Experiencing recession--consumption

Assignment Help Business Economics
Reference no: EM133188759

Macropoland is currently experiencing a recession--consumption and investment are very sluggish, and unemployment is quite high at 9%. Currently, inflation is very low at 0.4% (the historical average rate of inflation is about 2%). The Macropolish President has just hired you as her economic advisor. Your job is to prescribe policy that would enable the economy to recover from the recession. Explain how you could use the standard tools of expansionary monetary policy and expansionary fiscal policy to stimulate this economy towards economic growth.

Reference no: EM133188759

Questions Cloud

Demand curve or shift of demand curve : Explain whether it is a movement along the demand curve or a shift of the demand curve.
Compare the settlement patterns : Compare and contrast the settlement patterns. What forces and ideas shaped their origin?
Company external and internal communications : You will examine Emirates airline using a variety of research sources: business publications, company external and internal communications, media, etc
Discuss what monetary policy : Discuss what monetary policy is. Discuss different instruments of monetary policy.
Experiencing recession--consumption : Macropoland is currently experiencing a recession--consumption and investment are very sluggish, and unemployment is quite high at 9%.
Disconnects between parts of business : Describe a detailed example in which there is inefficiency or disconnects between parts of the business or the organization.
Admin Law : Is the SEC an executive agency or an independent regulatory agency? Does it matter to the out-come of this dispute? Explain.
Debate-Sarbanes-Oxley Act : According to the rule adopted by the majority of courts to determine accountants' liability to third parties, could Chase be liable to Superior? Explain.
Determine the unemployment rate : Describe?the formula(s) used to determine the unemployment rate. Describe how inflation is measured using the Consumer Price Index (CPI)

Reviews

Write a Review

Business Economics Questions & Answers

  Equilibrium output-price level-consumption and investment

Consider a closed economy. Assume that goods prices are fixed in the short-run and that firms produce whatever they need to meet demand. Assume that money demand is negatively related to the nominal interest rate and positively related to the level o..

  Real wage rate over the course of the business cycle

Explain why relatively flat as opposite relatively steep labor demand curves are more consistent with the empirical observation that there are relatively minor changes in the real wage rate over the course of the business cycle.

  What price would these bonds sell in the marketplace

At what price would these bonds sell in the marketplace? How many bonds would the firm have to issue to raise $1 million?

  The flat-screen plasma tvs are selling extremely well

The flat-screen plasma TVs are selling extremely well.  The originators of this technology are earning higher profits. What theory of profit best reflects the preformance of the plasma screen makers?

  Minimum of three academic references

Write a five page essay, using a minimum of three academic references from the CSU online library and proper APA formatting on the following topic: pros and cons of tariffs.

  Prices tend to rise in response to a natural disaster

Prices (fuel, water, grocery items, etc.) tend to rise in response to a natural disaster.

  Find the competitive market equilibrium price and quantity

Managerial Economics - University of Sharjah - EMBA Program - Explain the long run equilibrium if the industry is perfectly competitive and there is free entry

  Explain the underlying basis for foreign direct investment

Explain the underlying basis for foreign direct investment, and discuss several factors that may contribute to it. What factors have likely contributed to the current U.S. net direct investment position?

  Presentation to a multiple-perspective audience

How much of the opposing side should you share in a presentation to a multiple-perspective audience, and what techniques would you use?

  Component of international trade associated

Almost every item that we use in our day to day lives, has some component of 'International Trade' associated with it. For example, Colgate toothpastes are generally 'Made in Mexico', marketed by Colgate Palmolive, New York. Countless items are 'Made..

  Comparative advantage in producing coffee

When the country trades, its consumption possibilities now has an absolute slope of 3, because it has a comparative advantage in producing coffee

  Aggregate expenditures and nominal gdp

Using the values in the table, calculate the following aggregate expenditures and nominal GDP. Instructions: Round your answers to 1 decimal place. Include a negative sign if necessary.

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