Congress do to stabilize aggregate demand

Assignment Help Macroeconomics
Reference no: EM131160090

Problem: Suppose that survey measures of consumer confidence indicate a wave of pessimism is sweeping the country. If policymakers do nothing, what will happen to aggregate demand? What should the Fed do if it wants to stabilize aggregate demand? If the Fed does nothing, what might Congress do to stabilize aggregate demand?

Reference no: EM131160090

Questions Cloud

The concern about private prisons : The concern about private prisons is that?
Distinguish between the benefits-received : Distinguish between the benefits-received and the ability-to-pay principles of taxation. Which philosophy is more evident in our present tax structure? Justify your answer. To which principle of taxation do you subscribe? Why?
Long-run trade-off between inflation and unemployment : Problem: Please list, discuss and examples of types of unemployment. Please discuss the relationship between inflation and unemployment. Please discuss the short and long-run trade-off between inflation and unemployment.
What is the reorder policy and cycle time : Ross White’s machine shop uses 2500 brackets during the course of a year, and this usage is relatively constant throughout the year. These brackets are purchased from a supplier 100 miles away for $15 each, and the lead time is 2 days. Develop a tota..
Congress do to stabilize aggregate demand : Problem: Suppose that survey measures of consumer confidence indicate a wave of pessimism is sweeping the country. If policymakers do nothing, what will happen to aggregate demand? What should the Fed do if it wants to stabilize aggregate demand? ..
What political risks does nokia face in asia : Consider and explain Nokia's strategy to mitigate risks and improve their relationships with China, when referring to the "Internet Exercise: Nokia in China", What political risks does Nokia face in Asia, particularly China
derive the equilibrium rate of technological change : Can an increase in ι make the South worse off? Explain the intuition for this result.
What is the significance of the shut-down price or point : Why does entry and exit of firms occur in the long run and not in the short run? Using appropriate diagrams, discuss the role or importance of exit and entry conditiontions in a perfectly competitive market? What is the significance of the shut-down ..
Recommendations for present scenario : Would need a 2 to 3 page essay on recommendations for present scenario for United states with 4.9 percent unemployment rate and 1.2 inflation rate.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Income tax and national insurance

(a) A shop manager's annual gross salary is £29,400. A bonus of 3½% of the monthly gross salary is earned and paid in October. Deductions from salary in October are Income Tax and National Insurance. National Insurance deduction in October is 6¾% ..

  What does it cost you to sleep through one of the 30 lecture

What does it cost you to sleep through one of the 30 lectures in a course for which you paid $2000 in tuition? Do students put more effort into courses for which they have to pay higher tuition to take the course? Explain.

  Expalin how many firms are in this industry

What is the equilibrium price of a box. Is this the long-run equilibrium price. Expalin how many firms are in this industry when it is in long-run equilibrium.

  Find infinitely repeated model between two firms

Consider the following infinitely repeated model between two firms. Each period, the firms earn profits of 10 if they successfully collude. If a firm deviates from the agreement, it earns 15 in the period in which it cheats. In each period that th..

  How to receive a cut of the social surplus

All stratified societies have groups of individuals that do not produce, but still receive a ‘cut' of the social surplus. How does Diamond (in his book) argue that these ‘privileged' individuals manage to convince productive members of society to ..

  Factors shifting expenditure function

Discuss how the aggregate expenditure function shifts in response to changes in each of time following variables:

  Evaluate factors involved in making decisions about pricing

From the e-Activity, if you were a manager in a tobacco company, analyze the elasticity of demand for tobacco products. Evaluate the factors involved in making decisions about pricing tobacco products indicating which would be the most influential..

  Sketch a domestic supply and demand diagrams for a product

Sketch a domestic supply and demand diagrams for a product in which the United States does not have a comparative advantage.

  What is the marginal propensity to save

Given the above information, what is the marginal propensity to consume? Show your work and provide the general formula for the MPC. Given the above information, what is the marginal propensity to save? Show your work and provide the general formul..

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  The idea that countries should produce and sell goods

The idea that countries should produce and sell goods that they produce most effectively and efficiently, and buy goods that other countries produce most effectively and efficiently, is known as.

  How was the producer profits affected

How were the procuder price paid and the consumer price paid affected? How was the producer profits affected?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd