Coincidence that economy is currently in recession

Assignment Help Business Economics
Reference no: EM13743076

Suppose you are given a one day task as an economic advisor to the prime minister. You will be given two current economic problems for suggestive solutions.

Problem-1: It is just a coincidence that economy is currently in recession. The prime minister has asked you to frame a policy package that will restore full employment without affecting the current account. Using the DD-AA model, describe a package of monetary and fiscal policies that will do the job. Model assumes that the country has a flexible exchange rate and the Marshall-Lerner condition holds.

Problem-2: The economy is in a recession, and you need to figure out how to get it out. The problem is, the economy is currently running large current account deficits, and so you do not want to make the current account deficit ‘worse’. Given this constraint, should you recommend monetary or fiscal expansion. Illustrate your answer with a graph if possible.

Reference no: EM13743076

Questions Cloud

Describe the product-price-place and promotion of porsche : Describe the Product, Price, Place, and Promotion of Porsche. Explain the current situation of the organization in the market (industry, market, and general environment analysis). Describe your recommended organizational structure.
Assume that consumption decreases : Assume that Consumption decreases by $25 million, Investment increases by $10 million, Government Purchases increase by $60 million, Exports decrease by $30 million and Imports decrease by $55 million. What is the net change in GDP in $million?
Describe animal and plant cell structures : Title: Animal and Plant Cell Structures, Instructions: Your lab report will consist of the completed tables. Label each structure of the plant and animal cell with its description and function in the provided tables
How does supply and demand play a role in economic thinking : How does Supply and Demand play a role in economic thinking? What factors influence economics that don't directly relate to it? How does public choice economics influence the market?
Coincidence that economy is currently in recession : It is just a coincidence that economy is currently in recession. The prime minister has asked you to frame a policy package that will restore full employment without affecting the current account. Using the DD-AA model, describe a package of monetary..
Identifying the topic chosen in the subject of the posting : Choose one of the two "Moments" and present your answer to the "Discussion Questions" at the end in a discussion posting, clearly identifying the topic chosen in the subject of the posting. Support your opinions by referencing sources such as the t..
According to purchasing power parity : According to Purchasing Power Parity, if a country has a relatively high inflation rate then its currency should be depreciating. Explain.
Describe the term the vietnam era 1963-1975 : Describe the term "The Vietnam Era (1963-1975)" that it need to be answerd in the format of ( when? who? why? how? ) and any important info abiut the term. keep it simple and short.
Evaluate current business articles for key insights : Evaluate current business articles for key insights and relevancy to business disciplines. Discuss current global issues as related to business disciplines.

Reviews

Write a Review

Business Economics Questions & Answers

  Dividend policy does not affect the requirement

When we use the AFN equation, we assume that the ratios of assets and liabilities to sales (A0*/S0 and L0*/S0) vary from year to year in a stable, predictable manner.

  Solow growth model reacts to an increase in government spend

Elucidate how the Solow Growth Model reacts to an increase in government spending.

  Explain how each barrier can foster either monopoly

Explain how each barrier can foster either monopoly or oligopoly. What barriers, if any, do you feel give rise to monopoly that will allow the government to become involved to protect consumers?

  Widespread utilize of vending machines in japan

Do vending machines conserve on any possessions other than labor. Does your answer offer any additional insight into the widespread utilize of vending machines in Japan.

  Find price associated with long-run equilibrium

If going rate for developing a roll of film is $8.50, is industry in long-run equilibrium. If not, find price associated with long-run equilibrium.

  What factors will influence effect of social security system

Use indifference curve analysis to show how the Social Security pension system can reduce annual consumption for some workers who have a strong preference for current versus future consumption.

  What is the value of his utility at this bundle

Identify Nick’s utility-maximizing consumption bundle on your graph, including his indifference curve that is associated with his optimal bundle. e. What is the value of his utility at this bundle?

  Estimate the difference between the inflation rates

illustrate what would you estimate the difference between the inflation rates of the U.S. also Japan.

  Q1 get all of the monthly data for the tsx composite index

q.1. get all of the monthly data for the tsx composite index cansim series v122620.a. present a time series plot of

  Estimated that the cost function of a single-product firm

An economist estimated that the cost function of a single-product firm is: The fixed cost of producing 10 units of output. The total cost of producing 10 units of output. The average total cost of producing 10 units of output.

  Discuss the influence of federal funds on major economic

Need help with the paper on federal reserve system and its monetary policy tools. Also discuss the influence of federal funds on major economic indicators like inflation

  Essential distinctions among the stages growth theory

A university registrar who uses her experience with university admissions along with your high school grades, application essays, letters of recommendation.

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