Ecn60204 Macroeconomics|Demand And Supply Assessment Answer

Oil companies rush to exploit end of U.S. crude export ban. U.S. energy group Enterprise and oil trader Vitol raced to exploit the end of a 40-year ban on most U.S. crude exports, the first of many firms eager to "stress test" last week's historic opening. Despite a sudden change in global oil market conditions that many oil traders say has eliminated the economic advantage of shipping domestic crude far abroad, some companies that have long lobbied for the change in policy may be eager to show that their effort was not in vain, according to some experts. a)Analyse the impact on US dollar (USD) if crude oil export ban to Japan is removed. Discuss your answer using direct quote exchange rate under the flexible exchange rate system. Support your analysis with appropriate diagram. b)Applying the Keynesian Income Expenditure diagram, analyse the impact on US economy due to the removal of US crude oil export ban Question 2 Bank of England holds rates steady but warns of a slower economic recoveryThe Bank of England on Thursday held interest rates steady and maintained its existing level of asset purchases, but warned it is anticipating a slower economic recovery from the coronavirus crisis.All members of the Monetary Policy Committee voted to keep the main lending rate at 0.1%, with the central bank having cut rates twice from 0.75% since the beginning of the pandemic.The committee also voted unanimously against extending its bond-buying program, having announced an additional £100 billion ($131.4 billion) expansion in June which took the total value of the Asset Purchase Facility to £745 billion.However, the central bank said it does not expect the U.K. economy to exceed its pre-coronavirus levels until the end of 2021. It had previously projected that GDP (gross domestic product) may return to 2019 fourth-quarter size in the second half of next year.

a) Explain how the Bank of England would go about cutting the targeted interest rate using open market operations. With the help of a money market diagram explain how this will impact the money market. b) How will the outcome of United Kingdom’s real GDP based on policy in (a) will impact money demand? Support your answer with money market diagram.Question 3Malaysia's economy shrinks 17.1pct on Covid-19 impactKUALA LUMPUR: The Malaysian economy contracted 17.1 per cent in the second quarter of 2020 from a 0.7 per cent growth in the first quarter. Bank Negara Malaysia said the decline reflected the unprecedented impact of the stringent containment measures to control the Covid-19 pandemic globally and domestically. "In Malaysia, the nationwide Movement Control Order (MCO) included various measures that restricted production and consumption activities. "This resulted in demand and supply shocks that emanated not only from significantly weak external demand conditions but also production constraints in many economic sectors," the central bank said today.Additionally, Bank Negara said there was a marked decline in tourism activity due to international border closures and restricted interstate travel.On the supply side, most economic sectors registered negative growth, while most expenditure components declined.Sourcea)Discuss the impact of Covid-19 on Malaysia’s Aggregate Supply. Begin the analysis using AD-AS model with assumption that Malaysia economy is at full employment.b)Explain the types of unemployment that Malaysians will suffer due to the economy’s outcome in (a)