Q athe economist on the 14th february 2008 printed the

Assignment Help Business Economics

Reference no: EM13354605

Q. (a)The Economist on the 14th February 2008 printed the following:

"More recently, the post-mortems on America's 2001 fiscal boost have been positive. By luck more than by design, the income-tax rebate was well timed (Mr Bush had promised to cut taxes long before the recession hit). It also seemed to work. One study suggested that people spent between 20-40% of their rebate in the quarter in which it was received, and over 60% of it within six months. Poorer, more credit-constrained people spent a higher share of their rebates".

The article touches on two crucial conditions for a fiscal stimulus to work. What are they? How does a fiscal stimulus work in principle? Explain your answer with the help of diagrams (AD-AS or Keynesian Cross).

(b)What are the three most important factors driving economic growth? Explain briefly using an appropriate example.

Reference no: EM13354605

Questions Cloud

Qconsider a market consists of a dominant rm producing the : q.consider a market consists of a dominant rm producing the majority of the market supply and large number of small

Q1 what are the three most important factors driving : q1. what are the three most important factors driving economic growth? explain briefly using an appropriate example.q2.

Qpluto inc has a beginning cash balance of 430 on february : q.pluto inc has a beginning cash balance of 430 on february 1st.the firm has project sales of 600 in january 800 in

Q1 decreased by 486 per day wait for a new-patient : q1. decreased by 4.86 per day wait for a new-patient appointment and by 5.20 per minute wait in the reception room p.

Q athe economist on the 14th february 2008 printed the : q. athe economist on the 14th february 2008 printed the following more recently the post-mortems on americas 2001

Q1 jaes building a corporation which follows short-run cost : q1. jaes building a corporation which follows short-run cost functionq3 - 10q2 36q.a. illustrate what is the level of

Q1 if the variable is almost normally distributed does that : q1. if the variable is almost normally distributed does that mean you use common distribution?use the data set noting

Q1 during the recession of 2008 2009 the detroit urban area : q1. during the recession of 2008 2009 the detroit urban area had very considerable unemployment which is the highest in

Qthroughout history the most popular form of money has been : q.throughout history the most popular form of money has been gold.a. provide 3 reasons why gold has been such a popular

User Account

All Pages