Consequence of policy action

Reference no: EM1368936

If every time real GDP exceeds potential GDP, contractionary policy is used and whenever real GDP is less than potential GDP, expansionary policy is ised. GDP equal potential GDP and then aggregate demand increase. As a consequence of this policy action taken, what would the results be...

Not sure if expansionary policy will decrease unemployment, or it would lower the price level from what it would otherwise be.

Reference no: EM1368936

Questions Cloud

Estimate electric flux through vertical rectangular surface : Consider a closed triangular box resting within a horizontal electric field of magnitude E = 7.40x10^4 N/C, below.

Hr administration in public and private sector : Show what are the similarities and differences between HR administration in the public and private sector and what impact do those differences have on the practice of HR administration?

Create subnet assignment which give contiguous address space : Provide subnet assignment which gives contiguous address space to each department. (b) Do same in (a) but with department B having 70 hosts.

Describe the benefits of using a six sigma methodology : Describe the benefits of using a Six sigma Methodology in a Decision Making Process. Demonstrate your thought using an example

Consequence of policy action : If every time real GDP exceeds potential GDP, contractionary policy is used & whenever real GDP is less than potential GDP, GDP equal potential GDP and then aggregate demand raised.

Public message to communicate a negative current event : Explain how may the company write a message to communicate the situation to the general public?

Find the speed of the moving charge : Two identical 30 {rm g} particles each carry 3 {rm mu C} of charge. One is held fixed, and the other is located 1 {rm mm} away and released. Find the speed of the moving charge when it's 1{rm cm} from the fixed charge.

Explain new technologies or material changes : Explain new technologies or material changes that transform businesses' or companies' expectations and the way they interact

Considerations for training development : Considerations for Training Development - Show the process through which training needs identified in the analysis phase are translated into the training objectives.

User Account

All Pages