Ask Question, Ask an Expert


Ask Business Economics Expert

Assume that the following information about the economy is correct. The potential GDP is 3 percent.Real GDP has fallen at a minus two percent rate in the last 12 months(2007) but was growing at a 2.0 percent rate through most of 2006. The unemployed rate in 2007 is 7.7 percent up from 6.8 percent and has been in the neighbourhood of one percent for the post 12 months. Median short term inflationary expectations are averaging percent over the past year and long term inflationary expections are average 1.5 percent in 2007. The leading indicators have been negative for the past six months. Payroll jobs are averaging -40,000 a month in 2007. Productivity growth has averaged 1.3% over the past 12 months, but was 0.5% in the last quarter. Capacity utilization was at 77% for most of 2006 and was 75 percent in the first six months of 2007. The dollar has strengthened by 10% on a trade- weighted basis over the past year, consumption spending has increased at a one percent level the past three quarters. The Empolyment Cost Index and hourly wages have increased at a 1.5% rate over the past quarters. Residential investments has decreased by 16% over the past year ,but non residential business investment has increased by 6% in trhe las year. Federal Government ha sincreased by 5% over the lst 12 months but state and local government spending has decreased by 10 Percent during that same time period. Based on the information given below, Please answer rth e following five problems.

1. Using business cycle terminology where is this economy in the business cycle?

2. Where is the economy on the aggregate demand and aggregate supply?

3. What are the strengths and weaknesses of this economy?

4. What changes would you recommended for aggregate demand or aggregate supply?

5. describe how would your firm be impacted by your suggested changes in aggregate demand and aggregate supply?


Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M920520

Have any Question? 

Related Questions in Business Economics

Cite the sources used to answer this question provide the

Cite the source(s) used to answer this question. Provide the source(s) below your response and apply APA guidelines for references. 1) Class, is it possible for a business to show an accounting profit, but actually earn ...

Assignmentinstructions1 select an illegal activity and

Assignment Instructions 1. Select an illegal activity and transform/mask its' true purpose with the disguise of a legitimate business operation. In other words, create a start-up business that would be viewed as a legal ...

Assignmentpart idirections please write a paper that is at

Assignment PART I Directions: Please write a paper that is at least two to three pages in length in which you address the questions below. Write your paper in APA format with at least one cited scholarly reference. Revie ...

What is the relationship between economy business and

What is the relationship between economy, business, and society? -6 page essay (includes only ONE page for references,but the cover page is not included in the 6 page requirement) -Double spaced -APA format

Assignment -consider the following cobb douglas production

Assignment - Consider the following Cobb Douglas production function where Y is maize output, X 1 is labour input, and X 2 is the capital. Data for estimating this equation is given in the Table below. Y = β 0 X 1i β_1 X ...

Allocation and allotments please respond to the following1

"Allocation and Allotments" Please respond to the following: 1. From the first e-Activity, examine and evaluate the disparity of Georgia budget allocation for education and property tax to the various localities. Based o ...

Question 1 for the following situations calculate

Question 1 . For the following situations, calculate elasticity of demand and comment on the answer.                             When the price of commodity X was Rs. 12/-, 40 units it were demanded. When the price decre ...

Chapter 1 managing changeq1 figure 176 shows how bad an

Chapter 1 Managing change Q1 Figure 1.76 shows how bad an implementation can become. Action needs to be taken to prevent this kind of situation. What would you recommend should be done? Q2 You are the project manager for ...

Free trade and restricted trade - benefits and cost1-2

Free Trade and Restricted Trade - Benefits and Cost 1-2 paragraphs APA format/ no plagarism Using your own words, define both free and restricted trade. What do you feel are the benefits and the cost to having free trade ...

Assessment task descriptiontopicstudents will be required

ASSESSMENT TASK: DESCRIPTION Topic Students will be required to choose a specific enterprise (it should ideally be one with which they are somewhat familiar) and develop a sustainability indicators monitoring system for ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro