03 Jun Question Hints for Getting Good Grades on Assignments, Tests and E
Question
Hints for Getting Good Grades on Assignments, Tests and Exams:
(a) Your future employer will judge a response to her questions as being acceptable only if it is
concise, well-organized and well-explained. To get you use to that fact, I will judge responses
to my questions as being acceptable only if they are concise, well-organized and wellexplained.
(b) Economists use models to clarify arguments and highlight important assumptions. Unless you
are told otherwise, you should answer questions in the context of economic models.
(c) You will often be asked, or simply find it useful, to use a diagram to prove or illustrate your
answer. Keep in mind that a diagram presented without an explanation of shifts and movements
in the diagram will receive no marks. Similarly, should you use mathematical man ipulations to
answer a question you must show and explain each step in your derivation.
Question One: (10 marks)
The sticky-wage and the worker-misperception models of aggregate supply both suggest an upward
sloping short-run aggregate supply (SRAS) curve. The SRAS curve will be steeper under one of
these theories than it will be under the other. Which is it? Prove your answer by deriving the SRAS
curve implied by each of these theories. Explain all shifts and movements in your diagram(s).
Question Two: (10 marks)
Consider an economy which can be reasonably described by an IS/LM model. Assume the
economy is in equilibrium and assume that the interest rate (r) and the level of real income (Y) are
endogenous variables. Finally, assume the IS and LM curves have the usual slopes. Now suppose
the government of this economy announces it plans to reduce the level of government spending (G).
You are an economist working for a large corporation. The president of the corporation asks you to
provide an economic forecast detailing the effect the government’s forthcoming policy will have on
the economy. With the aid of an IS/LM diagram, describe the resulting disequilibrium (what
markets are out of equilibrium and what is the nature of this disequilibrium) and the economic
forces at work moving these markets back into equilibrium. Your answer should include a
description of what would we expect to happen to inventory investment, the price of bonds, the
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.