Active policy approach be more politically popular

Assignment Help Business Economics
Reference no: EM135995

Q1. Why do proponents of active policy recommend government intervention to close an expansionary gap? Briefly discuss.

Q2. Why might an active policy approach be more politically popular than a passive approach, especially during a recession?

Q3. Some economists argue that only unanticipated increases in the money supply can affect real GDP. Explain why this may be the case.

Q4. What is the policy credibility and how is it relevant to the problem of reducing high inflation? How is credibility related to the time inconsistency problem?

 

 

Reference no: EM135995

Questions Cloud

Two alternative recreation projects : A county is considering using a piece of park land for one of two alternative recreation projects.
Hiro nakamura is ceo of the cola king bottling company : Hiro Nakamura is CEO of the Cola King Bottling Company, a small regional producer operating in the Pacific Northwest. Nakamura is considering two alternative expansion proposals
Find the equilibrium values of the real interest rate : Find the equilibrium values of the real interest rate, consumption, investment, and the price level.
Wacc break point that is associated with retained earnings : If MMM's capital structure consists of 25% debt and 75% equity, stated in total funds, what is the WACC break point that is associated with retained earnings
Active policy approach be more politically popular : Some economists argue that only unanticipated increases in the money supply can affect real GDP.
Differences between depository and nondepository : discuss the major types of financial intermediaries in the U.S. and illustrate the differences in the way assets and liabilities are recorded on their balance sheets
Incumbent monopoly in a market : Suppose that the supply curve of healthcare services is perfectly inelastic. Analyze the impact of an increase in consumer.
Major league baseball : In a typical day the store sells some of each type of cola, which suggests that Major League Baseball has adopted FOA because it fears that regular binding arbitration is addictive.
Event of a rejection : Proposals for modifications of the law are formulated by committees. Under the closed rule, the legislature may either accept or reject a proposed modification, but may not propose an alternative.

Reviews

Write a Review

 

Business Economics Questions & Answers

  The largest loan that the bank can make

The largest loan that the bank can make on the basis of the new deposit. If the bank chooses to hold reserves of $3,000 on the new deposit, what are the excess reserves on the deposit.

  Explain an economy is initially in equilibrium

Explain an economy is initially in equilibrium at the natural level. The central bank increases the money supply.

  What if the pollution invades bakers home

What if the pollution invades Baker's home and harms her health

  Business decision is profitable

If one defines incremental cost as the change in total cost resulting from a decision, and incremental revenue as the change in total revenue resulting from a decision, any business decision is profitable.

  People believe the difficulties aisian economies

Why did people believe the difficulties Aisian economies were expericing in 1997-1998

  Elucidate the maximize profits

Suppose at the current level of labor used, the MRP = $100 and the MFC = $50. Elucidate the maximize profits

  Quantity increase or decrease depends on demand

The equilibrium quantity increase or decrease depends on Demand

  Factors determine the demand for british pounds

Why all the balance of payments accounts be in surplus. What factors determine the demand for British pounds in foreign exchange markets.

  Increase profits by practicing price discrimination

A pharmaceutical firm faces monthly demands in the U.S. and Mexican markets for one of its patented drugs.

  The industry is confronted with government regulations

Assume that the industry wants to expand and has to make some long-term capital budgeting decisions. Now the industry is confronted with government regulations to oversee the merger.

  President of an emerging country trying to reduce imports

Imagine that you were the president of an emerging country that is trying to reduce the number of its imports

  Resources market and the product market

Distinguish between the resources market and the product market in the circular flow model.

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