Difference between recessionary gap and inflationary gap

Assignment Help Macroeconomics
Reference no: EM131438994

1. Does it appear to you that the US economy is likely to be relatively stable or relatively unstable? Which component of spending is most (least) likely to contribute to overall instability: consumption, investment, government, exports, or imports?

2. Explain the difference between recessionary gap and inflationary gap. Discuss how a "conservative" and a "liberal" might differ in the types of policies they advocate to counteract a recessionary gap.

Reference no: EM131438994

Questions Cloud

Discuss the effects on the stability of employment : Play the Social Security Game (Links to an external site.) to solve the Social Security problem. Detail your choices, noting the why's of your choices and also discuss the effects on the stability of employment, inflation, and GDP as a result.at l..
What are the advantages and disadvantages of mediation : What are the advantages and disadvantages of mediation? Is it likely to be successful? Is it likely to make the parties more or less hostile toward one another? How do the costs in terms of time and money compare with litigation?
How effectively they can be used to cope with the event : Which of the following cultural adaptations might produce a culture that would be described as a "mosaic"?The segregation practiced in areas of the United States until the 1960s as well as apartheid, that was policy in South Africa until recent tim..
What is the elasticity of supply : The equation for a supply curve is . What is the elasticity of supply as price rises from 3 to 4? What is the elasticity of supply as the price rises from 7 to 8? Would you expect these answers to be the same? Why/ why not? (Taylor & Greenlaw, 201..
Difference between recessionary gap and inflationary gap : Explain the difference between recessionary gap and inflationary gap. Discuss how a "conservative" and a "liberal" might differ in the types of policies they advocate to counteract a recessionary gap
How do you determine if a utility function is homothetic : How do you determine if a utility function is homothetic? I understand that definitions say that if the MRS depends only on the ratio of the two goods, then the utility function is homothetic. Yet I have trouble understanding how to actually apply..
What is the market clearing price : Assume that Lexar and Corsair act as perfectly competitive firms and that Chinesegoods flow freely into the United States. Draw the aggregate (e.g. including all firms)supply curve for this industry in the space below. What is the market clearing ..
Persuasion to persuade consumers about their brands : This concept relates to instrumental conditioning and the fact that each time a behavior occurs it is reinforced. When it comes to purchases that are high involvement purchases, marketers should use the ____ to persuasion to persuade consumers about ..
Resulting full economic price : Suppose market demand and supply are given by Qd = 100-2P and Qs =5+3P. If a price ceiling of $15 is imposed, what will be the resulting full economic price?

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  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

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

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