Draw an as-ad diagram

Assignment Help Business Economics
Reference no: EM131456967

1. Like most economists, Ms. Swonk says she does not think the economy will fall back into recession or experience a pronounced rise in unemployment. Instead, economists on Wall Street are looking for the economy to have created 140,000 jobs in April, below average compared with the monthly rate of 168,000 jobs added in the first quarter but better than the 88,000 jobs created in March. The unemployment rate is expected to remain at 7.6 percent.

In the paragraph above, there is a discussion of how fiscal policy is affecting the unemployment rate. Draw an AS/AD diagram and use it to explain the argument in this paragraph. Are the arguments in this article more with short run or long run effects? Why?    

2. What would be appropriate fiscal policy to help stabilize our economy? Please evaluate how our economy is doing and why you selected your respective fiscal policy action. What are some of the challenges of using fiscal policy to stabilize our economy?

Reference no: EM131456967

Questions Cloud

What is the operating cash flow : McCord Inc., has sales of $34,630, costs of $10,340, depreciation expense of $2,520, and interest expense of $1,750. what is the operating cash flow?
Economic downturn since the great depression : The Financial Crisis of 2007 - 2009 was the worst economic downturn since the Great Depression of the 1930's, and like that event had global repercussions.
Provide the companys existing mission statement : Provide company's existing mission statement and code of ethics. In what way do they articulate their ethical practices through policies and public outreach.
Taxes is progressive or regressive : Explain why each of the following taxes is progressive or regressive.
Draw an as-ad diagram : Draw an AS/AD diagram and use it to explain the argument in this paragraph. Are the arguments in this article more with short run or long run effects?
Amount of labor employed : Wagner Tool produces output according to Q = 2K1/2L1/2, where K is the amount of capital used and L is the amount of labor employed.
What characteristics or qualities the person possesses : How this leader has influenced you and why you think he or she is effective? What characteristics or qualities this person possesses that affected you most.
What is the null hypothesis of the study : What type of study design was used to compare the risk of self-harm behaviors before and after bariatric surgery - What is the null hypothesis of the study?
Policymaker from trying to raise the rate of saving : How to explain how higher saving leads to a higher standard of living. What might deter a policymaker from trying to raise the rate of saving?

Reviews

Write a Review

Business Economics Questions & Answers

  Construct the corresponding marginal cost schedule

Lisa has a lawn-mowing business. Lisa hires students at $40 a day to mow lawns. Lisa leases 5 lawn mowers for $200 a day. Construct (graph) the corresponding marginal cost schedule. How many lawns should be cut during each day by Lisa’ business to mi..

  To build trust among virtual team members managers

to build trust among virtual team members managers shoulddeep-six the egos and be friendlybuild a shared mythologyavoid

  Describe the condition of the commercial banking system

Assume that the following data describe the condition of the commercial banking system: Total Reserve: $80 billion Transaction deposits: $700 billion Cash held by public: $300 billion Reserve required: 0.10. How large is the money supply (M1)?. Are t..

  How many units should each firm produce

An industry demand curve faced by firms in a duopoly is P = 100 - Q, where Q = Q1 + Q2. MC for each firm is 0. How many units should each firm produce? How much money will each firm make?

  Combinations of debt-equity financing mean

Combinations of debt-equity financing mean that a weighted average cost of capital (WACC) percentage rate (%) results. What is the WACC % for a purchase made with 1/3rd  of the total purchase made with a credit card (debt financing) at i=24% per year..

  Federal government calculates the budget on a fiscal year

The federal government calculates the budget on a fiscal year that begins each year on October 1 and ends the following September 30. At the beginning of the 2005 fiscal year, the Congressional Budget Office [CBO] forecast that the federal budget def..

  Prestige pricing objectives emphasize

Prestige pricing objectives emphasize

  Assume an interest rate of per year

A company offers $2.5 million for the rights to a patent. If the patent can bring in $500,000 in royalties over the next six years, should the offer be taken? Assume an interest rate of 6% per year.

  The demand function for firms product

The demand function for a firm’s product is Q = P!3 . The firm’s marginal cost of production is constant at MC(Q) = 12. Calculate the elasticity of demand, as a function of Q. Using your answers to (a) and (b), what is the firm’s profit-maximizing ma..

  In an oligopolistic market

In an oligopolistic market, firms pay close attention to the strategies of their rivals. In monopolistic competition, with a large number of sellers, it is assumed that there is not this kind of rivalry, or interdependence. Why is there probably some..

  Explain how quantity of labour to be hired wage rate

Explain how quantity of labour to be hired and wage rate would be determined if input market is perfectly competitive. output market may be either perfectly competitive or imperfectly competitive.

  Assume the demand for plastic surgery is price inelastic

Assume the demand for plastic surgery is price inelastic. When the price of plastic surgery increases, the number of operations decreases. The percentage change in the price of plastic surgery is less than the percentage change in quantity demanded. ..

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