What is the best approach to managing the economy

Assignment Help Microeconomics

Reference no: EM133380744

Questions: What is the best approach to managing the economy, supply-side or demand-side economics?

There are two schools of thought on how to managing the economy. The first is demand-side economics which also the Keynesian approach. This approach maintains that the demand for products and services drives the economy as such economic policies should focus on the aggregate demand curve. The other approach is called supply-side economics or more popularly referred to as Reaganomics. In this trickle-down approach, it is postulated that the production of goods and services is what drives the economy with the focus on the aggregate supply curve. Both fiscal and monetary policies have the potential to stimulate change in either the aggregated demand or the aggregate supply curves.

In your initial post defend which approach should be used to (ensure to include in your subject line, which approach you are defending):

Restore the economy that is in a recession.
Identify the challenges that may be encountered in the approach you selected.
Your initial post must include one source using correct reference.

Reference no: EM133380744

Questions Cloud

What 2-3 values or principles can you think of that would : What 2-3 values or principles can you think of that would form a solid foundation for creating social policies (refer to Kidder text)? Share them in discussion

How do theorists explain schizophrenia : How do theorists explain schizophrenia? Which theory/psychological model do you think best explains the disorder and why?

How might you defend this pricing strategy : how might you defend this pricing strategy? What conditions would need to hold in order to make this sort of price discrimination successful?

Mechanism of impulse transmission at synapses : And you make physiological properties, exhibited by the nerve and defined each. Discuss using a flow chart, the mechanism of impulse transmission at synapses.

What is the best approach to managing the economy : Restore the economy that is in a recession. Identify the challenges that may be encountered in the approach you selected. Your initial post must include one

Explain why the flu shot will help prevent illness : Why do think Esperanza's mother got the flu shot? Explain why the flu shot will help prevent illness?

What is the current policy being used : What is the current policy being used? Is there an alternative policy approach that may work better/worse (taxes or subsidies, for example), and why?

Create a sequence diagram showing the interactions : The Order Management System - Create a sequence diagram showing the interactions of your play and Create a class diagram from the sequence diagram created

Why you feel they are important to add : why you feel they are important to add. How will this new lesson plan template help you to create more effective lessons? include reference?

User Account

All Pages