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Homework 4 - able to make their case Question 2 Economic...

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Temple University Department of Economics Econ 1101: 013 - Principles of Macroeconomics Instructor: Ken Chesoli Homework 4 – Due Monday Nov 8 Answer the following three questions Question 1 The Republican and Democratic leadership in the US seem to have different viewpoints when it comes to government running a deficit expenditure spending. The Republicans are often opposed to the idea of the government spending beyond what it receives in tax revenue. They maintain this often hurts the business sector and leads to the shrinkage in the economy. (a) By means of well drawn graphs, show how the Republicans make their case. (b) What do we call that scenario explained in (a) above? The democrats argue that the situation is not as bad as you have indicated above. What explanation do they provide? Show by means of a well drawn and labeled graph how they are
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Unformatted text preview: able to make their case. Question 2 Economic growth is possible through capital accumulation, and if we are able to attain higher and better production function (PF). Show how there can be growth in GDP even when there is no change in the amount of hours worked per year. Please draw a single graph to answer this question. Question 3 Some in the US are opposed to immigration reforms, on the basis that illegal immigrants, among other things, cause average wages earned by an American worker to fall. Others argue that these people play an important role, and that in fact, our economic growth depends on them. Provide an in depth explanation why both groups are right in saying what they say. Remember to draw well labeled graphs to support the two sides your response above....
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