Category: Macro Economics

Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
All answers must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).

What is money multiplier? How is it related to the reserve ratio? Calculate the total maximum and total minimum possible money supply due to the deposit of 200 SAR in a bank. The country follows a fractional reserve banking system, and the Reserve ratio is 20%.
Caselet On Unemployment (Question no 2&3)
Many Theories are given by different experts to explain the reasons behind unemployment. One reason for unemployment may be downswings (periods of recession) in the business cycle.
Another reason behind wide-scale unemployment refers to structural unemployment. Structural unemployment arises from longer-term changes in the economy, affecting specific industries, regions, and occupations. Structural unemployment often explains regional unemployment. Some industries in India have lost their business and so employment to the cheaper imports coming from abroad.
Some experts explain that new technology is a cause of unemployment which is also known as technological unemployment. The argument is that the introduction of new technology is destroying jobs and business while at the same time imports from low-wage developing countries are undercutting goods produced in this country.
However, many studies may contradict this. New technologies generally help in producing new products, or services and therefore new areas of employment. Sometimes fewer workers may be required in some areas of production where specific tasks are taken over by machines, but rising productivity boosts overall income and then the demand for new jobs in the economy as a whole.
Q2: What are the main causes of Unemployment? Do you agree that technological up-gradation in any industry may cause unemployment in that industry? Provide your opinion with one example.
Q3: Structural unemployment in many countries touchedits highest peak during the coronavirus pandemic, but it seems that most of the industries in KSA were not thatmuch affected. Discuss the role of the Saudi Government in reducing the impact of Corona pandemic on employment in Saudi Arabia.
Caselet On Insurance Market (Question no 4)
In a sense, every insurance contract is a gamble. It is possible that you will not be in an auto accident, that your house will not burn down, and that you will not need expensive medical treatment. In most years, you will pay the insurance companythe premium and get nothing in return except peace of mind. Indeed, the insurance company is counting on the fact that most people will not make claims on their policies; otherwise, it couldn’t pay out the large claims to the unlucky few and still stay in business.
From the standpoint of the economy as a whole, the role of insurance is not to eliminate the risks inherent in life but to spread them around more efficiently.
The markets for insurance suffer from two types of problems that impede their ability to spread risk. One problem is adverse selection: The second problem is moral hazard:
Q4:Adverse Selection and Moral Hazard are two important problems of Insurance companies. Explain each with the help of an example. Also, suggest solutions to the Insurance companies to tackle these problems in the insurance market.

Instructions
Assignment 1: Demand-side Policies and the Great Recession of 2008Macroeconomic analysis deals with the crucial issue of government involvement in the operation of “free market economy.” The Keynesian model suggests that it is the responsibility of the government to help to stabilize the economy. Stabilization policies (demand-side and supply-side policies) are undertaken by the federal government to counteract business cycle fluctuations and prevent high rates of unemployment and inflation. Demand side policies are government attempts to alter aggregate demand (AD) through using fiscal (cutting taxes and increasing government spending) or monetary policy (reducing interest rates). To shift the AD to the right, the government has to increase the government spending (the G-component of AD) causing consumer expenditures (the C-component of AD) to increase. Alternatively the Federal Reserve could cut interest rates reducing the cost of borrowing thereby encouraging consumer spending and investment borrowing. Both policies will lead to an increase in AD.
Develop an essay discussing the fiscal and the monetary policies adopted and implemented by the federal during the Great Recession and their impacts on the U.S. economy. Complete this essay in a Microsoft Word document, and in APA format. Note your submission will automatically be submitted through “TurnItIn” for plagiarism review. Please note that a minimum of 1500 words for your essay is required.
Your paper should be structured as follows
1. Cover page with a running head
2. Introduction: What is the economic meaning of a recession?
· A brief discussion of fiscal policies
· A brief discussion of monetary policies
3. Conclusions: Discuss the extent to which the use of demand side policies (fiscal policy and monetary policy) during the Great Recession of 2008 has been successful in restoring economic growth and reducing unemployment
4. References
Include in your essay analyzing the advantages and disadvantages of deficit spending and the effects of federal government borrowing on the economy i.e., the “crowding out” effect.

NOTE: You can submit more than one file, but only the last submitted file will be looked at and graded
Project Name: “Help an instructor in grading…”

Context:
In a “Principles of Macroeconomics” class, the instructor, Professor Smith Jones, assigned an online “Essay” to be submitted and asked the students to analyze an “article” on the minimum wage policies written by Ben Casselman and Lydia DePillis. The minimum wage topic was also explained by the class’s “textbook” (i.e., Principles of Microeconomics, Third Edition, by OpenStax).
Professor Jones instructed his students to analyze the article under consideration with respect to the textbook materials, and then write their inputs and submit it in a Dropbox. He provided specific grading rubrics for for the minimum wage essay and informed the students on how he will be grading their work.
One of his students, Susan Kalanti, has submitted her essay and named it “Susan’s Essay.”
Your job:
Your job in this project is to help Professor Jones to fairly grade the essay named “Susan’s Essay” following the rubrics that he has provided.
Below, you find three PDF files that show the professor’s assignment, the published article, and the student’s essay.
The-Assignment.pdf (By Smith Jones, the professor)
The-Article.pdf (By Alison Doyle, the article’s writer)
Susan-Essay.pdf (By Susan Kalanti, the student)

Project Instructions:
Instructions for working on this project:
Important: You need to “help” the professor in the grading, but you do not “grade” yourself.
Do not grade Susan’s Essay. You only help the instructor grade Susan’s Essay, which means:You do not give your “general” feedback(s) on Susan’s Essay, like if her work is well done or not!
You need to check the validity of Susan’s statements and claims in her essay.
Do not miss a single claim or statement in Susan’s essay. (p.s., a certain “claim” made by Susan mightinvolve multiple “statements”).For example, if Susan says that the textbook is in favor of increasing the minimum wage, you have to check if the textbook is really in favor of raising the minimum wage or not. Another example, if Susan says the minimum wage has to go down, then you need to evaluate her claim using your read from the article, and from the textbook.
Be reliant on the grading rubrics in the professor’s assignment.
You help the professor by analyzing Susan’s Essay, statement by statement; to check whether each statement or claim made by Susan is true, false, valid, invalid, logical, or illogical (with explanation).
IMPORTANT: Write each statement or claim (from Susan’s Essay) you analyze in bold text, and below it write your analysis. This requirement is strictly enforced.
Make sure you do not miss analyzing and explaining any statements and claims made by Susan.
You will need to carefully read the “article” and the “textbook on the price floor policies” to validate Susan’s arguments in her essay (the minimum wage is an application of the price floor policies).
“Actual minimum” of 400 words is required in your project.
Important: The actual minimum is the minimum number of words of your analysis, excluding statements from Susan’s Essay you rewrite in your submission. In other words, copying the statements from Susan’s Essay in your submission doesn’t count when counting the number of words in your project.
You do not need to work on this project in an essay writing format; you just list – in Bold – the statements and/or claims made by Susan and write your analysis under each statement/claim. Bullet points are fine, too.

Assignment 3
Q1: What is money multiplier? How is it related to the reserve ratio? Calculate the total maximum and total minimum possible money supply due to the deposit of 200 SAR in a bank. The country follows a fractional reserve banking system, and the Reserve ratio is 20%. [2.5 Marks]
Caselet On Unemployment (Question no 2&3)
Many Theories are given by different experts to explain the reasons behind unemployment. One reason for unemployment may be downswings (periods of recession) in the business cycle.
Another reason behind wide-scale unemployment refers to structural unemployment. Structural unemployment arises from longer-term changes in the economy, affecting specific industries, regions, and occupations. Structural unemployment often explains regional unemployment. Some industries in India have lost their business and so employment to the cheaper imports coming from abroad.
Some experts explain that new technology is a cause of unemployment which is also known as technological unemployment. The argument is that the introduction of new technology is destroying jobs and business while at the same time imports from low-wage developing countries are undercutting goods produced in this country.
However, many studies may contradict this. New technologies generally help in producing new products, or services and therefore new areas of employment. Sometimes fewer workers may be required in some areas of production where specific tasks are taken over by machines, but rising productivity boosts overall income and then the demand for new jobs in the economy as a whole.
Q2: What are the main causes of Unemployment? Do you agree that technological up-gradation in any industry may cause unemployment in that industry? Provide your opinion with one example. [2.5 Marks]
Q3: Structural unemployment in many countries touched its highest peak during the coronavirus pandemic, but it seems that most of the industries in KSA were not that much affected. Discuss the role of the Saudi Government in reducing the impact of Corona pandemic on employment in Saudi Arabia. [2.5 Marks]
Caselet On Insurance Market (Question no 4)
In a sense, every insurance contract is a gamble. It is possible that you will not be in an auto accident, that your house will not burn down, and that you will not need expensive medical treatment. In most years, you will pay the insurance company the premium and get nothing in return except peace of mind. Indeed, the insurance company is counting on the fact that most people will not make claims on their policies; otherwise, it couldn’t pay out the large claims to the unlucky few and still stay in business.
From the standpoint of the economy as a whole, the role of insurance is not to eliminate the risks inherent in life but to spread them around more efficiently.
The markets for insurance suffer from two types of problems that impede their ability to spread risk. One problem is adverse selection: The second problem is moral hazard:
Q4: Adverse Selection and Moral Hazard are two important problems of Insurance companies. Explain each with the help of an example. Also, suggest solutions to the Insurance companies to tackle these problems in the insurance market. [2.5 Marks]

Assignment 3
Q1: What is money multiplier? How is it related to the reserve ratio? Calculate the total maximum and total minimum possible money supply due to the deposit of 200 SAR in a bank. The country follows a fractional reserve banking system, and the Reserve ratio is 20%. [2.5 Marks]

Caselet On Unemployment (Question no 2&3)

Many Theories are given by different experts to explain the reasons behind unemployment. One reason for unemployment may be downswings (periods of recession) in the business cycle.
Another reason behind wide-scale unemployment refers to structural unemployment. Structural unemployment arises from longer-term changes in the economy, affecting specific industries, regions, and occupations. Structural unemployment often explains regional unemployment. Some industries in India have lost their business and so employment to the cheaper imports coming from abroad.
Some experts explain that new technology is a cause of unemployment which is also known as technological unemployment. The argument is that the introduction of new technology is destroying jobs and business while at the same time imports from low-wage developing countries are undercutting goods produced in this country.
However, many studies may contradict this. New technologies generally help in producing new products, or services and therefore new areas of employment. Sometimes fewer workers may be required in some areas of production where specific tasks are taken over by machines, but rising productivity boosts overall income and then the demand for new jobs in the economy as a whole.
Q2: What are the main causes of Unemployment? Do you agree that technological up-gradation in any industry may cause unemployment in that industry? Provide your opinion with one example. [2.5 Marks]
Q3: Structural unemployment in many countries touched its highest peak during the coronavirus pandemic, but it seems that most of the industries in KSA were not that much affected. Discuss the role of the Saudi Government in reducing the impact of Corona pandemic on employment in Saudi Arabia. [2.5 Marks]

Caselet On Insurance Market (Question no 4)

In a sense, every insurance contract is a gamble. It is possible that you will not be in an auto accident, that your house will not burn down, and that you will not need expensive medical treatment. In most years, you will pay the insurance company the premium and get nothing in return except peace of mind. Indeed, the insurance company is counting on the fact that most people will not make claims on their policies; otherwise, it couldn’t pay out the large claims to the unlucky few and still stay in business.
From the standpoint of the economy as a whole, the role of insurance is not to eliminate the risks inherent in life but to spread them around more efficiently.
The markets for insurance suffer from two types of problems that impede their ability to spread risk. One problem is adverse selection: The second problem is moral hazard:
Q4: Adverse Selection and Moral Hazard are two important problems of Insurance companies. Explain each with the help of an example. Also, suggest solutions to the Insurance companies to tackle these problems in the insurance market.[2.5 Marks]

Assignment 3
Q1: What is money multiplier? How is it related to the reserve ratio? Calculate the total maximum and total minimum possible money supply due to the deposit of 200 SAR in a bank. The country follows a fractional reserve banking system, and the Reserve ratio is 20%. [2.5 Marks]
Caselet On Unemployment (Question no 2&3)
Many Theories are given by different experts to explain the reasons behind unemployment. One reason for unemployment may be downswings (periods of recession) in the business cycle.
Another reason behind wide-scale unemployment refers to structural unemployment. Structural unemployment arises from longer-term changes in the economy, affecting specific industries, regions, and occupations. Structural unemployment often explains regional unemployment. Some industries in India have lost their business and so employment to the cheaper imports coming from abroad.
Some experts explain that new technology is a cause of unemployment which is also known as technological unemployment. The argument is that the introduction of new technology is destroying jobs and business while at the same time imports from low-wage developing countries are undercutting goods produced in this country.
However, many studies may contradict this. New technologies generally help in producing new products, or services and therefore new areas of employment. Sometimes fewer workers may be required in some areas of production where specific tasks are taken over by machines, but rising productivity boosts overall income and then the demand for new jobs in the economy as a whole.
Q2: What are the main causes of Unemployment? Do you agree that technological up-gradation in any industry may cause unemployment in that industry? Provide your opinion with one example. [2.5 Marks]
Q3: Structural unemployment in many countries touched its highest peak during the coronavirus pandemic, but it seems that most of the industries in KSA were not that much affected. Discuss the role of the Saudi Government in reducing the impact of Corona pandemic on employment in Saudi Arabia. [2.5 Marks]
Caselet On Insurance Market (Question no 4)
In a sense, every insurance contract is a gamble. It is possible that you will not be in an auto accident, that your house will not burn down, and that you will not need expensive medical treatment. In most years, you will pay the insurance company the premium and get nothing in return except peace of mind. Indeed, the insurance company is counting on the fact that most people will not make claims on their policies; otherwise, it couldn’t pay out the large claims to the unlucky few and still stay in business.
From the standpoint of the economy as a whole, the role of insurance is not to eliminate the risks inherent in life but to spread them around more efficiently.
The markets for insurance suffer from two types of problems that impede their ability to spread risk. One problem is adverse selection: The second problem is moral hazard:
Q4: Adverse Selection and Moral Hazard are two important problems of Insurance companies. Explain each with the help of an example. Also, suggest solutions to the Insurance companies to tackle these problems in the insurance market. [2.5 Marks]

Adhere to the conditions contained in the file
””no plagiarism””
don’t forget the references
Solve in same file

Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
All answers must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).

The Assignment must be submitted on Blackboard (WORD format only) via the allocated folder.
The due date for Assignment 1 is 02/12/2023.
Assignments submitted through email will not be accepted.
Students are advised to make their work clear and well-presented, marks may be reduced for poor presentation. This includes filling in your information on the cover page.
Students must mention the question number clearly in their answers.
Late submissions will NOT be accepted.
Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
All answers must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).
Submissions without this cover page will NOT be accepted.
Q1=ch16
Q2.=ch15
Q3=ch15
Q4=ch14