Combat demand-deficient unemployment in recession

Assignment Help Business Economics

Reference no: EM131108272

The purpose of Keynesian fiscal policy to combat demand-deficient unemployment in a recession is to:

a. increase aggregate demand so that it intersects aggregate supply at the full employment level of output

b. decrease aggregate demand so that it intersects aggregate supply at the full employment level of output

c. increase the money supply by a constant 4% annual rate

d. decrease aggregate supply such that it intersects aggregate demand at the full employment level of output

Reference no: EM131108272

Questions Cloud

the love song of j alfred prufrock powerfully renders the : 'The Love Song of J. Alfred Prufrock' powerfully renders the crisis of the self that plagues the Modernist subject. Elaborate.

Suppose the marginal cost of production for company : Suppose the marginal cost of production for a company is $6 at its current production levels. Suppose the price elasticity of demand is constant at -2 between prices of $10 to $15, if current prices are $10, is the company pricing at the correct opti..

Change in the money supply as a result of the bond sale : The Federal Reserve sells $100 million bonds to Bank of America. Show the immediate change in the balance sheet of Bank of America due to this transaction. Consider the unusual scenario that the public holds no currency and that the banks typically l..

Calculate the npv, irr, and pi for both projects : Calculate the NPV, IRR, and PI for both projects. Rank the projects based on their NPVs, IRRs, and PIs. Do the rankings in part b agree or not? If not, why not?

Combat demand-deficient unemployment in recession : The purpose of Keynesian fiscal policy to combat demand-deficient unemployment in a recession is to:

Prepare the journal entry for compensation expense : Prepare the journal entry for compensation expense in 2009, 2012, and 2013 relative to the 40,000 SARs.

One disadvantage of skimming pricing policy for new products : One disadvantage of the skimming pricing policy for new products is that

Most unemployment is structural unemployment : Higher levels of education are associated with higher levels of structural unemployment. During a recession, cyclical unemployment rises but structural unemployment falls. Historically, technological change has created more jobs than it has made obso..

Why is it difficult to calculate the payback period : Why is it difficult to calculate the payback period for this project? Calculate the investment's net present value at each of the following discount rates: 0%, 5%, 10%, 15%, 20%, 25%, 30%, 35%. What does your answer to part b tell you about this proj..

User Account

All Pages