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

Market supply and increase in supply, Market supply and Increase in supply:...

Market supply and Increase in supply: Market supply is the total quantity of a product that all firms in an industry are willing to offer for sale at a given market price an

Exam, Why is it unusual for yields on longer term notes to be lower than yi...

Why is it unusual for yields on longer term notes to be lower than yields on shorter term notes? 2pts b) Why would any investor buy the 2 year note (instead of the 1 year) given it

Elasticities and secondary axis graphs, Create a chart with a secondary ver...

Create a chart with a secondary vertical axis to plot related data series with different scales. Use the Combination Chart Fashion worksheet to create and format a combination c

Visit to village panchayat for agricultural based project., related documen...

related documents, photos,paper for permission from court etc.

Pp curve, how does pp curve solve the problem of how to produce, what yo pr...

how does pp curve solve the problem of how to produce, what yo produce, and when to produce?

Meaning and characteristics of plural sense and singlural , meaning and cha...

meaning and characteristics of plural sense and singlural

Demand and supply, Dance fans switches away from Dance music to R&B music A...

Dance fans switches away from Dance music to R&B music AND the price of MP3 players increases

Determine the post war rental rate, Consider two hypothetical nations, Solo...

Consider two hypothetical nations, Solowia and Growia, which are defeated in wars. These two nations were suffered from wars differently; the damage is on capital stock in Solowia,

The state of confidence in conventional judgements, The State of Confidence...

The State of Confidence in Conventional Judgements : While individuals fall back on conventions to guide their behaviour in the face of uncertainty, they are also aware that th

How to calculate the a price index, Why does a price index based on constan...

Why does a price index based on constant weights tend to overstate inflation in periods after the base year when the price of one good is rising quickly compared to other goods?

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