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This assignment is due on Sunday Sept 2, 2012 at 6am CST , it should contain a reference page at the end , and the similarity scores cannot be more than 15%. In text citation is highly require and APA format must be use to complete this assignment and for the references. SECTION A Write 1000 word document that respond to the question below , each part must be clearly responded to, and APA format must be use , a reference page must also be included at the end .of this section. The similarity scores cannot be more than 15% Part I Describe John Maynard Keynes’ contribution to the theories of Macroeconomics. Why was he such an important economist? Discuss the theories of two other 20th century economists who made a significant contribution to the study of economics. Part II Assume that Country A has a population of 500,000 and only produces one good—cars. Country A produces 100,000 cars per year. The people in Country A purchase 90,000 cars, but there are not enough cars to fulfill all the demand. They decide to import 50,000 more. The government buys 25,000 cars for its police force, and 10,000 cars are bought by companies to transport employees to other locations to work. They also export 65,000 cars to nearby countries for sale. What is Country A’s GDP? What is the composition of GDP by percentage? What is the GDP per capita? If government purchases go up in the short run, what happens to GDP? Show this graphically. If consumption and government purchases go up, what happens to GDP in the long run? Why? How would this look in a graph? How does this relate to Keynesian economics? Part III Go to the Bureau of Economic Analysis on the Department of Commerce’s Web site, and look up the latest new release for real GDP. Where are we in the business cycle? What is the real GDP today? What is the nominal GDP today? What is the difference between nominal and real GDP? What...



Answered Same DayDec 20, 2021

Answer To: Please see attachment for details regarding this assignment , it is important that your expert read...

Robert answered on Dec 20 2021
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RUNNING HEAD: MACROECONOMICS
Macroeconomics 1
Running Head: MACROECONOMICS
Macroeconomics
Name
Institution
Macroeconomics
Part 1
John Maynard Keynes and his Contribution to Macroeconomics
John Maynard Keynes is a popular British economist mostly described as the founding father of macro-economics. He is considered one of the three most influential
economists alongside Adam smith and Karl Marx. He has continued to influence the economies of the world through the famous Keynesian economics formed from his proponents. One of Keynes principal contributions is the role of government through interventionist policies during the great depression. Keynes advocated for a mixed economy because market mechanisms are not enough to bring about full employment levels and equilibrium during depressions or inflations (Keynes, 2006). His propositions have been drawn upon during the 2008 global financial crisis.
Keynes greatly contributed in the understanding of macroeconomic factors such as employment, inflation, savings and investment through his book “The General Theory of Employment, Interest and Money (1936)”. He developed the concept of liquidity trap in the money market and explained the role of savings on investments and economic growth. He then developed the IS-LM Model forming the basis of economic analysis, monetary policy and interest rate determination to date. As a result, the concepts of Marginal Propensity to Consume (MPC) and the Marginal Propensity to Save (MPS) along with the Multiplier effect have become central in macroeconomic policies (Williamson, 2005).
Keynesian theory developed a model of determining equilibrium prices and output by applying the expenditure and the income model with the aggregate demand and supply model. He used the multiplier effect to analyze the effects of interest rates on investment. He also made great contributions on fiscal policy and its role on the economy through employment and inflation. Keynes simplified macroeconomics by developing the Philips curve to illustrate the relationship between inflation and unemployment (Keynes, 2006).
Excepting postulation of theories, Keynes took part in the formation of Bretton Woods institutions. He and other economists advocated for the world central bank and an international currency. These are the ideas shaped World Bank and IMF as Bretton Woods institutions. Posthumously, Keynes has continued to contribute to macroeconomics through criticism and followings. Neo-classical economists such as Milton Friedman developed their ideas in criticism of Keynesian economies (Williamson, 2005).
Theories of 20th Century Significant Economists
Joseph Alois Schumpeter – The Theory Of Economic Development
Schumpeter is an Austrian-Hungarian-American economist famous for his popular term “creative destruction”.  He has made several significant contributions to the contemporary economics through business cycles, entrepreneurship and economic development. He analyzed business cycles and classified them into four economic waves. Particularly he expounded the role of innovation in economic development. He argued that the entrepreneur disturbs the circular flow of income which leads to development. He saw entrepreneurship as the main source of development and employment. He also developed a different equilibrium from that of Keynes. The Walrasian equilibrium according to him is not enough to capture the mechanisms of development. Unlike Karl Marx, he predicted the demise of capitalism through “creative economics” (Boyes & Melvin, 2012).
Adam Smith – The...
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