Aggregate demand is insufficient to ensure full employment

Assignment Help Business Economics
Reference no: EM13984214

Those who desire that policymakers stabilize the economy would advocate which of the following when aggregate demand is insufficient to ensure full employment?

A. Do nothing and let markets correct themselves.

B. increase government expenditures

C. increase taxes

D. decrease the money supply

Reference no: EM13984214

Questions Cloud

The long-run aggregate supply curve : The long-run aggregate supply curve
If policymakers increase aggregate demand-the price level : If policymakers increase aggregate demand, the price level
In the long run-an increase in the money supply : In the long run, an increase in the money supply
Raise the incentive for households to save : Which of the following raise the incentive for households to save?
Aggregate demand is insufficient to ensure full employment : Those who desire that policymakers stabilize the economy would advocate which of the following when aggregate demand is insufficient to ensure full employment?
About soundness of the financial sector : What do you think about soundness of the financial sector in the country of Ukraine? What is the structure of the banking sector? How large? State owned share? Foreign ownership? Is it well regulated?
Types of unemployment : Identify and describe four causes (i.e., types of unemployment). Are some workers more likely than others to be laid off and have a harder time finding another satisfactory job? Explain.
Against these arguments for trade restrictions : Now assume you are an astute student of economics (not a hard assumption, we hope). Although all the arguments for restricting trade have their shortcomings, name the two or three arguments that seem to make the most economic sense to you. For each, ..
The increase in the number of people employed : Between January 2010 and January 2013, U.S. employment increased by 4.9 million workers, but the number of unemployed workers declined by only 2.7 million. How are these numbers consistent with each other? Why might one expect a reduction in the numb..

Reviews

Write a Review

Business Economics Questions & Answers

  Manufacturer has paid an engineering firm

A manufacturer has paid an engineering firm $200,000 to design a new plant, and it will cost another $2 million to build the plant. In the meantime, however, the manufacturer has learned of a foreign company that offers to build an equivalent plant f..

  Find the value of all the intrest paid to ken

Find the value of X such that the loan is fully repaid with the last payment. b) What is the dollar amount of each of the five payments ? c) Find the value of all the intrest paid to ken ?

  Calculate the equilibrium price in the market

A perfectly competitive market is described by the demand Q = 70 - 2p and the supply curve Q =5p - 20. A firm in the market has a total cost equation of C = 16+ Q^2 + 2Q. Calculate the equilibrium price in the market.

  Why china score is relatively low compared to the u.s.

Does this seem counter-intuitive to you? Be sure to include an explanation of why China score is relatively low compared to the U.S.

  Last payment and fourth from the last payment

Mr. Carloan is paying off a car loan by paying $400 at the end of each month. The nominal interest rate is 12% per year. How much interest is paid in each of the following?  Last payment. Fourth from the last payment

  In what way is fiscal easing in japan relevant here

At the moment, the market is completely ignoring things like record US trade deficits and the widening current account deficit. It is also largely ignoring the possibility of Federal Reserve rate cuts. Traders and investors are instead focusing only ..

  How does this shift affect investment and real interest rate

Suppose that an increase in consumer confidence raises consumer expectations of future incomes and thus amount y want to consume today this might be interpreted as an upward shift in production function how does this shift affect investment and r..

  What combination of t and m will you choose

What combination of T and M will you choose? Suppose that the price of day trip rises to $80. How will this change your decision making?

  Passage of the affordable care act

With the passage of the Affordable Care Act the U.S. government requires that everyone have some form of health insurance. One of the provisions of the law is that firms with more than 50 full-time workers must provide health insurance to those worke..

  All the points along the demand curve share same elasticity

In case of a Giffen good, income effect dominates substitution effect. All the points along the demand curve share the same elasticity. The marginal cost curve passes through the minimum point of the average fixed cost curve.

  Elucidate what is meant by double coincidence of wants

Elucidate what is meant by "double coincidence of wants, and why it poses an impediment to efficient trade in a barter economy.

  Assume the firms are both located in middle of the street

Assume 2 firms on a street of length 1, with zero costs of production. Consumers are uniformly distributed on this street, desire only one unit of the good, and value the good at V = 100. To get to the firms and purchase the good, consumers need to p..

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