User Account

All Pages

Negative shock to short run aggregate supply

Assignment Help Macroeconomics
Reference no: EM131880390

Consider a recession: production has declined, incomes on average are falling, and unemployment is rising.

a. If the recession were triggered by a significant drop in aggregate demand (AD), what kind of policies might you prescribe to pull the economy out of recession (fiscal and/or monetary)? Explain.

b. Would you alter your previous policy prescription in any way if the recession were created by a negative shock to short run aggregate supply (SRAS) in the economy? Explain.

Reference no: EM131880390

Questions Cloud

Keynesian or classical approach : In general, would you (or what is the consensus of the group) favor a more Keynesian or Classical approach in response to shocks to the economy? Explain.
What is stagflation : What is stagflation? Would it be best to respond to this scenario with a temporary or a permanent tax cut... or neither? Explain.
Illustrate the weaknesses and strengths of selected study : It is reasonable to admit that in four weeks you have been exposed to a great deal of information about the human mind!
Assuming the bond pays interest annually : A company issues bonds with a 6% coupon rate and a 20 year maturity. What is the coupon amount for each $1,000 bond, assuming the bond pays interest annually?
Negative shock to short run aggregate supply : Would you alter your previous policy prescription in any way if the recession were created by a negative shock to short run aggregate supply
How killing bin laden has affected al qaeda : Give two examples illustrating how killing Bin Laden has affected al Qaeda. Analyze speech to consider whether it was one of victory or one of realized risk.
You are supposed to receive at the end of three years : The security has a yield to maturity of 8% what is the amount of the payment that you are supposed to receive at the end of three years?
Fiscal policymakers to intervene in the economy : What are the pressures that lead fiscal policymakers to intervene in the economy? In addition, what tools do they have at their disposal to "stabilize"
Reduce the firm risk associated with financial leverage : To reduce the firm’s risk associated with this financial leverage, the firm is considering reducing its debt by $1,000,000

Reviews

Write a Review

Macroeconomics Questions & Answers

  Provide the reference information for the articles

Please provide the reference info. for the articles found so that I can read and understand the issues.

  Find the nash equilibrium in model

Two identical firms each have a cost function TC = 2y2 and the market demand for their output is P = -4Q+192 a) Write the "best response" function for each firm. b) Find the Nash equilibrium in this model

  Describe various types of desktop

1) Describe various types of desktop you came across and recommend the chosen with its attributes, characters and qualities. 2) Classify the search engines you gathered information's. Point the best out of it and appraise why.

  Compare swing java gui components to awt components

Compare Swing Java GUI components to AWT components. Explain at least one way the components are similar and at least one way they are different. Provide examples to support your rationale.

  Determine which operations are unnecessary

If surgeons really have the ability to increase the demand for operations, which kinds of operations will be most affected? Can you think of a way to determine which operations are unnecessary?

  Explain opportunity cost

1. Explain Opportunity Cost and provide an example. 2. What is the difference between absolute advantage and comparative advantage? What is the benefit of trade?

  Which choice would represent a possible trade

The table shows the maximum annual output combinations of wheat and aluminum that can be produced. Which of the following choices would represent a possible trade based upon specialization and comparative advantage.

  Question regarding the comparative advantage

Are these initial conditions favorable for trade?  If so, which nation has a comparative advantage in which good? If each nation does, indeed, have a comparative advantage, then how much will each nation produce if it completely specializes in the..

  Illustrate what research did krueger use to -help win

Illustrate what research did Krueger use to "help win" a rise in the minimum wage in 1996. What did his results show.

  Irrigation project describes the ratio of the discounted

Price benefit analysis of an irrigation project describes the ratio of the discounted current value of benefits to costs is less than one.

  At what rate of interest does the liguidity trap emerge

Rate if investment (billions)$12 $12 $15 $16 $17 $17 $17 (a) At what rate of interest does the liguidity trap emerge?

  Which affect the foreign exchange value

A State and explain 5 factors which affect the foreign exchange value of the Irish currency (Euro). B Irish exports have risen, in recent years. Discuss the effects of this development on each of the following: (1) The amount of borrowing by the Iris..

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd