Active policy approach be more politically popular

Assignment Help Business Economics

Reference no: EM135995

Q1. Why do proponents of active policy recommend government intervention to close an expansionary gap? Briefly discuss.

Q2. Why might an active policy approach be more politically popular than a passive approach, especially during a recession?

Q3. Some economists argue that only unanticipated increases in the money supply can affect real GDP. Explain why this may be the case.

Q4. What is the policy credibility and how is it relevant to the problem of reducing high inflation? How is credibility related to the time inconsistency problem?

Reference no: EM135995

Questions Cloud

Two alternative recreation projects : A county is considering using a piece of park land for one of two alternative recreation projects.

Hiro nakamura is ceo of the cola king bottling company : Hiro Nakamura is CEO of the Cola King Bottling Company, a small regional producer operating in the Pacific Northwest. Nakamura is considering two alternative expansion proposals

Find the equilibrium values of the real interest rate : Find the equilibrium values of the real interest rate, consumption, investment, and the price level.

Wacc break point that is associated with retained earnings : If MMM's capital structure consists of 25% debt and 75% equity, stated in total funds, what is the WACC break point that is associated with retained earnings

Active policy approach be more politically popular : Some economists argue that only unanticipated increases in the money supply can affect real GDP.

Differences between depository and nondepository : discuss the major types of financial intermediaries in the U.S. and illustrate the differences in the way assets and liabilities are recorded on their balance sheets

Incumbent monopoly in a market : Suppose that the supply curve of healthcare services is perfectly inelastic. Analyze the impact of an increase in consumer.

Major league baseball : In a typical day the store sells some of each type of cola, which suggests that Major League Baseball has adopted FOA because it fears that regular binding arbitration is addictive.

Event of a rejection : Proposals for modifications of the law are formulated by committees. Under the closed rule, the legislature may either accept or reject a proposed modification, but may not propose an alternative.

User Account

All Pages