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

Price determination explain briefly about it by then, about the price deter...

about the price determination with the held of diagramatic explanation numerical explanation related to the concept

S block elements, electronic configuration of s block elements

electronic configuration of s block elements

Production, for the total product curve why is it when you reach at maximum...

for the total product curve why is it when you reach at maximum adding more input leads to decline in output?

Revenue, draw the supernormal curve

draw the supernormal curve

Market structures, Ask question #Minimum 1 00 words accepted#

Ask question #Minimum 1 00 words accepted#

International economics., How has the haberler''s theory of opportunity cos...

How has the haberler''s theory of opportunity cost an improvement over the classical theory of trade

Analysis utility, difference between the cardinal analysis theory and ordin...

difference between the cardinal analysis theory and ordinal theory

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