Impact of business cycles

Assignment Help Business Economics
Reference no: EM132592969

Mainstream economists usually favor the use of monetary policy over fiscal policy to counter the impact of business cycles.

A. Briefly explain why economists are generally skeptical about the use of fiscal policy to counter the impact of business cycles.

B. Give 2 reasons why monetary policy is generally a more appropriate tool to counter the impact of business cycles.

C. Nevertheless, during the Great Recession (2007/2009) most economist advocated an active role for fiscal policy. Use your knowledge of the AS/AD model to explain why this may be the case in major recessions.

Reference no: EM132592969

Questions Cloud

What is the amortization of the competing patent : What is the amortization of the competing patent for 2019?Safe Company was granted a patent on a product on January 1, 2019 with a 20-year useful life.
Summary history and analysis of time warner business : A summary history and analysis of Time Warner business expansion since 2000
What amount should be reported as goodwill as a result : At the current year-end,In the statement of financial position, what amount should be reported as goodwill as a result of the acquisition?
SC1102 Modelling Natural Systems Assignment : SC1102 Modelling Natural Systems Assignment Help and Solution, James Cook University - Assessment Writing Service - What x value corresponds to the largest
Impact of business cycles : Mainstream economists usually favor the use of monetary policy over fiscal policy to counter the impact of business cycles.
About threats to information security : what would you do to help create a national "security culture," in which everyone is more knowledgeable and proactive about threats to information security?
Why is necessary to place limits on spending : Why is it necessary to place limits on spending and how can over or underspending compromise future allocations of money? Provide the example.
How stagflation is created : In the 1970s, the United States had a situation of stagnation (little economic growth) and inflation. The likely cause of this situation were the oil shocks of
What total amount of costs expensed for maribeth company : What total amount of costs should be expensed when incurred? Maribeth Company made the expenditures relating to Product Zee

Reviews

Write a Review

Business Economics Questions & Answers

  What is the upper and lower control limits for an s chart

What is the upper and lower control limits for an S chart, based on the sample size of 7, a grand mean of 40, and a average sample standard deviation of 7.

  What is lisa optimal choice for breakfast now

Illustrate her optimal choice on a graph, using indifference curve-budget line analysis. b. Suppose that the price of a bagel increases to $5. What is Lisa’s optimal choice for breakfast now? You do not need to illustrate this new choice in a gra..

  Level of nickel compared to the old treatment

Is there significant evidence (LaTeX: alpha=0.05a=0.05) that the new treatment would have a lower proportion of plants having a toxic level of nickel compared

  Contributions of the men who built america

Compare and contrast the lives and contributions of "the men who built America" to the lives of their workers. How and what did each of these groups contribute to country? How did people like Rockefeller and Carnegie rationalize their extreme wealth?

  Explain by how much total amount of deposits increase

Explain by how much does the total amount of deposits in the banking system increase. By how much does the money supply increase.

  Perfect competition-the profit maximizing level of output

Under perfect competition, at the profit maximizing level of output:

  Calculate the herfindahl-hirschman index

6 firms makeup most of an industry and have the following market shares: Calculate the Herfindahl-Hirschman Index (HHI), showing all work, given present market shares. Calculate the Herfindahl-Hirschman Index (HHI), showing all work, assuming Firm C ..

  What are the characteristics of martian firms

Suppose life is discovered on Mars and that it turns out to be quite sophisticated. In fact, perfect competition prevails everywhere on the planet. Which of the following characteristics of Martian firms are we likely to observe.

  Q1 assume the unit cost for pogo sticks is 40 in north pogo

q1. assume the unit cost for pogo sticks is 40 in north pogo as well as 8 in south pogo while the current exchange rate

  How does temperature affect water availability in ecosystem

Question 1: Would you expect endangered species to be more frequently generalists or specialists? Explain your answer.

  Compute the firm''s profit from part d

Compute the firm's profit from part d. Solve algebraically for the profit maximizing quantity (QM) and price (P M). You should get the same answer as in d.

  Changes in the supply of and demand for loanable funds

Interest rates in the United States have fallen in recent years. In terms of the loanable funds market, which combination of changes in the supply of and demand for loanable funds could best explain this?

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