Different tools of fiscal policy to stabilize the economy

Assignment Help Business Management
Reference no: EM131177255

1) What happens if you make a bet and lose but then someone pays you a large amount of the money you lost? Would you take on a riskier bet?

The government bailed out the banks and some big businesses and tried to keep the economy from falling apart by borrowing money and now they face a loss of credit. In fact some countries are facing default. Who bails out the one doing the bailing out?

2) Give an example of an event or incident that has taken place in the U.S. economy which has a major economic impact--be specific, e.g., 9/11 attack, natural disaster, rise or fall in oil prices due to OPEC policies, consumer optimism or pessimism about an expected economic expansion or downturn, increase in government spending on healthcare, tightening of the legal and institutional environment, and so forth. What effect would this event have on AD or AS, other things being constant? What would be the resulting effect on equilibrium price level? Explain. What will be the effect of the different tools of fiscal policy to stabilize the economy? Give an example of a built-in stabilizer and explain how it would work to reduce this rise or fall in the level of AD.

Reference no: EM131177255

Questions Cloud

Provide a rationale for the each of the goals selected : Provide a rationale for the each of the goals selected. Rank each of the goals on a scale in terms of their importance or potential impact, with 5 being the highest importance or impact.
Fortran subprogram which utilizes the bisection method : Write a FORTRAN subprogram which utilizes the bisection method to carry out this search efficiently. How many times does your routine compare X with an entry of TABLE if TABLE has n entries?
Challenges a non-profit in the states : Topic What are the challenges a non-profit in the States can encounter during an recession?
How might employee trust in hr be rebuilt when it is low : How might employee trust in HR be rebuilt when it is low or does not exist? How might you effectively communicate new HRM practices to gain employee understanding and acceptance?
Different tools of fiscal policy to stabilize the economy : What would be the resulting effect on equilibrium price level? Explain. What will be the effect of the different tools of fiscal policy to stabilize the economy? Give an example of a built-in stabilizer and explain how it would work to reduce this..
Find the smallest positive root of each of the following : Find the smallest positive root of each of the following equations to maximum precision on your computer using Algorithms 3.1, 3.3, 3.4 and 3.5. Compare your results, the number of iterations required and the accuracy attained.
Provide an example of an organization in south africia : Provide an example of an organization in South Africia that demonstrates your argument of key strategic influencers for that region and explain why.
Derive the laplace transform : Derive the Laplace transform and the inverse Laplace transform - Evaluate the integral
Calculate the payback period for both products : Gator Lover's Ice Cream is a small ice cream manufacturer.  They want to either open a new store (Project A) or buy a new machine to mass produce ice cream to sell to supermarkets (Project B).  Calculate the payback period for both products.  Then..

Reviews

Write a Review

Business Management Questions & Answers

  Priorities of both company

Help me to rank the ongoing issues in Coca Cola and Pepsi Co. in terms of their priorities of both company? And anybody who can help me to evaluate the Coca Cola and Pepsi Co. CSR in India?

  Understand the organizational purpose of the business

Understand the organizational purpose of the business and  the nature of the national environment in which business operate.

  Health care reform and strategic management

Are we as effective at acknowledging the end of life as we are at trying to keep everyone alive as long as possible without considering quality of life or recovery potential?

  Discuss whether sally has a legal contract

Sally was elated that she received the contract but as soon as she realized the contract price, she was disappointed. Discuss whether Sally has a legal contract and illustrate what is her recourse?

  Managing information and technology

If you've ever lived in a city, you know that getting around can be a challenge. Traffic jams, overflowing parking lots, crammed subway cars, drivers who plow through puddles that spray water on pedestrians-all of these may be enough to make you p..

  Company owns factory machinery with total cost

The company owns factory machinery with a total cost of $51,000 and accumulated depreciation of $35,300. Included in factory machinery is one machine that cost $7,000 and has accumulated depreciation of $4,200. This machine is being held for resal..

  What are the benefits of using project software

How does the development of project software compare to other methods of scheduling. What are the benefits of using project software? What are the downfalls of using technology in this manner?

  Explain what values or assumptions do the laws

Explain What values or assumptions do the laws of these countries make about the employment relationship?

  Create an authentic-looking batman comic

Max plots a new Batman adventure as well as carefully and skilfully imitates the art of DC Comics to create an authentic-looking Batman comic. Max isn't affiliated with the owners of the copyright to Batman

  Create a service process map

Research the service process for a selected company. Create a service process map. Use flow charts and provide a key.

  Social power1 in order to access power in organizations you

social power1. in order to access power in organizations you must possess knowledge. there are two types of knowledge

  Different suppliers of a critical material

Given the following historical data on 2 different suppliers of a critical material that your company requires, which of the two suppliers (supplier 1 OR supplier 2) will minimize your required safety stock? Show and describe your analysis!

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