In the Global Context section of your report, you will expand your discussion from the particular case of Econland to consider the wider global context. Analyze the impacts of openness to trade in general. Why and how are the impacts of monetary and fiscal policies different in a closed economy versus an open economy?

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Macro Economics

Scenario

You have just completed your seven-year term as the chief economic policy advisor responsible for managing the economy of the nation of Econland. You are expected to create a report for the incoming administration. In this outgoing report, you will summarize your macroeconomic policy decisions and the economic outcomes for Econland. The purpose of this report is to share the lessons you’ve learned over your term and promote sound macroeconomic decision making moving forward.

Directions

First, assemble the materials that you will need to complete this assignment:

  • Access the Macroeconomics Simulation: Econland from Harvard Business Review and select either the Rollercoaster or Stagnation scenarios. Once you have completed your final year of your seven-year term, you can access the final reports under the Dashboard and Reports tabs at the top of the webpage. You will use these charts, graphs, and other visualizations to illustrate your report in the indicated areas of the template (for example, Table 1.1). Reach out to your instructor if you have any questions about accessing these resources.
  • Review and use the Project Template located in the What to Submit section.
    • The cover page, Table of Contents, and Introduction sections of your report are provided and should remain standard in all submissions except where indicated in the template. You should read the brief Introduction section, as it provides insight into the purpose and structure of the deliverable, and add the high-level descriptions where prompted.
    • There are placeholders in the template for your data visualizations (e.g., charts, graphs, tables, etc.). These placeholders are meant to give you a rough approximation of the placement of the visualizations that are required. You should replace the placeholders with the appropriate, indicated images in each case. To create an isolated image from the simulation data, it is recommended that you use a snipping tool or other image-editing software to copy and paste your data visualizations into the template. See the relevant tutorials in the Supporting Materials section for more information.
    • You are expected to reference any source material used in your report with appropriate citations. To support you, a References page has been added to the project template with the citation for the course’s reading already provided. Any other references you add should be cited according to APA format.

Once you have assembled the required materials listed above, you can now begin drafting your economic summary report by completing the following steps:

  • The first section of your report is the Introduction, in which you will personalize the provided content with the particular information related to your term (i.e., your simulation results) as the chief economic policy advisor for the nation of Econland. Follow the instructions in the template for contextualizing this section, including adding Table 3 from your simulation report to the indicated area of the template (i.e., Table 1.1). Then, add a two- to three-sentence summary specifying which underlying scenario you chose and your overall performance and approval rating.
  • Taxation Policies: In the Fiscal Policies: Taxation section of your report, discuss the taxation policies of Econland for the public and your successor. Within this section, you should add an image of Table 1 from your simulation results to the indicated area of the template (i.e., Table 2.1). Then, answer the following questions in the paragraphs below the table:
  • Government Spending: In the Fiscal Policies: Government Expenditure section of your report, discuss government spending policies of Econland for the public and your successor. Within this section, you should add an image of the “Real GDP Growth” and “Unemployment Rate” graphs from your simulation results and use an aggregate demand and aggregate supply (AD/AS) model to the indicated area of the template (i.e., Figures 3.1 and 3.2). Images of the AD/AS model can be found in the course reading or any reputable online source. Then, answer the following questions in the paragraphs below the figures:
  • Monetary Policies: In the Monetary Policies section of your report, discuss the monetary policies of Econland for the public and your successor. Within this section, you should add an image of the “Inflation Rate” graph from your simulation results to the indicated area of the template (i.e., Figure 4.1). Then, answer the following questions in the paragraphs below the figure:
  • Global Context: In the Global Context section of your report, you will expand your discussion from the particular case of Econland to consider the wider global context. Analyze the impacts of openness to trade in general. Why and how are the impacts of monetary and fiscal policies different in a closed economy versus an open economy? Support your claims with specific details from the course reading.
  • Conclusions: In the Conclusions section of your report, draw your overall conclusions about the relevance and significance of macroeconomics for the public and your successor.
  • Finally, ensure that all of your sources are properly cited using in-line citations and references according to APA format.

 

Develop and display a table that depicts the net cash flows associated with each alternative being compared. Compare the alternatives on an appropriate basis using an interest rate of 16% to account for the time value of money.

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 Art’s Rental Equipment

Art’s Rental Equipment provides construction equipment, trailers, tools, etc., on short-term rentals. Historically, the owner (Art) has paid full price at the time of purchase for all the items that he rents out. However, he now wants to consider considering acquiring those items by either by leasing them or paying for them over time. He has decided to use the purchase of a large bulldozer with a list price of $720,000 as a test case.

The following are three options for obtaining a new bulldozer that Art developed after negotiation with the manufacturer:

  1. Pay in full at the time of sale at an amount equal to the list price less a 5% discount for paying in cash.
  2. Pay for the new bulldozer with a four-year loan. In this case, Art would be required to make an initial down payment of 25% of the list price and then pay off the balance in four uniform annual payments based on an APR of 8.49%. (1)
  3. Lease a new bulldozer for an eight-year term at a cost of $124,000 per year, each year paid in advance. (2)

If the bulldozer is leased, it must be returned to the manufacturer at the end of the lease period. On the other hand, if Art purchases the bulldozer using either of the first two options, he will own it and, thus, could sell it for its salvage value when appropriate. Art estimates that the salvage value would be $360,000 after four years and $180,000 after eight years. These estimates are based on the fact that Art expects a bulldozer to have a useful life of eight years. Thus, Art will definitely replace the bulldozer after eight years of use but he also would be willing to replace it with a new one after four years if it were to be cost-effective to do so.

Regardless of how the bulldozer is obtained, operating and maintenance costs will be incurred every year; these are expected to start at $18,000 in the first year and increase by 10% each year thereafter. And whether the bulldozer is purchased or leased, it also must be insured for theft, catastrophic damage, and liability at a cost of $9,600 each year. On the plus side, the bulldozer is expected to generate a rental income of $200,000 every year.

What would you recommend Art to do, and why? In developing your recommendation, be sure to clearly:

– Identify all the alternatives you will be comparing;

– If needed, state any additional assumptions you need to make and indicate why you think these are both necessary and reasonable;

– Develop and display a table that depicts the net cash flows associated with each alternative being compared;

– Compare the alternatives on an appropriate basis (i.e., using either a present worth analysis or an annual cash flow analysis) using an interest rate of 16% to account for the time value of money. (3)

– Show or explain your work; and

– Clearly state your final recommendation.

(1) Annual payments are assumed here to help simplify your calculations. While a real-world company would almost surely pay off a loan with monthly payments, experience suggests that the assumption of annual payments should not have a substantial impact substantial on the results of the analysis here.

(2) Like most rental or lease agreements, the first year’s rental fee is due in advance. Thus, the rental fee for the first year is due at the end of year 0, the fee for the second year is due at the end of year 1, and so on.

(3) See the example in the section entitled “Analyzing Loans” starting on page 212 of the course textbook

 

Now set the rate of depreciation of human capital and the savings rate for human capital to the same values as those for physical capital. Does this change the rate of growth in equilibrium? Discuss what this changes about the predictions of the model and what it doesn’t change.

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Problem set

2. Growth theory

a. Go to canvas and retrieve the file “Growth theory work sheet.xlsx”, and make a copy of it (so you can go back to the original version if something gets messed up).

b. Open the work sheet and find the column that contains the production function. Ignoring, for the moment the values of the parameters, whose version of the Solow model is this (assuming that 0<f+b<1 and both f and b are positive)? Is the production function increasing in each of its inputs? Does it display decreasing returns to each input? Does it display constant returns to scale?

c. Now look at the parameters of the model. What input has no effect on output? So, taking into account the values of the parameters, what version of the Solow model is this?

d. In the spread sheet graph IQTL as a function of time. What does the graph show?

e. With the parameters as they are, Is the initial value of IQTL greater than the equilibrium value or less than the equilibrium value? How can you tell? What is the equilibrium value? What is the rate of growth of output? What is the rate of growth of output per worker? How does this fit with what we learned in class about this model.

f. Given your estimate of the equilibrium value of IC/TL change the starting value of K so that IC/TL is greater than the equilibrium value. How does this change your graph from d?

g. Now double the savings rate for investment in physical capital. How does this change your results. (After you answer this question set it back to .1)

h. Now set the rate of depreciation of human capital and the savings rate for human capital to the same values as those for physical capital. Does this change the rate of growth in equilibrium? Discuss what this changes about the predictions of the model and what it doesn’t change.

i. Now try the following. Set the exponent on H to .7 so that 1-b-f = 0. What does this mean for the contribution of labor growth to output growth? Note the values of the rate of growth of Y and Y/L. Now double the savings rate on physical capital. What happens to the growth rate? Why is this different from the result in g?

How have they done in the past? What is their current state? What kinds of plans and possibilities do they have for the future? Is there room for improving what they do? Should new ventures be added or old ones subtracted?

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Integrate concepts of regional, national, and global economic behavior with macroeconomic theory.

PC-4.1: Assess the value of multiculturalism and diversity in a global environment.

For this Assessment, you may use a Fortune 500 Company that you have already researched. ** Walmart** The focus here is on both domestic (American) and global operations. The Assignment incorporates how the firm functions in different parts of the world and what it can do to maximize its effectiveness as a global organization.

Directions

Begin by reviewing the following websites as resources for your Assessment:

Organisation for Economic Co-operation and Development (OECD). (2017). Economic indicators. Retrieved from http://www.oecd.org/std/oecdmaineconomicindicatorsmei.htm
U.S. Department of Commerce. (n.d.). Key economic indicators. Retrieved from https://www.commerce.gov/economicindicators
U.S. Bureau of Labor Statistics. (n.d.). Major economic indicators. Retrieved from https://www.bls.gov/bls/newsrels.htm
Select 6–10 macroeconomic indicators that are of particular relevance to your firm and explain how they affect the performance of the company. ** You need to include the data of the key indicators in the form of tables and/or graphs.**

Outline strategies on how the firm should respond to the changes in the economic indicators with the goal of maximizing revenues in the years ahead.

How have they done in the past?
What is their current state?
What kinds of plans and possibilities do they have for the future?
Is there room for improving what they do?
Should new ventures be added or old ones subtracted?
Then, discuss the firm’s global operations, and their influences on the regional and national levels. You also need to assess the value of multiculturalism and diversity in operating (managing) a company in a global environment.

As you can see, the field is wide open for you to construct your paper in the most relevant way you see fit.

Discuss your academic and professional goals for the next five years, goals if chosen to participate in the program, and plans to share the information learned during the program with others.

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Economic empowerment program

https://eg.usembassy.gov/wp-content/uploads/sites/156/2023-SUSI-Students-Leaders-Announcement.pdf

In your essay, discuss your

1) academic and professional goals for the next five years,

(2) goals if chosen to participate in the program, and

(3) plans to share the information learned during the program with others. (500 words max)

With the expansion of the global economy it is important to have effective international laws. Discuss the theoretical approaches to the development and enforcement of international law.

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Question 1

Compare the inquisitorial system with the adversary system. Be sure to address both key features and how they operate. Then, discuss the strengths and weaknesses of each and make a case as to why one may be superior to the other.

Question 2

With the expansion of the global economy it is important to have effective international laws. Discuss the theoretical approaches to the development and enforcement of international law.

 

Explain the Reserve system in full include its origin, creator, date of creation as well as the legal challenges to the reserve system and Courts’ various rationales. Explain the economic effect of the Reserve Clause.

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Reserve Clause

  1. Explain the Reserve system in full include its origin, creator, date of creation as well as the legal challenges to the reserve system and Courts’ various rationales. Explain the economic effect of the Reserve Clause.
  2. Explain the demise of the Reserve system in Major League Baseball. List all of those people involved and how it happened.
  3. Explain the NFL status with Anti-trust and explain the Roselle Rule and the Mackey case.
  4. Explain why the NFLPA decertifies during successor negotiations.

MAKE SURE TO GIVE DETAILED ANSWERS AND SITE YOUR SOURCES. FULLY ANSWER THE QUESTION, NO LENGTH REQURIMENT.

 

Calculate the rate of inflation for 2007 and 2008 using the GDP deflator as your price index. Assume that 2006 is still the base year. Using the quantities from 2006 for your market basket, and 2006 as your base year, calculate the CPI for 2006, 2007 and 2008. (

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Assignment 2 Questions: Chapter 10 & 11

(10 Marks)

  1. National income accounting deals with the aggregate measure of the outcome of economic activities. The most common measure of the aggregate production in an economy is Gross Domestic Product (GDP). The table below provides Country’s national income accounting. Use this data to answer the following questions.

 

 

Transfer Payments $ 54
Interest Income $ 186
Depreciation $ 36
Wages $ 67
Gross Private Investment $ 124
Business Profits $ 274
Indirect Business Taxes $ 74
Rental Income $ 75
Net Exports $ 18
Net Foreign Factor Income $ 12
Government Purchases $ 156
Household Consumption $ 304

 

  1. Calculate the GDP by using the Expenditure Approach Method (1Mark)
  2. Calculate the GDP by using the Factor Payment Approach or the Income Approach Method. (1 Mark)

 

Year Price of Pizza Quantity of Pizza Price of Burger Quantity of Burger Price of coffee Quantity of Coffee
2006 $ 4 200 $ 6 125 $ 8 100
2007 $ 6 350 $ 8 200 $ 9 175
2008 $ 7 600 $ 9 350 $ 12 250
  1. Suppose people consume 3 different goods. The following table shows the prices and quantities of each good consumed in 2006, 2007, and 2008.

Calculate nominal GDP in each of the three years. (1.5 Marks)

 

  1. Calculate Real GDP in each of the three years, using 2006 as the base year. (1.5 Marks)

 

  1. Calculate the rate of inflation for 2007 and 2008 using the GDP deflator as your price index. Assume that 2006 is still the base year. (2 Marks)
  2. Using the quantities from 2006 for your market basket, and 2006 as your base year, calculate the CPI for 2006, 2007 and 2008. (2 Marks)

 

  1. Using the CPI calculate the rate of inflation. (1 Mark)

 

What is the adjustment process being assumed? What determines whether you get convergence to the Nash equilibrium or divergence from the Nash equilibrium or cycles? How can you represent the dynamics on a diagram that shows the proportion playing each strategy?

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Rock paper scissors

A group of 10 students are matched into pairs to play rock paper scissors. They must simultaneously make a shape with their hand; scissors beats paper, paper beats rock and rock beats scissors. The payoffs are

  R P S
R 1,1 0,2 2,0
P 2,0 1,1 0,2
S 0,2 2,0 1,1

 

The game proceeds in multiple periods. At the beginning of every period, each student is endowed with a strategy: R, P, or S. Each student sticks to this strategy throughout the period and meets every other student once. Each student’s payoff in this period is the average payoff of the 9 interactions. At the end of the period, the strategy being used by the students getting the highest average payoff is revealed to one third of the students using each of the other two strategies (when this number is a fraction, it is rounded to the nearest integer) and they switch their strategies to this one for the next period. Everyone else sticks to the same strategy for the next period. The state of the system, (r, p, s), is the number playing each of the three strategies, R, P, or S for that period.

For example, suppose we are in state (8, 1, 1). This means for this period, 8 students are in the group playing R, 1 is playing P and 1 is playing S. It is easy to check that the one student playing P will have the highest average payoff for this period (f). Then one third of the group playing R is 23, and rounded to the nearest integer is 3. So 3 students from this group will be given the information that P had the highest average payoff and switch to playing P in the next period. One third of the group playing S is 3, and rounded to the nearest integer is 0. So no student in the group playing S (which is just 1 student in this case) will receive the information. So with these adjustment rules, the state moves to (5, 4,1) in the next period. For the transition we can use the notation (8, 1, 1) -> (5, 4, 1).

  • Show that we have a mixed strategy Nash equilibrium where each strategy is played with probability i. Give a brief explanation to why this game does not have a pure strategy Nash equilibrium.
  • Consider a period that is in state (5, 2, 3). Show that the payoffs are 1-99-, s and -:- respectively and the state therefore moves to (3, 5, 2) in the next period.
  • Follow the dynamic process for two more periods to identify a cycle (5, 2, 3) -+ (3, 5, 2) -> (2, 3, 5) -> (5, 2, 3)…. Comment on the dynamic process and contrast it with what we found for coordination games.
  • One of our 10 students is a genius! After keeping a record of past play they question whether they are right to simply stick to the same strategy unless they get information about the strategy getting the highest payoff. They in fact sit down with paper and pen to build a model that explains the data and correctly identify the adjustment process, the payoff matrix and the cycle the system is Suppose this happens in a period when the state is (2, 3, 5) and that they are currently one of the 5 students in the group playing S. Assume also that they are not picked as one of the 2 students from this group who are given the information. What strategy should they play next period? How reasonable are the rationality assumptions we are making, contrasting the game here with more complex environments?
    (e) If we were to start in the state (10, 0, 0) then we will be stuck in it even with our genius student as the only data anyone has is on playing R! What feature is missing from our adjustment process that would prevent this? Do you think this would make it more realistic?
    ( f ) Identify another cycle starting with the state (2, 4, 4) (hint; it is longer than the previous cycle). Describe the dynamics of the system when the feature identified in part e) is included.
    ( g ) Do an online search of rock paper scissors and summarise the evolutionary dy­namics of one model that you find with a focus on the following questions.

    • What is the adjustment process being assumed?
    • What determines whether you get convergence to the Nash equilibrium or divergence from the Nash equilibrium or cycles?
    • How can you represent the dynamics on a diagram that shows the proportion playing each strategy? (You can add in images that you find online or your own drawings and this will not be included in the word count)
  • (h) Do a search of the literature to address the question of how well experimental results correspond to the theoretical predictions of the dynamic processes in rock paper scissors games. (You can use just one paper that you find and present it in detail or two or more papers that relate to the question. More papers will not necessarily be better, the important thing will be demonstrating your understanding of the paper(s) you are discussing and if it is more than one paper, on contrasting them.)

 

Why must this equation always balance? What transactions increase or decrease owner’s equity? How does net income or loss affect owner’s equity?

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Economic resources

Explain the relationship between economic resources and claims to economic resources.

  • Why must this equation always balance?
  • What transactions increase or decrease owner’s equity?
  • How does net income or loss affect owner’s equity?
  • Provide an example of a transaction, applied to the accounting equation.