The economy is in a boom and the inflationary gap is largea, Ask an Expert

Economics

The economy is in a boom and the inflationary gap is large

a. Describe the discretionary and automatic fiscal policy actions that might occur

b. Describe a discretionary fiscal restraint package that could be used that would not produce serious negative supply-side effects.

c. Explain the risk of discretionary fiscal policy in this situation.

View complete question

Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91235384

Have any Question?Write your Review or question?

Related Questions in Microeconomics

Question how were the interests of southern states

Question: How were the interests of Southern states addressed by the Three-Fifths Compromise and the lack of export taxes? What were the major points of the "Virginia Plan" at the Constitutional Convention? How did the " ...

Question regarding utility maximization what is meant by

Question: Regarding utility maximization, what is meant by the application of the "Equimarginal Rule" and it's relevance to the marginal principle ? Discuss the concepts of utility (total & marginal), budget constraints ...

Question suppose that there are only three types of fruit

Question: Suppose that there are only three types of fruit sold in the United States. Annual sales are 1,200,000 tons of blueberries, 5,400,000 tons of strawberries, and 11,000,000 tons of bananas. Suppose that of those ...

Question india and china have roughly the same size

Question: India and China have roughly the same size population, and although per capita GDP in China is probably somewhat larger, the difference is not very great. Labor costs are lower in India than in China, and in sp ...

Question illustrate graphically the monopolists profit

Question: Illustrate graphically the monopolist's profit maximization problem. Include the monopolist's profit-maximizing price and level of output, any consumer surplus, any producer surplus, and any deadweight welfare ...

Question suppose that real gdp is currently 171 trillion

Question: Suppose that real GDP is currently $17.1 trillion, potential GDP is $17.4 trillion, the government purchases multiplier is 2, and the tax multiplier is -1.6. • Holding other factors constant, by how much will g ...

Question analyze the effect of an interest rate decrease on

Question: Analyze the effect of an interest rate decrease on a consumer who is currently a lender. Specifically, answer the following questions. A graph would be useful in your analysis. a. What happens to consumption to ...

Question suppose you work for a large retail chain in the

Question: Suppose you work for a large retail chain in the US that is considering expanding abroad. You are asked to determine whether the initial investment should be made in Mexico, Argentina, Brazil, or Chile. Explain ...

Question explain why the following claims might not imply

Question: Explain why the following claims might not imply causal relationships and outline how you would test for a causal effect using an experimental methodology with a treatment and control group: a. People with larg ...

Question wendys serves its hamburgers fresh off the grill

Question: Wendy's serves its hamburgers "fresh off the grill" This ensures high quality but creates leftover burgers if the staff overestimates the demand. Wendy's solves this problem by using the meat in chili, tacos, a ...

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

Recent Questions

Ask Microeconomics Expert