Why are these economists-market participants so optimistic

Assignment Help Business Economics

Reference no: EM131424728

The Wall Street Journal recession probability tracker shows the likelihood that the US will enter a recession in the coming 12 month between 0 to 75 percent, the widest range since the Great Recession, despite the average likelihood trending downward. The stock market has also reached record highs (by some measures). (A) Why are these economists and market participants so optimistic? Are they looking at the correct economic indicators? (B) Using concepts such as Okun's Law and aggregate demand (IS-LM Model), explain what the government could do to prevent a potential recession, should the outlier be correct (as they were with the Great Recession!).

Reference no: EM131424728

Questions Cloud

Calculate total future compound amount of IRA accumulation : A young graduate engineer wants to know the equivalent future worth if she invests a uniform series amount of $5, 500 each year for the next 35 years in an individual retirement account (IRA). Assuming a 796 per year rate of return, she wants to calc..

Describes how this will affect the market for houses : Which of the graphs above represents the situation described for all cases below (a to e): e.g. Suppose the price of lumber falls dramatically. Which panel best describes how this will affect the market for houses?

Market effects of a tax : Market Effects of a Tax. Consider the market for fish. Use a demand and supply graph to predict the effect of a tax paid by fish producers of $1 per pound of fish. Use a demand and supply graph to predict the market effect of the tax.

Each of the five competitive forces : What is the nature and strength (weak, medium, strong) of each of the five competitive forces (substitute products, buyers, new entrants, suppliers, and the rivalry among sellers in the industry.

Why are these economists-market participants so optimistic : The Wall Street Journal recession probability tracker shows the likelihood that the US will enter a recession in the coming 12 month between 0 to 75 percent, the widest range since the Great Recession, despite the average likelihood trending downward..

Calculate the unknown present worth : Referencing the Relations for Discrete Cash Flows with End of Period Compounding posted as a guide, and given: a geometric gradient value, g = 5%, an initial uniform series value A1 = $5,000, an interest rate, J=7% per year, and a time period, n=5 ye..

Economists and market participants so optimistic : The Wall Street Journal recession probability tracker shows the likelihood that the US will enter a recession in the coming 12 month between 0 to 75 percent, the widest range since the Great Recession, despite the average likelihood trending downward..

What incidence would fall on? consumers : Green et al.? (2005) estimate that the demand elasticity is minus−0.47 and the? long-run supply elasticity is 12.0 for almonds. The corresponding elasticities are minus−0.68 and 0.73 for cotton and minus−0.26 and 0.64 for processing tomatoes. if the ..

Consider a linear supply curve that passes through origin : Consider a linear supply curve that passes through the origin: Qs = bP. Prove that PES =1 at every point along this relationship. Hint: PES = (P/Q)(1/slope).

User Account

All Pages