Critically analyze the effectiveness of various approaches

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Reference no: EM13388504

(i) Critically examine the effectiveness of various approaches that may be used to reduce macroeconomic instability. Your answer should identify and show an understanding of the various policies that a country's government and/or central bank may use to achieve generally accepted macroeconomic goals. You are also encouraged to suggest your own ideas as to what should be done to more effectively attain desired macroeconomic goals. In your answer, you should explicitly identify macroeconomic goals that governments generally pursue. Are these the most important or do you think governments should aim to achieve other goals?

(You are encouraged to make use of aggregate demand/aggregate supply analysis.)

(ii) Some people (especially economists) argue in favor of international free trade while others favor protectionism. Critically examine who gains and who loses from free trade and protectionism. Overall do you think that international free trade is a good idea?

Reference no: EM13388504

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