What type of fiscial policy should be enacted

Assignment Help Business Economics
Reference no: EM131172309

If unemployment is high and spending is sluggish, what type of fiscial policy should be enacted? How would this be enacted via taxes? Via government spending? What is the intended effect of this policy on aggregate demand?

Reference no: EM131172309

Questions Cloud

Steady state in the solow model implies that : Steady state in the Solow model implies that. The finance gap approach to aid utilizes. One reason that the Harrod-Domar model might fail is that. Growth (in steady state) in output per worker in the Solow model depends on
Make decisions that effect fixed and variable costs : Here is a chance for each of you to apply what we are learning to your real life. If you are a business owner, a manger in a business, a department head and there are lots of you in the class, you have a budget and you make decisions that effect fixe..
Which refrigerator has a lower cost : Sam is buying a refrigerator. He has two choices. A used one, at $475, should last him about three years. A new one, at $1250, would likely last eight years. Both have a scrap value of zero. The interest rate is 8 percent. (a) Which refrigerator has ..
What level of recycling is optimal : Delta Software earned $10 million this year. Suppose the growth rate of Delta's profits and the interest rate are both constant and Delta will be in business forever. Determine the value of Delta Software when: AMS recently instituted an in-house rec..
What type of fiscial policy should be enacted : If unemployment is high and spending is sluggish, what type of fiscial policy should be enacted? How would this be enacted via taxes? Via government spending? What is the intended effect of this policy on aggregate demand?
We had three phased increase in minimum wage : After years of no change, a few years ago, we had a three phased increase in minimum wage. Now we are discussing raising it further, to $10.10 an hour Are people that work for minimum wage better off after an increase in minimum wage? How will this i..
Demand elasticity and pricing strategies : Read the case study "Demand Elasticity and Procter & Gamble's Pricing Strategies" on page 47 of Economics for Managers. 3.Based on these facts, answer the following questions: a. Should Procter & Gamble use reward or loyalty programs to influence dem..
Thinking at the margin help richard increase his revenue : Richard runs a pizza delivery restaurant. List the three key economic questions, and give relative examples as they apply to Richard’s restaurant. Explain. How could thinking at the margin help Richard increase his revenue?
Pricing trial in order to estimate the elasticity of demand : Bellsouth Mobility (BM) ran a pricing trial in order to estimate the elasticity of demand for its services. The manager selected 4 states that were representative of its entire service area and increased prices by 5% to subscribers in those areas. Di..

Reviews

Write a Review

Business Economics Questions & Answers

  Explain is there nash equilibrium in this game

Elucidate what does either player have a dominant strategy. Explain is there Nash equilibrium in this game.

  Ompetitive market-consumer surplus and producer surplus

We have learned that under the perfect competitive market, consumer surplus and producer surplus are maximized. Therefore, market is the most efficient. Research and give an example of an incomplete market, discuss why it is inefficient, and illustra..

  Different production curves are presented

This focuses on the relationship between inputs and output. Different production curves are presented. But the intensity of current global competition often requires managers go beyond the traditional production curves.

  Federal reserve is not constrained by a fixed exchange rate

Because the Federal Reserve is not constrained by a fixed exchange rate, it is free to set monetary policy without concerns about the effect on the value of the dollar. How would the Fed’s actions during the 2007-2009 financial crisis have been conta..

  Hire many more employee than were available on the island

hire many more employee than were available on the island. As a result, prices for goods and services rose dramatically across the board.

  Expression for marginal revenue and marginal cost

Consider a hospital that has a demand curve given by P=180-4Q. Their total cost curve is given by TC=95+2Q. a) Please write down the expression for MR (marginal revenue) and MC (marginal cost). What will be the optimal P and Q? What will be their tot..

  Minimize the residual sum of squares

Given the bivariate sample regression model Yi = βˆ 0 + βˆ 1Xi + ˆei derive the OLS parameter estimates, i.e., derive the critical values of βˆ 0 and βˆ 1 that minimize the residual sum of squares (RSS).

  Define production possibility frontier

Define production possibility frontier; state the conditions require for its construction and show how it is constructed. State the basic properties.

  Do you think internet has helped create more competitive

These forecasts for the Internet creating “perfectly competitive” markets were based on the competitive model we have presented in this chapter. Do you think the Internet has helped create more competitive markets or less? Why?

  The best medium term prediction

Suppose the U.S. grows more slowly than Canada. The best medium term prediction is that the

  When the interest on a loan is below market

When the interest on a loan is below market, a lender must offer a discount to induce the investor market (secondary market) to purchase the loan. Assume a house is worth $100,000 if purchased with all cash. The existing 9% assumable loan has monthly..

  Government intervene in the delivery of health care

At what point should the government intervene in the delivery of health care (other than Medicare and Medicaid)? Should this intervention be at a state level or a federal level? Why? Provide at least two examples of when the government should become ..

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