Prepare an 8- to 10-slide Microsoft® PowerPoint® presentation focusing on budget analysis and the Required Supporting Information using the same…

Prepare an 8- to 10-slide Microsoft® PowerPoint® presentation focusing on budget analysis and the Required Supporting Information using the same CAFR from Week One. You are presenting to the old and new board members.

•Compare and contrast the use of budgets between governmental and for-profit organizations

•Analyze the impact on governmental revenue and expenditures of nondiscretionary fiscal policy

•Identify key performance measures for government and not-for-profit organizations.

•Discuss other measures that may be beneficial. ◦Click the Assignment Files tab to submit your assignment.

ECON 214

Problem Set 5

Complete all questions listed below. Clearly label your answers.

1. What impact will an unanticipated increase in the money supply have on the real interest rate, real output, and employment in the short run? How will expansionary monetary policy affect these factors in the long run? Explain.

2. How rapidly has the money supply (M1) grown during the past twelve months? State the rate of growth (use

http://www.federalreserve.gov/releases/h6/

) and the most recent release, use the seasonally adjusted figures. Calculate the rate of growth across the year by taking the (new amount of M1- old amount of M1)/old amount of M1). Given the state of the economy, should monetary authorities increase or decrease the growth rate of money? Explain why.

3. Is stability in the general level of prices through time important? Why or why not? Should price stability be the goal of monetary policy? Explain your responses.

4. Compare and contrast the impact of an unexpected shift to a more expansionary monetary policy under rational and adaptive expectations. Are the implications of the two theories different in the short run? Are the long-run implications different? Explain.

This assignment is due by 11:59 p.m. (ET) on Monday of Module/Week 6.