Your policies on both inflation and unemployment rates

Assignment Help Macroeconomics
Reference no: EM13317490

Suppose that you are the chief economic advisor to the president of the United States. You are asked to propose a strategy to bring the economy out of recession. Unemployment is at 13 percent and inflation is relatively low. Your goal is to avoid an increase in inflation and bring the economy to full employment as rapidly as possible.

Applying the principles of the Keynesian model, what specific economic policies would you propose to accomplish these goals? What do you believe would be the short- and long-term effects of your policies on both inflation and unemployment rates? Provide justification and examples to support your conclusions.

Reference no: EM13317490

Questions Cloud

Which do you think is more volatile which market do you : Fed funds versus the Discount Rate Compare and contrast the Fed funds rate and the discount rate. Which do you think is more volatile? Which market do you think is more active? Why?
What is the bond equivalent yield : Bond Equivalent Yields Suppose a T-bill has 75 days to maturity and an asked discount of 4 percent. What is the bond equivalent yield?
Explain what the term culture means to you : What are some of the differences you might come across when interacting with clients, customers, colleagues and workmates in a community service organisation?
The instrument has a face value of and will mature : Money Market Prices The rate on a particular money market instrument, quoted on a discount basis, is 5 percent. The instrument has a face value of $100,000 and will mature in 40 days. What is its price?Money Market Prices The rate on a particular mon..
Your policies on both inflation and unemployment rates : Suppose that you are the chief economic advisor to the president of the United States. You are asked to propose a strategy to bring the economy out of recession. Unemployment is at 13 percent and inflation is relatively low. Your goal is to avoid an ..
Are x and z substitutes or complements explain : Q = 70 – 3.5P – 0.6M + 4Pzwhere ˆQ is the estimated number of units of good X demanded, P is the price of the good, M is income, and Pz is the price of related good Z. (All parameter estimates are statistically significant at the 1 percent level.)
What is a thread : What types of problems lend themselves to Processes? Is one better than the other? Why or Why Not.
What happened to the quantity of cups : Draw the budget constraint showing the trade-off between dining hall meals and Cups O’ Soup. Assuming that he spends equal amounts on both goods, draw an indifference curve showing the optimum choice. Label the optimum as point A.
Design appropriate it infrastructures to manage data : In the unlikely event of any discrepancy between the Academic Regulations and any other publication, including this module guide, the Academic Regulations, as the definitive document, take precedence over all other publications and will be applied..

Reviews

Write a Review

Macroeconomics Questions & Answers

  Opportunity costs of buying versus renting

A person rents a home for which she pays the landlord $12,000 a year. The can can be bought for $100,000 and tenant has this much money in a bank account that pays 4 percent interest per year.

  Elucidate the excess of cost over the marginal price

Elucidate the excess of cost over the marginal price at the profit maximizing price-quantity combination?

  Impact of lowering the speed limit

Using a supply and demand graph, make one shift of wither the supply or demand curve to illustrate the likely result of this action.

  Elucidate the increasing returns to scale as a basis

Elucidate the increasing returns to scale as a basis for international trade. Be sure that you define the relevant concepts, describe important features of such trade, and contrast these features with those of trade due to other causes.

  Describe the distinguishing features of various forms

Describe the distinguishing features of various forms of regional economic integration, including their benefits and costs.

  What is effect of the increase in energy prices on growth

According to the Solow growth model, how would a permanent increase in energy prices affect capital per worker and consumption per worker in the long run (that is in the steady state) Explain using a graph. b. In an endogenous growth model

  Imposes a binding price floor in the market

The price received by sellers in a market will decrease if the government imposes a binding price floor in that market or else.

  Describing the three savings

What is national saving? What is private saving? What is public saving? How are these three variables related?

  Who is hurt by the minimum wage

price floor. There is considerable interest in whether the minimum wage rate contributes to teenage unemployment. draw a demand and supply diagram for the unskilled labor market, and discuss the effects of minimum wage. Who is helped and who is hu..

  Indicate equilibrium price and quantity before increase

Draw a demand and supply graph for tortilla market and use itshow the effect on this market of an increase in the price of corn.Once again, be sure to indicate the equilibrium price and quantitybefore and after the increase in the demand for the e..

  Determine the desirability of the investment

The Charlotte Bobcats, a professional basketball team, has been offered the opportunity to purchase the contract of an aging superstar basketball player from another team. The general manager of the Bobcats wants to analyze the offer as a capital ..

  Chinese economic growth

As seen during financial crisis of the 1930s and in history, markets are globally interconnected. Aside from financial markets, different countries have different resources.

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!

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