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Essay / Research Paper Abstract
This 11 page paper answers questions regarding monetary policy. The first part of the paper plots a supply and demand graph and then looks at how it will change for increases or decreases in supply and demand. The second part of the paper examines the way in which monetary policy may be used to manage the economy in the short term.
Page Count:
11 pages (~225 words per page)
File: TS14_TEmonecc.rtf
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Unformatted sample text from the term paper:
been plotted for the student who only has to join up the point to see the supply and the demand lines. Question 2 Any good, apart for
giffin goods, will find that the demand will increase as the price drops, and that the willingness to supply will increase as the price increases. The point at which the
price is set is usually the point of equilibrium, where the supply and demand lines cross. If these are joined into lines it appears that the equilibrium point will be
for 6,200,000 units at a selling price of 20.00 Question 3 If we use graphs to show the effects of different events we can show this on the above
graph, but to help the student with their own work we will show them how the lines may move. a). If there is an increase in the business taxes
levied this will decrease the willingness to supply the market as it reduces the level of profit per item sold and as such the supply line will move to the
left, indicating a lower level of supply, this will have the following effect If the point of equilibrium before was P then we can see when the
number of suppliers decreases there is an increase in price, and as such there are fewer buyers meaning that the new crossover point is P1 and the price will increase.
The actual level of the new point of equilibrium depends on the actual increase in business taxes. B. If there is a decrease in the number of buyers this will
see the demand sift move to the left. This can be seen below This time the supply lines remains the same, but the demand line has moved, as
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