Answer to Question #20872 in Macroeconomics for David Dasher

Question #20872
Assume that the country is in a period of high unemployment, interest rates are at almost zero, inflation is about 2% per year, and GDP growth is less than 2% per year. Suggest how fiscal and monetary policy can move those numbers to an acceptable level keeping inflation the same. What is the first action you would take as the president? As the chairman of the Fed? Why? What would be your subsequent steps? Make sure you include both the positive and negative effects of your actions and include the trade-offs or opportunity costs.
Include the following concepts in your discussion:
• Demand and supply of money
• Income and Productivity
• Interest rates
• Okun’s law
• The Phillips curve
• Taxation
• Government spending
• Wages
• Aggregate supply
• Aggregate demand
• Long run and short run
• Costs of inflation
• The multiplier and the tax multiplier
• An open vs. a closed economy
• The idea of tax rebates to stimulate the economy
Part 2: Assume the country is in a budget deficit and carrying a very large debt. Discuss the dangers of a high debt to GDP ratio and a growing budget deficit. Would this change any policy changes
Expert's answer
Unfortunately, your question requires a lot of work and cannot be done for free.
Submit it with all requirements as an assignment to our control panel and we'll assist you.

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!


Assignment Expert
01.02.13, 13:22

Dear visitor
Questions in this section are answered for free. We can't fulfill them all and there is no guarantee of answering certain question& but we are& doing our best. And if answer is published it means it was attentively checked by experts. You can try it yourself by publishing your question.
Although if you have serious assignment that requires large amount of work and hence cannot be done for free& you can submit it as assignment and our experts will surely assist you
If you have further questions please feel free to ask them via or you can use live chat on our website.

Ottie Dykes
01.02.13, 06:03

I donot understand how this works, send me an e-mail and a phone number so I can reach you.

Leave a comment

Ask Your question

New on Blog