Call us 24/7: + 1(925)399 0085

Get your paper done by an expert

No matter what kind of academic paper you need, it is simple and secure to hire an essay writer for a price you can afford at StudyAcer. Save more time for yourself.

WhatsApp + 1(925)399 0085
$ 10
free
  • bibliography
  • title page
  • revisions
per page
19 k happy customers
4.7 out of 5 satisfaction rate
27 writers active

Homework sample essay

Chapter 18 p534 1.What is the key assumption of the basic Keynesian model? Explain why this assumption is needed if one is to accept the view that aggregate spending is a driving force behind short-term economic fluctuations.

The Keynesian model shows how fluctuations in planned aggregate expenditure can cause actual output to differ from potential output. This method is necessary because if it were not used companies would have to change prices every time there was a possible change in demand or quantity shift in inventory. With this method short term economic flux can happen when the a company does shift their price to meet demand.

3. Define planned aggregate expenditure and list its components. Why does planned spending change when output changes relatively infrequently. What accounts for the difference?

This is a total planned spending on goods and services including; consumption, investment, government purchases and net ports. If spending change happens infrequently then added goods go into inventory causing company to spend capital on invested inventory. Consumption function accounts for the difference between changes in expenditure.

Chapter 19

1. Why does the real interest rate affect planned aggregate expenditure? Give examples.

Because the raising or lowering affects the cost of borrowing, which affects consumption and planned investment (which all is a part of aggregate expenditure). If the Fed raises rates the housing market will slow down buying. If the Fed lowers rates more people are likely to buy homes and refinance.

2. The Fed faces a recessionary gap. How would you expect it to respond? Explain step by step how its policy change is likely to affect the economy.

The Fed’s position is to eliminate output gaps and maintain low inflation. To eliminate a recessionary output gap, the Fed will raise the real interest rate.

Our guarantees

Study Acers provides students with tutoring and help them save time, and excel in their courses. Students LOVE us!No matter what kind of essay paper you need, it is simple and secure to hire an essay writer for a price you can afford at StudyAcers. Save more time for yourself. Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Our Homework Writing Disciplines

With a highly diverse team in almost all academic fields including: