What category can increase to try to stabilize the economy

Assignment Help Business Economics
Reference no: EM13898811

Using the Expenditure approach, GDP can be divided into 4 categories, Consumption, Investment, Government, and Net Exports. In the United States, Consumption makes up about 70% of the total. When the economy of the country goes into recession, the Consumption category decreases and the Investment category typically also decreases and exports may also be affected. Given those issues, what category can increase to try to stabilize the economy? Explain!

Reference no: EM13898811

Questions Cloud

Using fundamental equations from general monetary : Using the fundamental equations from the general monetary approach, describe how each of the following will affect the home and foreign price level, real money balances, and the exchange rate, EH/F . Also, state whether the home currency appreciates ..
What principles support the financial reporting model? : What principles support the financial reporting model?
Represents demand for widgets : The following represents demand for widgets: QD=680-9P+0.006M-4PR, where P is the price of widgets, M is income and PR is the price of a related good, the wodget. Supply of the widgets is determined by Qs=30+3P.
Summarize the appellate court decision : Summarize the appellate court's decision in the Salinger v. Random House case, probably using the Wikipedia summary of the opinion. Make sure you cite your sources and do not plagiarize. Comment on what the trial or lower court had decided and h..
What category can increase to try to stabilize the economy : Using the Expenditure approach, GDP can be divided into 4 categories, Consumption, Investment, Government, and Net Exports. In the United States, Consumption makes up about 70% of the total. When the economy of the country goes into recession, the Co..
Can you precisely show the calculus part of ramsey : Can you precisely show the calculus part of ramsey, olg, solow, endogenous growth theories in a very advanced level? With omitting unnecessary interpretations?
What are efficiency-producer surplus-worker surplus : What are efficiency, producer surplus, worker surplus, and total gains from trade? Why would we expect regional wage levels to converge? What happens to total gains from trade as regional wages converge? How do payroll taxes affect labor markets (i.e..
Description of other types of assurance and non-assurance : Description of other types of assurance and non-assurance services offered by accounting professionals
Account for profits being earned by the pharmacy : Integrating Problem Samantha Roberts has a job as a pharmacist earning $ 30,000 per year, and she is deciding whether to take another job as the manager of another pharmacy for $ 40,000 per year or to purchase a pharmacy that generates a revenue of $..

Reviews

Write a Review

Business Economics Questions & Answers

  Calculate the range-variance and standard deviation

Calculate the range, variance, and standard deviation for this data series. Which measure does the best job of describing the dispersion in this variable.

  Individual buying a car would prefer a free gps

Elucidate how an individual buying a car would prefer a free GPS system to a free leather seat upgrade.

  Optimal consumption bundle before any price change

Bob’s utility function is given by . 0.5 0.5 U = X Y Bob earns $400. The price of X is $2 and the price of Y is $4. a. What is Bob’s optimal consumption bundle before any price change? b. Suppose the price of X increases to $4. What does Bob consume ..

  Illustrate graphically the effects of both policies

Illustrate graphically the effects of both policies on the market for cigarettes. In your discussion answer the following: Are these two programs at odds with the goal of reducing cigarette consumption?

  Q1 the average variable cost per acre planted with wheat

q1. the average variable cost per acre planted with wheat was 107 per acres. assuming a yield of 50 bushels per acre

  Increase and decrease the debt ratio under financial crisis

The financial crisis that occurred 2008-2010 amounted to a increased debt ratio in many countries. Write the debt ratio formula. Discuss in detail what factors that tend to increase or decrease the debt ratio under a financial crisis.

  Revenues do businesses receive in the product marketplace

Elucidate how much in revenues do businesses receive in the product marketplace.

  High equipment rental fee keeps generating big profits

Snow peak Ski Resort offers a price for a lift ticket that is barely over its marginal cost, but the high equipment rental fee keeps generating big profits. Which pricing strategy is the management using?

  Pool of utilized textbooks grows further during second yr

Assume that the pool of utilized textbooks grows further during the second year of the latest edition

  Firm ic acutely aware of production and marketing decisions

In oligopoly, each firm is acutely aware of the production and marketing decisions of all competitors and carefully considers the potential competitive reactions in all decisions. Discuss whether firms in other market structures consider the potentia..

  Calculate the mrs or the marginal rate of substitution

Calculate the MRS or the marginal rate of substitution between X and Y. How much X and Y will Sam buy to maximize his utility given his budget constraint and the prices of X and Y?

  Mundell-fleming model

Use the Mundell-Fleming Model to predict what happens to aggregate income y, the exchange rate e, and the trade balance NX, under both floating and fixed exchange rates in response to each of the following shocks:

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