? [Use the “Total” columns on the left-hand side of the page to answer this question. Note that the “Total” budget surplus or deficit is the combined result of the “On-Budget” and the “Off-Budget” results for each period.]

2B. What is the current situation for the total federal budget? If the budget outcome has changed recently, explain briefly why this change has occurred.

2C. If you were asked to predict the total federal budget outcome for next four years (FY 2018- FY 2021), what would you predict? Explain. [Might the presence of a new Administration in Washington (for example, the President’s commitment to a wall on our southern border with Mexico, a promised increase in military spending, a large tax reduction, and a $1.0 trillion increase in transportation infrastructure) make a difference in your projection of the overall budget outcome? Might the current state of the U.S. economy have a significant impact on the budgetary outcome?]

[For items # 2B and # 2C, you might find it useful (and interesting) to look also at the next table (page 33) titled "Federal Receipts and Outlays by Function." Here is the link to page 33:

https://www.gpo.gov/fdsys/pkg/ECONI-2018-01/pdf/ECONI-2018-01-Pg33.pdf

[Note: Economic Indicators is a monthly publication of the President's Council of Economic Advisors. There are roughly 40 pages of detailed tables in each issue of "Economic Indicators" including three separate tables on federal government finance. If you need to find current macroeconomic data, this is usually a good place to start looking.]

Answer:2A. Between FY 1999 and the present, in which fiscal years (if any) has...
Answer:First, the public debt at the end of fiscal year 2008 is $1450 billion ...

The government intervenes in the economy in the following three ways:

a. Fiscal intervention: The fiscal intervention in the economy involves changing government spending or expenditure and also changing the rate of taxes in the economy. Government follows expansionary monetary policy involving increasing government expenditure and reducing taxes during the time of recession and government follows contractionary fiscal policy involving reducing expenditure and increasing taxes during the time of inflation.

b. Monetary intervention: This involves change in the money supply by the Central Bank of the country. Money supply is increased or expansionary monetary policy leading to fall in the rate of interest is followed during the time of recession and money supply is reduced or contractionary monetary policy leading to rise in the rate of interest is followed during the time of inflation.

c. Supply Side efforts- When government increases investment in technological advancement, human capital formation, research and development, reduce taxes on production, then the government is making supply side efforts to increase the level of production taking place in the economy.

Looking at the criticism of government involvement from the Classical perspective, the supply side efforts from the government is the best policy. This is because both fiscal and monetary intervention involves demand side changes in the economy , however, Classical believed in supply side economics and always suggested measured to increase aggregate supply in the economy. Thus, supply side efforts makes most sense from Classical perspective.

I am curious as to what you mean when you say that supply-side efforts make the most sense from the classical perspective. It is my understanding that classical economists denounce mercantilism and government involvement, including supply-side efforts. Adam Smith, in a way, discusses the negative effects of supply-side economics--or the trickle-down effect--when he writes about the impoverishment of the working class sheep shearers and weavers.?

Answer:Yes, you are correct. Classical economists were against government inte...
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Hello alizy you said you do essay I have 4 essays must be your own word not copied off of google all the directions i was given I wrote down below thanks you

The fourth one is (derived units : density)

Density, like volume, is a derived unit. It is a physical property of matter that is defined as the amount of mass per unit volume. For solids, the common unit is grams per cubic centimeter (g/cm°). For gases and liquids, the common unit is grams per milliliter (g/mL).

The relationship between density, mass, and volume is very important.

Knowing how to quickly solve for any of them will be very helpful throughout this course. Write the formula for density below or on a separate sheet of paper, and then solve for mass and volume.

1. Density =

2. Mass =

3. Volume =

Memorize the density formula and learn to derive the other two, or, if preferred, memorize all three of these formulas.

Water and octanol are immiscible. This means that if you add them together, they will not mix, blend, or form a solution. Thus, when you pour them both in a beaker, you will see two separate layers. If you pour octanol

(density = 0.824 g/mL) and water (density = 1.00 g/mL) into the same

beaker, which layer will be on the bottom? Why?

Can vou think of another liguid that is immiscible with water? If poured into the same beaker, which layer do you think would be on the bottom? Please explain.

Let's say that you are performing an experiment with two clear, immiscible liquids in one graduated cylinder, but you do not know which layer is which.

If you know that one layer is water, how could you determine which layer is water and which is the other liquid without looking up their densities?

Answer: Here is a list of common density values for various substances. Note: ...
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1. Purchased 3,700 shares of Microsoft at $68.30 per share plus a $655 commission.

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