User Account

All Pages

What might the us congress do to stabilize aggregate demand

Assignment Help Macroeconomics
Reference no: EM131340192

Assignment

Suppose that survey measures of consumer confidence show that a large wave of pessimism regarding the future performance of the economy is sweeping the country. Likewise, U.S. stock price indexes (the Dow Jones Industrial Index, the S&P 500 Index, and the Nasdaq) are all falling rapidly.

1. If, in the short run, policy makers do nothing, what will happen to U.S. aggregate demand and what especially would we expect to happen to the "Personal Consumption" and "Domestic Private Investment" components of U.S. aggregate demand? Explain.

2. What, again in the short run, should the Federal Reserve do if it wants to stabilize aggregate demand? Please be specific in your discussion of the specific policy tools that are available to the Fed.

3. If the Fed were to do nothing, what might the U.S. Congress do to stabilize aggregate demand? Again, please be specific.

4. If both the Federal Reserve and the Congress were to do nothing, what could the President do to stabilize U.S. aggregate demand?

Reference no: EM131340192

Questions Cloud

Assessed and used for succession planning : Then, discuss the problems of cooperative training that should be taken into consideration by human resource professionals. Finally, make a recommendation as to how cooperative training can be assessed and used for succession planning.
How can you reconcile a bankruptcy declaration : How can the adherence to high standards of ethical business practice contribute to the goal of shareholder wealth maximization?
Create a timeline that displays the development of abnormal : Create a timeline that displays the development of abnormal psychology. Include at least five to seven main milestones.
Calculate its r.m.s. and peak values : An alternating voltage has an amplitude of 500 V, and an r.m.s. value of 350 V. Calculate the peak factor.
What might the us congress do to stabilize aggregate demand : Econ 104- If the Fed were to do nothing, what might the U.S. Congress do to stabilize aggregate demand? Again, please be specific.
How do money and capital markets differ : What roles do financial middlemen and financial intermediaries play in the operation of the U.S. financial system? How do the two differ?
Meals at a wedding reception : A catering company prepared and served 320 meals at an anniversary celebration last week using seven workers. The week before, five workers prepared and served 245 meals at a wedding reception.
How do primary and secondary financial markets differ : What factors need to be considered when determining the optimal form of organization for a business enterprise?- How do primary and secondary financial markets differ?
Most automobile manufacturing plants : How does forecasting effect just-in-time or lean production systems used in most automobile manufacturing plants?

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!

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