What are the main weaknesses of using demand-side policies, Microeconomics

Assignment Help:

What are the main weaknesses of using demand-side policies?

Trade-off issues

a) Growth and low unemployment often come with inflation

b) Government stimulatory policies might be come from deficit spending and thus enhanced debt

c) Growth may result in current account problems (HL; use MPM)

d) Growth and inflation, together with rising imports may lead to downward pressure on the exchange rate

 


Related Discussions:- What are the main weaknesses of using demand-side policies

Consumer choice involving risk.., why risk averse consumers pay premium for...

why risk averse consumers pay premium for insurance to convert an uncertain outcome to a certain one?

Discounting principle, The owner of a firm Mr. Rajneesh expects to make a p...

The owner of a firm Mr. Rajneesh expects to make a profit of Rs.5,50,000, Rs.6,50,000, Rs.7,50,000 and Rs.8,50,000 at the end of the 1st, 2nd, 3rd and 4th year respectively. Rajne

Average total cost, Average Total Cost (ATC): ATC is the total cost per uni...

Average Total Cost (ATC): ATC is the total cost per unit of output. ATC = TC/y = (TFC + TVC)/y = AFC +AVC ATC falls sharply at the beginning of the production process because

Monopsony, advantages and disadvantages

advantages and disadvantages

Health care, Suppose that doctors shift away from a fee-per-visit system an...

Suppose that doctors shift away from a fee-per-visit system and are instead paid set annual salaries. What effect will this have on the supply and demand situation for the health

Mixed economy, is south african economic system more allocative efficient?

is south african economic system more allocative efficient?

Second Best, What is the theory of second best

What is the theory of second best

Intermediate macroeconomics, Suppose a government uses an expansionary fisc...

Suppose a government uses an expansionary fiscal policy to get out of a recession. Use the IS/LM model and the IS-PC-MR model to explain what monetary policy to pursue.

Rationale for the intervention of government, 1. Describe why government re...

1. Describe why government regulation is required, citing the major reasons for government involvement in a market economy. 2. Justify the rationale for the intervention of gove

Write Your Message!

Captcha
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