Economic policies and practices

Assignment Help Business Economics

Reference no: EM13999030

Economic Policies and Practices

The policies of the federal government influence the outcomes of the various activities in that economy. When government policies change or unplanned events occur, the resulting economic events or activity will usually change. Listed below are several policies or events that affect the performance of the economy:

1. The level of investment decreases because of a lack of confidence in the economy.

2. Interest rates are kept artificially low by the Federal Reserve for several years.

Required:

For each of the items above, describe what would be the likely outcomes in the economy. Use the appropriate tools of analysis, such as aggregate demand and aggregate supply where appropriate, to justify and explain your answer.

Reference no: EM13999030

Questions Cloud

Assume a two good world : (Assume a two good world) Explain why it is that we allow for individuals to have different preferences, but make the claim that when acting rationally, all individuals will choose a consumption bundle where they have the same marginal rate of substi..

Discuss the functions of diplomatic : Discuss the functions of diplomatic, economic, political, and military attempts to acquire more land and resources. What were the consequences of such attempts in the hemisphere and in what became the United States? What forms of accommodation and..

The mission-vision and value statement of an actual firm : 1) the mission, vision, and value statement of an actual firm 2) whether or not you feel the firm has been successful in adhering to their statements and 3) provide examples to support your response to number 2

What value of price elasticity of demand for electricity : What value of price elasticity of demand for electricity is assumed by people who draw the vertical demand curve? What evidence from the new York experiment is consistent with this hypothesis? What evidence is inconsistent?

Economic policies and practices : The policies of the federal government influence the outcomes of the various activities in that economy. When government policies change or unplanned events occur, the resulting economic events or activity will usually change. For each of the items a..

Neoclassical theory of income distribution : If immigration raises the labour force, what is the expected effect of this on the return to labour (real wages) and capital (rental rate) according to the neoclassical theory of income distribution?

Explain the significance of the selected category : Select one (1) category from the completed World View Chart. Provide a rationale for choosing this category. Describe the selected content and explain the significance of the selected category across the religions studied

Draw demand and supply curves for this good : Luxembourg imports a good at a world price of $10 each. The domestic supply curve is S = 50 + 5P where P is in Ecu and lEcu = $1. Demand curve is D = 400 - 1OP. Draw demand and supply curves for this good and indicate how much is imported.

Suppose at current factor prices countrys manufacturers : Suppose at current factor prices a country’s manufacturers use 60 hours of labor for each acre of land and food is produced using only fifteen hours of labor per acre of land. If the economy’s total resources are 1800 hours of labor and 180 acres of ..

User Account

All Pages