Cheap Research Papers on Econ 2480 – Intermediate Macroeconomics II Assignment 1

20 percent of total course mark
Length and Format:
This assignment has two parts and is based on material you have covered in units 1 and 2.
Your answer for part 2 of this assignment should be 2 to 3 pages in length excluding references, tables, and diagrams. It should be typed, double spaced, 1 inch margins all around, and no more than 12 point font.
Please follow the University of Chicago Style for format and references. Remember that you should express ideas in your own words, even those from the textbook. You should cite all sources that you use to support your answer.

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PART 1 – 5%
1.
In what sense is money neutral? Why is monetary policy useful even though money is neutral?
2.
Suppose investment is not responsive to the interest rate. Can you think of a situation where this might happen? What does this imply for the IS, LM and AD curves? Econ 2480 – Intermediate Macroeconomics II 1
PART 2-15%
Identify two or more recent negative macroeconomic events that have affected a country of your choice. For example, these events could have been a drop in consumer confidence, increase in the price of oil, change in monetary policy, falling house prices, etc. Find out what has been reported on these events in articles in newspapers such as The Economist, Wall Street Journal, Globe & Mail, Financial Post, etc.

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Required:
Using the AS-AD model and your knowledge of the workings of the labour market, prepare a report that includes the following:
1.
a brief analysis of the economic condition of the country of your choice
2.
a description of the events and their effects on the main macroeconomic aggregates (i.e. inflation, unemployment, and output)
3.
an evaluation of the extent to which the AS-AD model and your knowledge of the labour market sheds light on what is happening in that country’s economy because of the macroeconomic events you identified (You may use diagrams, if necessary, to supplement your answer.)
4.
Using your knowledge, propose what you think will think will happen to this country’s economy in the short run and medium run. State assumptions you make and any limitations of your assessment.

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