Why it is difficult to achieve macro objectives, Microeconomics

Assignment Help:

Why is it so difficult for government to achieve all macro objectives simultaneously?

Specifically showing possible trade-offs i.e.

a) Stimulatory policies which enhance AD might cause inflation

b) Growth might conflict with full employment as structural and technological change affects demand for certain labour groups (see sectoral/technological/regional unemployment), supply-side policies might increase efficiency and create redundancies amongst labour groups

c) Full employment might also create inflation

d) Growth might increase imports (HL: MPM, and lower multiplicative effects) and decrease exports due to inflation

e) Growth Æ inflation Æ depreciation of currency

f)  Fiscal stimulus may involve deficit spending and debt, which in turn could have a negative effect on the exchange rat

 


Related Discussions:- Why it is difficult to achieve macro objectives

Long run economic profits, 1. Igora's pizzeria want to know if it should st...

1. Igora's pizzeria want to know if it should stay open this spring. Total Revenue will be $ 12,000 per week and Total Cost will be $ 18,000 per week. The fixed cost of running the

Given Qd=3-P^2, Yao''s weekly demand for basketballs is given by Qd = 3-P^2...

Yao''s weekly demand for basketballs is given by Qd = 3-P^2 where P is the price of basketballs. At the current price, Yao''s demand for basketballs is unit elastic. What is the cu

Market demand curve, How to graph the market demand on tobacco taxing in ca...

How to graph the market demand on tobacco taxing in california

Base case NPV analysis , How base case NPV analysis is applied in financial...

How base case NPV analysis is applied in financial risk management

Production function curve, different types of production funtion and curve ...

different types of production funtion and curve given by different economist

Explain the concept of opportunity cost, The concept of opportunity cost oc...

The concept of opportunity cost occupies a very important place in modern economic analysis. The opportunity cost of any good is the next best alternative goods that are sacrificed

Explain costs and benefits of establishing a common currency, Discuss the c...

Discuss the costs and benefits of establishing a common currency. So, there is a convergence issue in setting up the common currency - and there will also be a convergence prob

How to do economic analysis of companies, For the purposes of economic anal...

For the purposes of economic analysis, a normal profit contains the cost of the lost opportunity of the next best option allocation of the firms resources.  In a purely competitive

Write Your Message!

Captcha
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