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

Quantity supply, factor influencing quantity supplied

factor influencing quantity supplied

Salesmaximisation, fig2.3 elaplanition of sales maximisation

fig2.3 elaplanition of sales maximisation

Economics 6th edition, What is the theory of absolute and comparative adva...

What is the theory of absolute and comparative advantage?

Absolute advantage and comparative advantage, Absolute advantage is the sim...

Absolute advantage is the simplest yardstick of economic performance and it may be simply describe as If one person or a firm or a country may produce more of something with the sa

Describe stabilisation policies as by the imf, Describe stabilisation polic...

Describe stabilisation policies as by the International Monetary Fund (IMF). Define stabilisation policies as basically a list of demands set forward by the IMF to a debtor nat

How have falling commodity prices affected many countries, How have falling...

How have falling commodity prices affected many developing countries? Definition of commodities; raw material like copper, iron and bauxite; and agricultural goods like rice an

Wave theory , what is the energy of violet light with a frequency =7.50 x 1...

what is the energy of violet light with a frequency =7.50 x 10 to the 14 s-1

Fixed exchange rate system, FIXED EXCHANGE RATE SYSTEM: National curre...

FIXED EXCHANGE RATE SYSTEM: National currencies are generally acceptable within the geographical boundaries of a country. As such, trade between countries typically involves

3rd degree price discrimination(monopoly), What is third degree price discr...

What is third degree price discrimination? Explain with case analysis,give two successful & unsuccessful cases of 3rd degree price discrimination.

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