How to reject fiscal stimulus measures in all policy forms

Assignment Help Microeconomics
Reference no: EM13183808

Some reject fiscal stimulus measures in all policy forms. Explain what the various limitations are to a successful fiscal stimulus. Be sure to consider the damaging activities and decisions of (a) private corporations, (b) commercial banks, and (c) wealthy individuals. Explore how these three leadership groups, each in their own way, frustrate and foil the goals of a fiscal stimulus program.

Reference no: EM13183808

Questions Cloud

Explain the characteristics of natural monopolies : Suppose that a natural monopolist was required by law to charge average total cost. On a diagram, label the price charged and the deadweight loss to society relative to marginal cost pricing. Briefly explain your diagram and comment on the results..
Explain the marginal cost and average total cost curves : In the early 1990's, a study found that moderate daily consumption of red wine reduced the incidence of heart disease in labratory rats. As a result of national press coverage of the report, the demand for red wine increased dramatically. Assume t..
Why government will fix macroeconomic failure : Fiscal policies can work only if private enterprises respond to them in certain way; if they respond in other ways, the policies fail. Explain and give examples.Can the government make things worse by intervening in markets Are there other options..
Why initial change in planned aggregate expenditure results : Why does an initial $400 billion annual decrease in consumption spending make income fall by more than $400 billion per year. Explain why an initial change in planned aggregate expenditure results in a much larger change in equlibrium income.
How to reject fiscal stimulus measures in all policy forms : Some reject fiscal stimulus measures in all policy forms. Explain what the various limitations are to a successful fiscal stimulus. Be sure to consider the damaging activities and decisions of (a) private corporations, (b) comm..
How much will equilibrium income change : Whether the government cuts taxes by $200 billion or increases transfer payments by $200 billion, the initial effect on disposable income is the same. By how much does disposable income initially change? If the government cuts taxes, by how much wi..
What is the incremental irr : A company is considering replacing its fleet of delivery vans and has a choice between gasoline and diesel powered vehicles. The gasoline powered truck has an initial cost of $34000 and a fuel economy of 9 MPG. The diesel powered model has an init..
Estimate the total material cost and the total manufacturing : Then the materials cost for each structure was $25,000 and the cost capacity factor is 0.65. Cost index values for 1999 and 2011 are 200 and 289 respectively. The estimated manufacturing cost for the first 1,000 square foot structure is $12,000. U..
Was the university wise to add another staff member : A university has 2 input variables, professors and staff. When it recently hired a new professor, the number of students increased by 3 per day. Then it added a new staff, and the number of students per day increased by 2. Professors cost $300,0..

Reviews

Write a Review

Microeconomics Questions & Answers

  What challenges does the firm face to sustain this practice

market power may produce a level of output greater than its profit maximizing level of output to gain market share and block entry of new firms. What challenges does the firm face to sustain this practice?

  How does and increase in consumers income affect

How does and increase in consumers income affect the demandfor mcds big mac hamburgers? if the demand curve shifts, indicate whether it will shift to the right and draw a graph to illustrate the shift. label graph appropriately.

  Explain a production possibility curve

Describe how the market economic system works to answer fundamental economic questions. Describe how this may differ from a command economic system.

  Discuss the important features of the new financial system

Economic historians have argued that the financial system that emerged in the late 1700s and early 1800s was instrumental in promoting modern economic growth a few decades later. Discuss the important features of the new financial system that fos..

  Article analysis - can anyone really create jobs

The current economic downturn has been called a housing disaster, a financial disaster and a debt crisis, but the simplifying logic of the political season has settled on what is really more a result than a cause.

  Analysis of monopolist comapny

Assume the demand curve for a monopolist is Qd=500-P, and the marginal revenue function is MR=500-2Q. The firm has a marginal and average total cost of $50per unit.

  Determine the total market value of the firm

Suppose you are an industrialist begninning a biotechnology company. If your research is successful, technology can be sold for $30 million. If your research is unsuccessful, it will be worth nothing.

  What are the equilibrium quantity and price in market

Determine the quantity demanded, the quantity supplied, and the magnitude of the surplus if a price floor of $42 is imposed in this market.

  Producers-consumers and competitive markets

Assume that the competitive firm's marginal cost of producing output q is given by MC(q)=3+2q. Suppose that the market price of the firm's product is $9. Find out level of output will the firm produce?

  Calculate kalvin''s expected haul over the four event

Calculate Kalvin's expected haul over the four event crime spree and calculate the probability that Kalvin will never get caught over the four days.

  What happens if the economy is producing a level of output

we know that when an economy starts out at long-run equilibrium and the government cuts taxes, this will result in inflation int he long run. what happens if the economy is producing a level of output below the full employment (long run equilibriu..

  Microeconomic monopoly

What are the profit-maximizing price and quantity? What will be the profits at these price and output levels?

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