Address the economic problems shown in the table and graph

Assignment Help Microeconomics

Reference no: EM133390410

1. Analysing economic data - is there any good news?

The following are economic data for New Zealand in 2016 and in 2017.

	2016	2017
Unemployment rate	4.6	4.7
Inflation rate	0.65	1.85
Economic growth rate	4.2	3.8

Source- please consider this link for readings in order to answer: Reserve Bank of New Zealand. 2021

Consider the data for 2016 and 2017 shown in the table above. Use your knowledge of the short-run AD-AS model to graph the changes in output and inflation between 2016 and 2017. Should the Reserve Bank of New Zealand (RBNZ) consider lowering interest rate as its monetary-policy stance to address the economic problems shown in the table and graph? Explain your answer.

Question 1. What are the tools by the use of which the Reserve Bank can conduct an expansionary monetary policy? Briefly explain your answer (with an appropriate reference wherever used).

Question 2. In the aftermath of the Global Financial Crisis, Don Brash (DB), a former governor of the Reserve Bank of New Zealand, suggested that they should only print money if the government simultaneously cut spending. Explain the likely impact of this policy suggestion and comment on the view on the state of the economy (i.e. whether he assumes NZ economy is at or below full employment).

Reference no: EM133390410

Questions Cloud

What contributes to the collapse of the roman republic : What contributes to the collapse of the Roman Republic? Please consider all possibilities. By the end of the Civil War, how would Augustus transform

Russian war and its impact to others countries economy : Russian War and Its Impact to others countries Economy - the price value movement has an effect on what is GDP like

Compare and contrast the experiences of an individual : Compare and contrast the experiences of an individual in 1500 versus the experiences of an individual in 1600. What had changed and why? What had not changed

Explain quebec primary goals in the pursuit : Explain Quebec's primary goals in the pursuit of self-determination,(their main goals: Their main goal has been to achieve independence and establish Quebec

Address the economic problems shown in the table and graph : What are the tools by the use of which the Reserve Bank can conduct an expansionary monetary policy? Briefly explain your answer (with an appropriate reference)

What is your response to mercy relationship with corrupt : What is your response to Mercy's relationship with the corrupt politician Mensar- Artnurr and Connies moral condemnation of her sister's behavior?

What were the political, social, and cultural consequences : What were the political, social, and cultural consequences of the fall off Quebec (and New France) for the different societies inhabiting what is today Canada?

What types of conversations do the students on the trip say : What types of conversations do the students on the trip say they have with their parents? How are these different and/or similar to the conversations

How a society can become more productive : how a society can become more productive. Both views-Progressive and Cyclical- agree that there are forces in society that lead to evil and unproductive

User Account

All Pages