economic essay questions 1

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  • Requirement: 4-5 pages , single space
  • I.Essay Questions

Q1:

  • a)What is GDP? Provide at least 2 interpretations of the concept GDP
  • b)Explain the relationship between Aggregate Demand and GDP.
  • c)Develop a mathematical model explaining GDP, and describe the impact of each its components.
  • d)What is the Keynesian theory of the macro economy? Use the AD/AS model to explain.
  • e)What is the Fiscal policy? What are the goals of Fiscal Policy? What are the tools of Fiscal Policy?
  • f)Explain how contractionary fiscal policy would be implemented. What are the difficulties in implementing this?
  • g)How effective do you believe fiscal policy to be?

Q2:

  • a)What is money? What, today, comprises money?
  • b)What is monetary theory? Explain the Equation of Exchange. What is the role of money in the macro economy?
  • c)What is the Federal Reserve? What are its important functions?
  • d)What is monetary policy? why are banks the means (mechanism) by? Which monetary policy must work?
  • e)What are the goals of monetary policy?
  • f)What are the tools of monetary policy? explain each
  • g)What is the target variable?
  • h)Give an example of expansionary monetary policy, showing the role of the Fed, banks, and any other economic entity.