Pessimism about an expected economic expansion

Assignment Help Business Economics

Reference no: EM13833380

Give an example of an event or incident that has taken place in the U.S. economy which has a major economic impact--be specific, e.g., 9/11 attack, natural disaster, rise or fall in oil prices due to OPEC policies, consumer optimism or pessimism about an expected economic expansion or downturn, increase in government spending on healthcare, tightening of the legal and institutional environment, and so forth. What effect would this event have on AD or AS, other things being constant? What would be the resulting effect on equilibrium price level? Explain. What will be the effect of the different tools of fiscal policy to stabilize the economy? Give an example of a built-in stabilizer and explain how it would work to reduce this rise or fall in the level of AD.

Reference no: EM13833380

Questions Cloud

If the fed intends to decrease the money supply : If the Fed intends to decrease the money supply, what tools can be used? Briefly explain how each tool should be implemented.

Mislearning causes much undesirable behavior : Mislearning causes much undesirable behavior

Suppose a network has been developed for a project : Suppose a network has been developed for a project where T=38 months and \alpha {^2}=7 months. Find the probability that the project will be completed within 40 months, using (a) the standard normal tables and (b) a spreadsheet.

Topics about scarcity-production and demand versus supply : Topics about scarcity, production and demand versus supply. What are acceptable levels of production in using raw materials such as natural resources? At what level does supply meet demand? How does an economic set the equilibrium price? At what poin..

Pessimism about an expected economic expansion : Give an example of an event or incident that has taken place in the U.S. economy which has a major economic impact--be specific, e.g., 9/11 attack, natural disaster, rise or fall in oil prices due to OPEC policies, consumer optimism or pessimism abou..

Explains what the facility currently is the future plan : The audit (Part A) explains what the facility currently is; the future plan (Part B) explains what the facility could develop into. Take at least a 5-10 year ‘into the future' viewpoint.

Prepare a memo for the client files describing the result : Evaluate the IRS' s position regarding the treatment of Tern Corporation as a personal service corporation, and prepare a memo for the client files describing the results of your research.

Complete the balance sheet : Complete the cells on the balance sheet and income statement using the following information:

Net exports-government taxes minus transfers-personal saving : The following is information from the national income accounts for a hypothetical country: Net exports? Government taxes minus transfers? Disposable personal income? Personal saving?

User Account

All Pages