Maximum potential growth of an economy

Reference no: EM13933273

Please write a short essay very concise and clear on each of the following questions.

1. What are the main implications of what is called the end of the cheap money era, on the macroeconomic side ?

2. Can policymakers increase the maximum potential growth of an economy ? If so, how ?

3. What is meant by stabilize the economy ? How policymakers can do it ? What are the limitations behind such stabilization efforts ?

4. Provide with at least 2 examples of policymakers interventions (or lack of them) in the market that could be considered as CLASSICAL or KEYNESIAN type of policy recommendations.

5. Recently we have observed a pronounced reduction in the international market Price of oil. Though, this tendency must be considered as a positive by markets for it would leave some additional room for consumers to spend more on other godos and services but energy and energy related products, explain why in the case of Mexico such inference would not necessarily be correct

Reference no: EM13933273

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