Knowledge of aggregate supply-aggregate demand

Assignment Help Macroeconomics
Reference no: EM132471830

You are the chief policymaker at the Reserve Bank of Australia. Economic growth is growing similar to long-term trend. The prime minister of Australia informs you that given a federal election is due in a year, she will significantly increase government spending now.

Given (a) your knowledge of Aggregate Supply-Aggregate Demand, (b) fiscal policy and (c) the role of the Reserve Bank of Australia to maintain inflation at between 2-3% on average over the business cycle, what advice would you give her? Justify your answer.

Reference no: EM132471830

Questions Cloud

Blue cross-blue shield plan : MTOP Inc. offers its employees the choice between a private insurance company plan (Blue Cross/Blue Shield), an HMO, and a POS.
Journalize the entry to record the factory labor costs : Journalize the entry to record the factory labor costs. Journalize the entry to apply factory overhead to production for November.
What is the relationship between the required reserve ratio : What is the relationship between the required reserve ratio and the simple deposit multiplier (money Multiplier)?
How much cash would show on this business statement : William received a plumbing licence and decided to start his own business. How much cash would show on this business' statement of financial position
Knowledge of aggregate supply-aggregate demand : The prime minister of Australia informs you that given a federal election is due in a year, she will significantly increase government spending now.
Discuss the trade-off involved with trying : Discuss the trade-off involved with trying to increase a country's physical capital stock. Provide two alternative ways to increase physical capital
Is it better to sell the highest bidder or the lowest bidder : Is it better to sell the highest bidder or the lowest bidder?why? Do you think there are any other taxes we should consider when looking at type of transaction
Determine the term of the note : Given the following information concerning a promissory note: Principal $2,700 and Interest Rate 14%. Determine the term of the note
Increase-decrease in gdp growth in daily life : What are the effects of increase & decrease in GDP growth in daily life?

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

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