Monetary policy-fiscal policy and supply-side policy

Assignment Help Business Economics
Reference no: EM13977085

Suppose the US economy is in a recession and in our personal opinion, need to select a single strategy from this list. (monetary policy, fiscal policy, supply-side policy, or laissez faire policy) Which one is best to bring the economy back to full employment?

Explain why that one particular policy was chosen, over the other three, including economic rationales?

Reference no: EM13977085

Questions Cloud

Is an import tax on industrial goods : A small country imports industrial goods and exports agricultural goods. Both industry and agricultural are perfectly competitive. A new minimum wage law raises wages in industry but not in agriculture. However, all workers displaced from industry as..
How much total utility does the consumer receive : Of the total change in the quantity demanded of X, how much is due to the substitution effect and how much is due to the income effect?
Why should money demand be dependant on nominal rates : We know that investment spending depends on real interest rates, yet the demand for money is dependant on nominal, not real, interest rates. Why should money demand be dependant on nominal rates?
Problem regarding the indian context : What is bench-marking in mutual funds, in the Indian context?
Monetary policy-fiscal policy and supply-side policy : Suppose the US economy is in a recession and in our personal opinion, need to select a single strategy from this list. (monetary policy, fiscal policy, supply-side policy, or laissez faire policy) Which one is best to bring the economy back to full e..
Calculate the price and output for a monopoly : A market has linear market MC (might be supply) and demand curves. No one will buy the good if the price is above $200 and the firm will not produce the good if the price is below $20. Calculate the consumer surplus and producer surplus if this is a ..
Consider the effect of prices on everything doubling : Please consider the effect of prices on everything doubling. Suppose all prices doubled while you slept. A soft drink that sold for a dollar now sells for two dollars; a car that sold for $20,000 now sells for $40,000. The price of labor doubled as w..
What is the current bond price : Grohl Co. issued 11-year bonds a year ago at a coupon rate of 6.9 percent. The bonds make semiannual payments. If the YTM on these bonds is 7.4 percent, what is the current bond price?
What is the equation for intertemporal budget constraint : Abdi’s incomes in periods 1 and 2 are $200 and $100 respectively. His preferences for consumption in the two periods are perfect complement. That is, for each dollar he spends in one period, he wants to spend the same amount in other period. What is ..

Reviews

Write a Review

Business Economics Questions & Answers

  What is the effect if you obtained cash from the ATM

Discuss and describe the effect you have on this process when you pay for your late-night pizza delivery, or your other take-out food choices, using your bank debit or credit card. What is the effect if you obtained cash from the ATM to pay for this ..

  Find hourly wage rate of homes economy

Find hourly wage rate of Home's economy.

  Methods of simultaneous equation models

Discuss examples from economic theory that would be estimated using the methods of simultaneous equation models

  What is the amount of his unexpected return-portfolio beta

Phil realized a total return of 13.2 percent which is less than his expected return of 14.4 percent. What is the amount of his unexpected return? A portfolio is comprised of two stocks. Stock A comprises 65 percent of the portfolio and has a beta of ..

  To avoid the problem of double marginalization

To avoid the problem of double marginalization

  What is anticipatory repudiation

What is anticipatory repudiation? Why is it important to be able to identify this type of a breach? How does it benefit the non-breaching party?

  Payback period method of investment

Illustrate what is payback period method of investment. Explain how it can be applied to choose among investment project.

  What happens to the equilibrium prince and quantity in each

What happens to the equilibrium prince and quantity in each markets when the government reduces the supply ofgoods with elastic demand.

  Describe the profit maximizing input use

The market demand function is Q=80-p. Describe the profit maximizing input use, the output price, and the monopolist's profit.

  The market for tennis shoes has a horizontal supply curve

The market for tennis shoes has a horizontal supply curve and a linear, downward-sloping demand curve. Currently the government imposes a tax of t on every pair of tennis shoes sold and does not tax other goods. The government is considering a plan t..

  Illustrate what relationship must hold between x and p

Illustrate what relationship must hold between x and p so that A second order stochastically dominates B.

  Describes the increase in the money supply

Your book describes the increase in the money supply as being analogous to giving people more money. If the output of goods and services is not growing at a similar rate, inflation will eventually occur. According to PPP Theory, what will happen to t..

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