What would the neo-classical policy prescription

Assignment Help Business Economics

Reference no: EM13837003

Around 2000, the dotcom bubble in the stock market burst and the US entered a recession. What would the neo-classical policy prescription have been for the US government and the Federal Reserve to do about this recession? How would this have operated?

Reference no: EM13837003

Questions Cloud

Model of educational attainment : Consider the following facts. After the age of 25, persons with college degrees earn more than persons with no education beyond their high school degrees, ceteris paribus. Moreover, persons with high school degrees earn the same as persons who have h..

Examples of transactions that are part of net capital flows : Suppose that Poland had exports of $100 billion in 2014 and imports of $150 billion. What were their net capitals flows in that year? Give two examples of transactions that are part of the net capital flows of Poland, and indicate whether they enter ..

Calculate the economic order quantity for plumbing supplies : Under its present policy of purchasing 5,000 sinks per order, what is Plumbing Supplies total annual inventory cost? Calculate the Economic Order Quantity for Plumbing Supplies Inc.

Assumed that the costs of acquiring an education : In the typical signaling model, it is assumed that the costs of acquiring an education are higher for low-ability than for high-ability workers. Suppose that the government steps in and subsidizes low-ability workers for the higher costs they incur i..

What would the neo-classical policy prescription : Around 2000, the dotcom bubble in the stock market burst and the US entered a recession. What would the neo-classical policy prescription have been for the US government and the Federal Reserve to do about this recession? How would this have operated..

Estimating the natural rate of unemployment : Economists have devoted a lot of effort to estimating the natural rate of unemployment in particular countries at particular times. Is this a useless academic exercise, or are there good reasons to want to know this number? Explain.

Independence referendum had passed : Suppose (contrary to fact) that the Scottish independence referendum had passed, Scotland had become independent, and you became its finance minister. Your first order of business is to recommend a currency for Scotland.

Depreciation is actions taken by european central bank : The euro has been depreciating against the $ for the past several months. The proximate cause of this depreciation is actions taken by the European Central Bank (ECB). What were those actions? Why did the ECB take those actions?

What proportion of investment is private saving : Show that the value of GDP at the point of spending balance is 6,000 billion. What proportion of investment is private saving? Government saving? Saving by the rest of the world?

User Account

All Pages