Reference no: EM131118621
Use of discretionary policy to stabilize the economy
Should the government use monetary and fiscal policy in an effort to stabilize the economy? The following questions address the issue of how monetary and fiscal policies affect the economy, and the pros and cons of using these tools to combat economic fluctuations.
The following graph shows a hypothetical aggregate demand curve (AD), short-run aggregate supply curve (AS), and long-run aggregate supply curve (LRAS) for the U.S. economy in April 2020.
Suppose the government decides to intervene to bring the economy back to the natural rate of output by using (expansionary, contractionary) policy.
Depending on which curve is affected by the government policy, shift either the AS curve or the AD curve to reflect the change that would successfully restore the natural rate of output.
Suppose that in April the government undertakes the type of policy that is necessary to bring the economy back to the natural rate of output given in the previous scenario. In June 2020, U.S. imports decrease because the United States has implemented trade restrictions on French goods. Because of the (inflation, consumer preferences, lags)associated with implementing monetary and fiscal policy,
the impact of the government’s new policy will likely (increase the long-run production capacity, fall short of the natural rate of output, leave the U.S. economy unchanged, push the economy beyond the natural rate of output) once the effects of the policy are fully realized.
|
Factors contributing to the rising cost of health care
: Identify the factors contributing to the rising cost of health care. When did rising health care costs become an issue? Why are health care costs continuing to rise? What can be done to address this issue?
|
|
Why that particular communication means so much to you
: Please share one way in which communication is important to you in your daily life, and why that particular communication means so much to you.
|
|
Firm products or brands in consumers minds
: 1. When the market research problem isn't clearly defined, a researcher should engage in _______ research. 2. A(n) _______ is often used to illustrate the position of a firm's products or brands in consumers' minds.
|
|
How it impacts your role as a medical professional
: how it impacts your role as a medical professional
|
|
Hypothetical-short-run aggregate demand curve
: Should the government use monetary and fiscal policy in an effort to stabilize the economy? The following questions address the issue of how monetary and fiscal policies affect the economy, and the pros and cons of using these tools to combat economi..
|
|
How will her strengths help her make any needed transitions
: What potential complexities could the client encounter during her inpatient stay? How will thesecomplexities impact the client? What types of strategies could you employ in this setting to ensure that the client is not re-traumatize?
|
|
What were the consequences of a failure to report
: What were the consequences of a failure to report? What impact did his decision have on patient safety, on the risk for litigation, on the organization's quality metrics, and on the workload of other hospital departments?
|
|
Describe the error in the conclusion
: There is a linear correlation between the number of cigarettes smoked and the pulse rate. As the number of cigarettes increases the pulse rate increases. Conclusion: Cigarettes cause the pulse rate to increase
|
|
What is equilibrium expected real interest rate in recession
: Suppose that the demand for and supply of bonds both change with the state of the business cycle. In economic expansions, the demand for bonds is given by the equation D=200+2,000r; and the supply is S=500-1,000r. Given these equations, what is the e..
|