Recessions and the electoral blame game

Assignment Help Business Economics
Reference no: EM13996829

Recessions and the Electoral Blame Game

As a result of the recession that began in 2007 and continued into 2009, the unemployment rate rose to as high as 10 percent. By the time of the congressional elections of 2010, the economic recovery was under way, but the unemployment rate was still around 9.6 percent. The Republicans saw this as evidence that the Democrats’ economic policies had failed to deal with the lasting effects of the recession. They, in fact, blamed the lasting high unemployment on the policies of the Democrats and President Barack Obama. The Democrats and President Obama pointed to increasing real gross domestic product (GDP) as evidence that the economy was fundamentally sound and was no longer in a recession. Both parties could not be right—either the economy had entered a period of expansion and the policies of the Democrats were working and they should get credit for it (whether deserved or not), or had not and had in fact contributed to continuing high unemployment.

(A) Why do you suppose that one party can at the same time be blamed for not really ending a recession and itself take credit for ending a recession?

Reference no: EM13996829

Questions Cloud

Exchange rate to rise-ceteris paribus : Say that the exchange rate between the U.S. dollar and the Melnik bop is expressed in terms of bops per dollar. All of the following will cause this exchange rate to rise, ceteris paribus, except for:
Demand curve-what is profit-maximizing level of output : A monopoly faces an inverse demand curve, p(y) = 100 - 2y, and has constant marginal costs of 20. What is its profit-maximizing level of output? What is the socially optimal price of this firm? What is the deadweight loss due to the monopolistic beha..
What level of output will maximize peters profits : Peter Morgan sells pigeon pies from a pushcart in Central Park. Morgan is the only supplier of this delicacy in Central Park. His costs are zero due to the abundant supplies of raw materials available in the park. What level of output will maximize P..
Islam and supply-side economics : Supply-side economics has a long history, dating back to at least the fourteenth century. The greatest of medieval historians, Abu Zayd Abd-ar-Rahman Ibn Khaldun (1332–1406), included in his book, The Muqaddimah (1377), an Islamic view of supply-side..
Recessions and the electoral blame game : As a result of the recession that began in 2007 and continued into 2009, the unemployment rate rose to as high as 10 percent. By the time of the congressional elections of 2010, the economic recovery was under way, but the unemployment rate was still..
What will happen to the long-run aggregate supply curve : In 2010, the Obama administration implemented more restrictive regulation of oil exploration and production in the areas just offshore of the United States. The cost of drilling offshore oil wells is likely to increase significantly as a result. What..
Most important for the public to know about each branch : There are three primary branches of government in the United States. For each of the three branches, describe how members of the branch are determined and the general functions and powers of the branch. What do you believe is most important for the p..
Colleges allocated seats in courses on the basis of price : Would it be fair if colleges allocated seats in courses on the basis of price? In other words, let students bid for available seats in classes, rather than using a first-come, first-served system based on some sort of administrative procedure. Explai..
Unexpected frost weather in the sunflower area : Suppose there is unexpected frost weather in the sunflower area and government decided to purchase some sunflower. How will the new supply-demand graph for sunflower look like? What will happen to the price and the quantity sold?

Reviews

Write a Review

Business Economics Questions & Answers

  What is average money balance during the day period

Suppose that you never carry cash. Your pay check of $1,000 per month is deposited directly into your checking account, and you spend your money at a constant rate so that at the end of each month your checking account balance is. What is your averag..

  Why do farmers landowners have an incentive

Why do farmers landowners have an incentive to maintain the productivity of their land over time.

  Determine the firm value of operations

Kinkead Inc. forecasts that its free cash flow in the coming year, i.e., at t = 1, will be -$10 million, but its FCF at t = 2 will be $20 million. After Year 2, FCF is expected to grow at a constant rate of 4% forever. If the weighted average cost..

  Consumer budget constraints when young

Write down the consumer budget constraints when young also when old the consumer lifetime budget constraint the government budget constraint also the market clearing conditions.

  What is the annual worth of this investment

Eddie’s Precision Machine Shop is insured for $700,000. The present yearly insurance premium is $1.00 per $100 of coverage. A sprinkler system with an estimated life of 20 years and no salvage value can be installed for $50,000. Annual maintenance co..

  Senior citizens deserve income that will allow them to live

"Senior citizens deserve an income that will allow them to live in comfort for their remaining years."

  An accommodating policy response to a supply shock

An accommodating policy response to a supply shock

  Human judgment is just too flawed to apply

Andrew thinks the government should, most of the time, butt out. He thinks the economy can work things out best on its own and that human judgment is just too flawed to apply to such important things as people's incomes and spending ability. Andrew w..

  Qwhile the primary focus of the final project should be on

q.while the primary focus of the final project should be on your firms worldwide operations integrate information on

  Dynamic tensions manifest themselves in different ways

Do dynamic tensions manifest themselves in different ways depending whether the friendships are face-to-face or online? Are these tensions resolved differently in face-to-face and in social networking interactions?

  The operating cost of a broiler

The operating cost of a broiler is $20,000 per year for years 1 and 2 and then it increases by 6% per year through year 10. What is the equivalent uniform cost of the broiler (years 1-10) at an interest rate of 9% per year

  Q1 if consumption increases by 12 billion when real

q1. if consumption increases by 12 billion when real disposable income increases by 15 billion what is the value of the

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