Find the first action you would take as president as

Reference no: EM13396041

Assume that the country is in a period of high unemployment, interest rates are at almost zero, inflation is about 2% per year, and GDP growth is less than 2% per year. Suggest how fiscal and monetary policy can move those numbers to an acceptable level keeping inflation the same. What is the first action you would take as the president? As the chairman of the Fed? Why? What would be your subsequent steps? Make sure you include both the positive and negative effects of your actions and include the trade-offs or opportunity costs.

Include the following concepts in your discussion:

Demand and supply of money
Interest rates
The Phillips curve
Taxation
Government spending
Wages
Costs of inflation
The multiplier and the tax multiplier
The idea of tax rebates to stimulate the economy

Assume the country is in a budget deficit and carrying a very large debt. Discuss the dangers of a high debt to GDP ratio and a growing budget deficit. Would this change any policy.

Reference no: EM13396041

Questions Cloud

Do you think there are differences between the clone and a : in 2008 the food and drug administration fda approved food derived from cloned animals. in addition these products will

Suppose opportunity interest rate is 8 find the present : a generous university benefactor has agreed to donate a large amount of money for student scholarships. the money can

Mcdougal printing inc had sales totaling 40000000 in fiscal : 1.josh smith has compiled some of his personal financial data in order to determine his liquidity position. the data

Write down some of the examples of biotechnology that have : biotechnology is the use of a living thing or any part of a living thing to make a product or process that improves

Find the first action you would take as president as : assume that the country is in a period of high unemployment interest rates are at almost zero inflation is about 2

Discuss the market segmentation within that industry along : write a white paper on a company of your choice and discuss the market segmentation within that industry along with the

Explain why are enzymes critical to the function of cells : 1 why are enzymes critical to the function of cells? that is why not simply let chemical reaction occur without

Normarsquos cat food of shell knob ships cat food : normarsquos cat food of shell knob ships cat food throughout the country. norma has determined that through the

Assume that the us economy is in a state of decline : write a four to eight 4-8 page paper in which you1.create an environmental scan for the company indicating the most

User Account

All Pages