代写Econ:214 Intermediate Macroeconomics Homework 3帮做R程序

日期：2024-06-06 12:10

Econ:214 Intermediate Macroeconomics

Homework 3

Due Date: Jan 31, 2024

Problem 1. Use the one-period model to explain why tax on capital is not a good idea. Determine the effects of capital tax on aggregate output, consumption, employment and the real wage. Please use diagrams and words to illustrate your arguments.

Problem 2. In a simplified model with proportional taxation there can be two equilibria, one with a high tax rate and one with a low tax rate. Now, suppose that government spending increases. Determine the effects of an increase in G on consumption, leisure, labour supply, real output, and the tax rate in a high-tax-rate equilibrium and in a low-tax-rate equilibrium. How do you your results differ?  Explain why.  (Hint:  you need to refer to the Laffer curve first to check how does the change in G affect the tax rates.)

Problem 3. The attached Excel spreadsheet contains two datasets; one is for Canada, and the other is for the US. You need to conduct the calculations for each country separately. Plot the detrended real government expenditure v.s.  the detrended real consumption, and calculate the correlation coefficient between these time series. Can  you identify any crowding-out effects of government expenditure on aggregate consumption? Next, plot the detrended real GDP v.s. the detrended real government expenditure and compute the correlation coefficient between them. What kind of comovement patterns can you observe?  Is the prediction of the one-period model consistent with what you observe?