Microeconomics- Word and Graph Requirement

To begin with this is a multi-Question Writing Assignment. Therefore you must complete all three Questions. Meet the minimum word and graph requirement. If applicable, for each Question. You are expected to provide a thorough explanation and analysis. Required graphs must be DRAWN by you and submitted as part of your assignment.  Every Writing Assignment expects you to use “positive economic analysis”, as defined in Chapter 1 of the textbook. In other words, please do not express your opinion. Use economic analysis to answer the questions. Finally, your goal is to convince me that you know and understand the economic tools that you use to answer the questions.   Question 1: Firstly four Key Markets and the Circular Flow of Income. Source–Gwartney Chapter 9 Exhibit 1 (400 word minimum).  Explain, as best you can, Chapter 9 Exhibit 1.

Therefore your objective is to convince me that you understand Exhibit 1.   Question 2: Secondly how an economy self-adjusts to full-employment equilibrium without government intervention.Source–Gwartney Section 10-7 (300 word minimum + REQUIRED Graph) Referring to the AD-AS model, explain how changes in resource prices, interest rates, and the exchange rate value of the currency will tend to direct an economy back toward full employment after a recessionary disruption. REQUIRED: Use graphical analysis (AD-AS model) to support your explanation (300 words plus graph).   Question 3: Thirdly fractional Reserve Banking: Source–Gwartney 13-5 (300 words) You deposit a $2,000 check in the bank. Consequently if the required reserve ratio is 10 percent. Therefore thoroughly explain how the banking system will create new money. Finally how much money can potentially be created.

Additional Rules:

Submissions must be in Microsoft Word or PDF format. Draw graphs and submit as part of your paper. Late submissions will not be accepted. All work must be your own. Do not collaborate with classmates; do not copy and paste from the internet or any other source. You can use any course material to complete the Assignment (open book, notes, PowerPoints). DO NOT USE OUT-OF-CLASS research or reference materials. Use “positive” economic analysis, as defined in chapter 1. Again, your objective should be to convince me that you know the topic. Please see the Writing Assignment Rubric below for how your grade will be determined.

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