About the overall direction of the economy

Assignment Help Business Economics

Reference no: EM131084999

The economy has seen the unemployment rate increase from 6 percent to 9.5 percent, the inflation rate decrease from 2.8 percent to 1.2 percent, and there has been a 24 percent decline in consumer spending and a 45 percent decline in investment spending in the same time period.

A) Given the above, what would you predict about the overall direction of the economy? Explain your answer.

B) Describe the fiscal policy that will already be automatically operating, as well as the appropriate discretionary fiscal policy that the government should adopt, given the above situation.

C) Describe the appropriate monetary policy that the Bank of Canada should be operating, given the above situation.

Reference no: EM131084999

Questions Cloud

Worth of bonds to the public in an open market operation : If the Bank of Canada sells $100 million worth of bonds to the public in an open market operation, what is the change in quantity of money that will eventually result? Assume that the currency drain is 0.15 and the desired reserve ratio is 0.05, and ..

Discuss and explore the synergy that rfid : This paper is based on your readings and assignments so far from this class. Use this material to discuss and explore the synergy that RFID technology & Time Based Competition has had on the grocery retail industry. 2 pages

What economic principles are relevant to tragedy of commons : What economic principles are relevant to the Tragedy of the Commons, and how are they relevant? Cite every economic principle you can think of that applies. Also, what factors make it difficult to manage a commons?

Contact with the cells for five minutes : In the acid-fast staining procedure, why is carbolfuchsin left in contact with the cells for five minutes?

About the overall direction of the economy : The economy has seen the unemployment rate increase from 6 percent to 9.5 percent, the inflation rate decrease from 2.8 percent to 1.2 percent, and there has been a 24 percent decline in consumer spending and a 45 percent decline in investment spendi..

List each of the big five personality types : Please list each of the Big Five personality types - this comes from research, not your two texts for this class - see Resources tab in this class......LibGuides/Galileo

Counter stain in the gram stain procedure : In the acid-fast procedure, why is the sample counterstained with methylene blue or brilliant green rather than safranin which is used as the counter stain in the Gram stain procedure?

Does the tragedy of the commons apply to real life : Does the Tragedy of the Commons apply to real life? (At the beginning of every example, explicitly state: what is the commons and what is the tragedy.) If not, explain why not and give two examples. If so, cite two examples of where and how it applie..

Negative staining procedure : Why must the stain be spread very thin in negative staining procedure?

User Account

All Pages