Intermediate Economics Case Study

Question Description

The Kingdom of Elfwood (A closed Economy in the LR) has been battling to increase production of Candy but have not been able to succeed.

Their economy can be expressed as:

C = 400+0.60(Y-T)

T = Y*0.8

G =4000

I = 750-100r

Y=5000

It turns out that the King of Elfwood has a sweet tooth for Candy and has been levying back breaking taxation on its population. The King has hired you to come up with some possible ideas as to how Elfwood could increase its production in the future? However, the king does not want to reduce his consumption of Candy, not does he want to run a budget deficit.

For questions 1 to 3, Make sure you also talk of how it impacts the economies agents and aggregate values (C,I,S and Y).

Question 1

Propose to the king your plan to increase future production (even if the CE model can’t explain it). Make sure you are able to properly articulate what you want to do and how those changes will make there way in the economy

Question 2

Could policies to change household consumption pattern work? Provide 1 numerical possibility and explain how this change could be achieved. Make sure you are able to properly articulate what you want to do and how those changes will make there way in the economy.

Here I am looking for you to provide me with a possible numerical change, and to explain how you would achieve it.

Question 3

Could policies to change Investor pattern work? Provide 1 numerical possibility and explain how this change could be achieved. Make sure you are able to properly articulate what you want to do and how those changes will make there way in the economy.

Here I am looking for you to provide me with a possible numerical change, and to explain how you would achieve it.

Question 4

The King then asked you if you believe that he should reduce his consumption of Candy? Which would reduce Government expenditures and Tax revenue by the same proportion. Would this help in achieving its goal?

Provide and example where Government expenditures drop by 25%.

Format Requirement

Question 1

Problem:

Proposed change:

Numerical proposed change (if needed):

Justification:

Numerical Justification (if needed):

Having all your answer in 1 giant paragraph, simply wont be graded.



^{Have a similar assignment? "Place an order for your assignment and have exceptional work written by our team of experts, guaranteeing you A results."}

Our Service Charter

1. Professional & Expert Writers: Eminence Papers only hires the best. Our writers are specially selected and recruited, after which they undergo further training to perfect their skills for specialization purposes. Moreover, our writers are holders of masters and Ph.D. degrees. They have impressive academic records, besides being native English speakers.

2. Top Quality Papers: Our customers are always guaranteed of papers that exceed their expectations. All our writers have +5 years of experience. This implies that all papers are written by individuals who are experts in their fields. In addition, the quality team reviews all the papers before sending them to the customers.

3. Plagiarism-Free Papers: All papers provided by Eminence Papers are written from scratch. Appropriate referencing and citation of key information are followed. Plagiarism checkers are used by the Quality assurance team and our editors just to double-check that there are no instances of plagiarism.

4. Timely Delivery: Time wasted is equivalent to a failed dedication and commitment. Eminence Papers are known for the timely delivery of any pending customer orders. Customers are well informed of the progress of their papers to ensure they keep track of what the writer is providing before the final draft is sent for grading.

5. Affordable Prices: Our prices are fairly structured to fit in all groups. Any customer willing to place their assignments with us can do so at very affordable prices. In addition, our customers enjoy regular discounts and bonuses.

6. 24/7 Customer Support: At Eminence Papers, we have put in place a team of experts who answer all customer inquiries promptly. The best part is the ever-availability of the team. Customers can make inquiries anytime.