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Identify at least three policies taken by the Federal Reserve Bank (FED) has taken to stabilize financial markets since mid-March. Explain why these policies considered, extraordinary, unprecedented, and massive? What is the goal of these policies? Analyze the impact of the FED's "expansionary" monetary policy on U.S. business investment, household consumption, private savings, economic growth rate, unemployment rate, and the inflation rate, in the context of our basic macroeconomic model? Explain your reasoning carefully and show your result in well-labeled aggregate demand - aggregate supply diagram.

3. (15 pt.) In the article below, "Biden's Plan to Spend $4.5 Trillion Without Boosting Deficits."

1) Identify two expansionary fiscal policies that Biden has included in this proposal. Include supporting spending numbers for the programs you identify. Assuming that the marginal propensity to consume is 0.6 calculate the magnitude of the fiscal spending multiplier? On an annual basis calculate the total impact (including multiplier effects) each policy will have on GDP.

2) In this proposal how does Biden plan to keep this revenue-neutral and not increase budget deficits? If the marginal propensity to consume is 0.6 what is the fiscal tax multiplier? If additional tax revenue does in fact offset the proposed increase in government spending will the overall Biden proposal result in increased GDP? Explain your reasoning carefully.

3) Who gains and who loses if this proposal were adopted? Based on your analysis would you vote in favor of this proposal if you were a legislator in Congress? Explain your reasoning carefully.

4. (15 pt.) President Biden's $1.9 trillion Covid-19 relief package was financed entirely with borrowed money ...Discuss three of the major provisions of this legislation. Analyze how this fiscal policy that Congress has enacted affects U.S. economic growth, unemployment, Federal budget deficits, and inflation in the context of our basic macroeconomic model. Explain your reasoning carefully. Assume initially that actual output is ten percent below potential output and show both the short-run and long-run adjustment in well-labeled aggregate demand - aggregate supply graph.

5. (15 pt.) How large was the U.S. federal budget deficit in the first half of the 2020 fiscal year? Based on recent forecasts how large is the deficit projected to grow by the end of fiscal 2021 on September 30. Explain how the U S. Federal government is able to finance this deficit? Discuss at least three problems that are caused by deficits of this magnitude. Check out the US Debt Clock real-time projections How large is the budget deficit? What is meant by the term public debt? What is the current US public debt?

6. (10 pt.) What is meant by the term inflation? How is inflation measured in the U. S. economy? What is the Federal Reserve Bank's (FED) target for inflation? What was the percentage increase in the consumer price index (CPI) between March 2020 and March 2021? If the FED continues to print $120 bills per month (buying Treasury and mortgage-backed securities) over the next two years will this cause a spike in inflation? If the increased personal income resulting from the Covid stimulus is spent in 2021 will this result in a spike in inflation? What does the FED plan on doing to keep inflation under control? Explain your reasoning carefully.

D Question 22 1 pts Mike has a linear production possibilities frontier that shows maximum production of trucks or computers of 10 million each. Debra also has a linear production possibilities curve that shows maximum production of 9 million trucks or 3 million computers. Click to view larger image. Based on the graphs, which of the following statements is true? Mike has a comparative advantage in the production of computers. Debra has an absolute advantage in the production of trucks. Debra has an absolute advantage in the production of computers. Debra has an absolute advantage in the production of computers. * Previous Next MacBook Pro 2 3 Q W E R Y 4 S D F G H Z X C V B N1 Flag question Improving the level of education of the labor force will: Select one: O a. make the production possibilities curve lincar. O b. shift the production possibilities curve inward. O C. move the economy from a point on the production possibilities curve to a point inside the production possibilities curve. O d. shift the production possibilities curve outward, O e. move the economy from a point inside the production possibilities curve to a point on the production possibilities curve.Question 13 If an efficient country trades with the rest of the world, it consumes at a point that lies a. on a consumption possibilities curve that is flatter than its production possibilities curve. b. on a consumption possibilities curve that is steeper than its production possibilities curve. on a consumption possibilities curve that is either steeper or flatter than its production possibilities curve. d. on its production possibilities curve.O a. An avoidable cost F Flag question O b. An incremental cost O c. A sunk cost O d. An opportunity cost Question 97 Which of the following is not a qualitative factor to be considered in a make-or-buy decision? Not yet answered Select one: Points out of 1.00 a. Possible lost jobs from buying outside Flag question O b. Supplier's ability to satisfy quality standards O C. Incremental benefit from buying outside O d. Supplier's ability to meet production schedule Question 98 Which of the following is not a true statement? Not yet answered Select one: Points out of 1.00 O a. Incremental analysis might also be referred to as differential analysis. P Flag question b. Incremental analysis is the same as CVP analysis. c. Incremental analysis is useful in making decisions. d. Incremental analysis focuses on decisions that involve a choice among alternative couWhich of the following is likely to have an inelastic demand? O Suits sold by Banana Republic, a famous apparel brand. O Cheerios, a brand of breakfast cereal. O Honda CR-V, a family friendly SUV. O Insulin, an essential drug for diabetics. QUESTION 11 In the context of consumer choice theory, utility means: O electricity, water, and gas. O satisfaction. O usefulness. opportunity cost. QUESTION 12 The marginal utilities associated with the first 5 units of consumption of good Y are 10, 9, 8. 7, and 3. respectively. What is the total utility associated with those 3 units? O 27. 0 34