You are the chair of the Malaysian Economic Council. There has been an extremely hot weather due to a climate change. As a result, crop production has fallen drastically. The Prime Minister’s office calls you to discuss the impact on the economy. Would you explain to the Prime Minister that a sharp drop in Malaysia’s crop production would cause inflation, unemployment or both? Discuss.
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You are the chair of the Malaysian Economic Council. There has been an extremely hot weather due to a climate change. As a result, crop production has fallen drastically. The Prime Minister’s office calls you to discuss the impact on the economy. Would you explain to the Prime Minister that a sharp drop in Malaysia’s crop production would cause inflation,
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- You are the chair of the president’s Council of Economic Advisers. There has been an extremely hot and dry summer due to climate change. As a result, crop production has fallen drastically. The president calls you to the White House to discuss the impact on the economy. Would you explain to the president that a sharp drop in U.S. crop production would cause inflation, unemployment, or both?The government decides that it will cut taxes in an attempt to move the economy out of a severe recessionExplain how a severe drought in a country whose main activity is agriculture can affect: The gross domestic product of that country The unemployment rate The price index of agricultural products
- The economy of a hypothetical country has been stable for two or three years with very low unemployment. Wages have been gradually increasing during this time. Now stock market prices begin significant increases, causing peoples’ investments, such as their retirement accounts and other investments to increase in value. People feel very good about the future, that they will keep their jobs, get regular pay raises and life will be good. With this positive feeling, people feel better about making purchases that perhaps they had been delaying earlier. They now use their new-found sense of wealth to buy many things that they had been hesitant to purchase in the past. Given this scenario, insert your answers below each of the following questions. What kind of economic gap will start to occur (inflationary or recessionary)? Which of these graphs, Figure 1 or Figure 2, depicts this economic gap? What part of the Federal Reserve’s congressional mandate does this scenario trigger (price…The economy of a hypothetical country has been stable for two or three years with very low unemployment. Wages have been gradually increasing during this time. Now stock market prices begin significant increases, causing peoples’ investments, such as their retirement accounts and other investments to increase in value. People feel very good about the future, that they will keep their jobs, get regular pay raises and life will be good. With this positive feeling, people feel better about making purchases that perhaps they had been delaying earlier. They now use their new-found sense of wealth to buy many things that they had been hesitant to purchase in the past. Given this scenario, insert your answers below each of the following questions. What kind of economic gap will start to occur (inflationary or recessionary)? Will the demand shift to the right or left? What part of the Federal Reserve’s congressional mandate does this scenario trigger (price stability and maximum sustainable…The economy of a hypothetical country has been stable for two or three years with very low unemployment. Wages have been gradually increasing during this time. Now stock market prices begin significant increases, causing peoples’ investments, such as their retirement accounts and other investments to increase in value. People feel very good about the future, that they will keep their jobs, get regular pay raises and life will be good. With this positive feeling, people feel better about making purchases that perhaps they had been delaying earlier. They now use their new-found sense of wealth to buy many things that they had been hesitant to purchase in the past. Given this scenario, insert your answers below each of the following questions What kind of monetary policy might be helpful to stabilize the economy (expansionary or contractionary)What specific monetary policy tools does the Federal Reserve have available to use in this scenario? What specific monetary policy tools does…
- The economy of a hypothetical country has been stable for two or three years with very low unemployment. Wages have been gradually increasing during this time. Now stock market prices begin significant increases, causing peoples’ investments, such as their retirement accounts and other investments to increase in value. People feel very good about the future, that they will keep their jobs, get regular pay raises and life will be good. With this positive feeling, people feel better about making purchases that perhaps they had been delaying earlier. They now use their new-found sense of wealth to buy many things that they had been hesitant to purchase in the past. What kind of economic gap will start to occur (inflationary or recessionary)? What part of the Federal Reserve’s congressional mandate does this scenario trigger (price stability and maximum sustainable employment)? What kind of monetary policy might be helpful to stabilize the economy (expansionary or contractionary)? What…Inflation rocketed to record levels throughout 2022, as the war in Ukraine pushed up the price of everyday necessities, including food, energy, and fuel. At the same time, wages have failed to keep pace with the change in everyday costs. War in Europe, political instability, increasing energy bills and cost of living have been an overarching story of the UK economy. In November 2022, the Consumer Price Index (CPI) showed prices were an average of 10.7% higher than they were in the same month a year previously. This figure showed the rate of price rises had slowed, as the CPI for October 2022 was 11.1% - the highest level for 41 years. (a) Discuss what monetary policy the Bank of England may use to control the rising inflation? (200 words max) (b) What are the problems/issues that the economy may face if the Bank of England uses conventional monetary policies to curb inflation? (100 words max)Myanmar experienced a 60 percent currency dropped within four weeks as the economy tanks since early of this year. This is due to the country facing a military coup since February 2021, which has led to political instability and the second wave of coronavirus infections in the country. The World Bank predicted the economy would slump 18 percent, which lead to the employment contraction and an increase in the number of poor. As an economist, analyze the fiscal and monetary policy tools that can be implemented to overcome the recession in Myanmar.
- Recent data from the Bureau of Labor Statistics show that the average price level for consumers rose 5.4% over the past year. While some are expressing concern over rising inflation leading the economy to “overheat,” there is some evidence indicating that this is due to the reopening of the economy as producers adjust to rising demand for goods and services. Many of the goods with the largest price increases, like bacon or cars and trucks, cannot have their production ramped up as quickly as demand is increasing. Other industries are facing supply chain challenges, like shortages of truck drivers. These problems are most likely to be short term, so, as supply catches up with demand, we can expect to see prices return to normal. As evidence, after spiking to record highs in early summer, lumber prices have now fallen below their price at the start of the year. The reason for the dramatic price increase earlier in the year was a combination of reduced supply in 2019 and a surge in demand…The Chief Executive Officer of Dar Al Herfya (World of Handicrafts) spends her days contacting potential clients and setting up meetings in which she explains the salient features of the hand-made products she sells and their role in sustaining the rural economy in Oman. Her hectic schedule has not diminished her enthusiasm a bit. “This has been my routine for the last three years. You have to work hard if you have a mission,” says Zuwaina of her pet project. In 2012, Zuwaina relinquished her top corporate job, and all the perks that went with it, to launch her own company with the goal of promoting traditional Omani handicraft. “I worked with Omran as director of branding, and Omantel as senior manager of branding and communication. During my stints, I observed that corporate gifts never reflected Oman’s cultural identity. It prompted me to do an independent market research to learn about the alternatives available. It culminated in the launch of Dar Al Herfya,”…The Chief Executive Officer of Dar Al Herfya (World of Handicrafts) spends her days contacting potential clients and setting up meetings in which she explains the salient features of the hand-made products she sells and their role in sustaining the rural economy in Oman. Her hectic schedule has not diminished her enthusiasm a bit. “This has been my routine for the last three years. You have to work hard if you have a mission,” says Zuwaina of her pet project. In 2012, Zuwaina relinquished her top corporate job, and all the perks that went with it, to launch her own company with the goal of promoting traditional Omani handicraft. “I worked with Omran as director of branding, and Omantel as senior manager of branding and communication. During my stints, I observed that corporate gifts never reflected Oman’s cultural identity. It prompted me to do an independent market research to learn about the alternatives available. It culminated in the launch of Dar Al Herfya,”…