Suggest how fiscal and monetary policy can move those numbers to an acceptable level keeping inflation the same.
At the end of the article, it states there was an immediate improvement when HI departed and the former GM was reinstated. Why do you think this happened?
August 7, 2017Determine the primary security concerns regarding the scenario in question. Explain the controls you would implement in order to lessen those concerns.
August 7, 2017Suggest how fiscal and monetary policy can move those numbers to an acceptable level keeping inflation the same.
rt 1: 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
- Interest rates
- The Phillips curve
- Taxation
- Government spending
- Wages
- Costs of inflation
- The multiplier and the tax multiplier
- The idea of tax rebates to stimulate the economy
Part 2: Assume that 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 affect any policy changes you discussed in Part 1?
