What is a dynamic game?
In simple word, a dynamic game is where every player gives their best effort to win the game, upon the condition that they follow certain rules and regulations. Although it sounds like in a dynamic game no one knows which team will win, people will see that some of the players missed a few opportunities to score. The main problem with that is when one is inside the game as a player, he or she does not have the outside view and I think having that outside view is very important in real terms, which we call strategy, planning, wisdom, or experience. Therefore, a dynamic game is where each player, both individually and as a team, uses planned strategies and plays with their best efforts to win the game. If we use
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The strategies each groups are following are very different ones; the monetary authority is following the money circulation, stabilizing the business cycle, reducing the problem with unemployment and inflation. Fiscal authority’s strategy is to make sure that we do not run into a huge budget deficit, our expenditures stays under control, taxes are collected, and make sure everyone is contributing to the system fairly. On the other hand, the public is looking for better jobs, lesser taxes, and more benefits from the government, such as health, retirement, free schools and housings.
When are government budgets inflationary? (Again, think in terms of a game.)
Most of the government’s spending ends up financed by the taxes, which is not inflationary at all. When government finances its spending through bond sales, either to its citizens or companies, it can create either expansionary or inflationary situations depending on how they balance their budget.
It is expansionary when the government spending gets financed through bond selling to the banks will increase the banks’ net worth and money supply, thus it is expansionary. The banks may turn around and use its money to buy the bonds which could have been used for other investment. This type of one time deal really does not have any major impact on the economy. Now if the government spending gets financed by bond sales to the Federal Reserve, and the Federal Reserve is buying
Fiscal and monetary policy are alike because they are both meant for economic goals but differ in that fact that the government controls fiscal policy and the Federal Reserve controls monetary policy.
The Federal Reserve is currently implementing expansionary policy. When the Federal Reserve implements expansionary policy, their goal is to increase money supply, and in turn helping to grow the economy. During expansionary policy taxes are cut, and there is typically an increase in government spending. Expansionary policy is also implemented to decrease unemployment and increase inflation. I think that using expansionary policy could be a good thing for the economy of the United States. I think with the goals of decreasing unemployment, increasing money supply, increase government spending, and grow the economy this could be a good thing for the economy of the United States. I think that decreasing the unemployment rate is particularly
Deficit spending will occur when the government or even a business spends more money that what it makes in revenue (“Governmental Deficit Spending,” n.d.). It seems like this technique would only have to be used every once in a while. However, deficit spending is a fairly common practice by the government and many businesses, but could spell doom if there is failure to plan accordingly when paying off the debt (“Governmental Deficit Spending,” n.d.). For the government, it is used as an instrument to stimulate economic growth while asserting it still has some type of financial stability (“Governmental Deficit Spending,” n.d.). There are great advantages the government can claim as being beneficial for the economy when practicing deficit spending.
Let us start by discussing why does the government spending increase during recession? Firstly, because the economy goes into recession, many workers loose their jobs and at the same time the corporate profits decline. As a result the income tax revenues for the government decline. Secondly, because several workers have lost their jobs, this results in the increase in the use of government supplement programs to help them out in their difficult times. Thirdly, to help the perturbed workers, the government creates new “social” programs during such times. Thus the government spending rises. It rises not just because of the increased
I believe that I am a good candidate for the Amy L. McKee-Everett Memorial Scholarship due to my caring and loving nature. An excellent example would be the time I gave back to Flat Rock River YMCA Camp this year, during New Years Eve. I volunteered as a counselor to a group of amazing girls. I wanted to volunteer my time, seeing that Flat Rock had done so much for me, in my seven years as a camper. It was time to give back. The 53 hours of time I spent helping out with all the girls, was immensely rewarding. I wouldn't trade my experiences I have had with Flat Rock River YMCA Camp for the world. This experience made me a better person, and will carry over into my undergraduate years of college. I am going into my freshman year bearing skills
Governments are funded in one of two ways, through taxation and loans. The government has the ability to borrow large amounts of money. It is advantageous since the government can react quickly by borrowing through the use of treasury notes and bonds when there is not enough private sector spending. They may sometimes step in to boost the economy. This spending can infuse much needed cash into the economy to avert some of the repercussions of a depression. It is here that the government must be very cautious in how and where the money is spent, since all spending will not necessarily lead to a positive or profitable income in the future. Another way to boost the economy is through funds that are invested in businesses and programs that spark economic activity such as job creation, which creates wages, which improve the standard of living, generate
Expansionary fiscal policy is a form of fiscal policy that involves decreasing taxes, increasing government expenditures or both in order to fight recessionary pressures. A decrease in taxes means that households have more disposal income to spend. Higher disposal income
When conducting research, there are some problems that are seen and some that are unseen. Kempinen and Kurlychek ran into some issues that were unexpected and hidden. However, they did not change the scope of the experiment. In my opinion, the internal factor of instrumentation could have threatened the internal validity of the study. It became a concern when gathering the study referenced the gathering of the information about the convictions were missing from more than one-third of the cases, therefore having to use the previous arrest record as measurement rather than prior criminal record. The information is a crucial part of research because you have two variables in the study being measured, technical violations and new crime convictions. The investigators had to rely on the prior arrest, which is not as valid as prior convictions. The seriousness of the offender's new convictions was unavailable for the study (Kempinen & Kurlychek, 2003). Therefore having to leave that particular narrative out of the discussion on whether an individual who graduated from the boot camp or prison went on to commit more serious crimes. With the incomplete information, the investigators could be motivated to continue the study to monitor the progress of the participants over time. So the information about an offender's prior convictions and possible post serious convictions had to be left out of the study. Which also touches on the internal factor of testing pre and post.
A contractionary fiscal policy occurs when government spending is reduced either through from an increase in tax revenues or reduction in public spending and is used in periods in which it seeks slow the growth of aggregate demand. While an Expansionary Fiscal Policy implies an increase in public spending through increases in public spending or lower tax revenues. You can apply expansionary fiscal policies when seeking to increase aggregate demand.
Simply put, when a government starts spending more, or taxing less. In the U.S. today, expansionary fiscal policy is typically associated with an expanding deficit and national debt, but this policy doesn't necessarily equate to these two hot political topics. A government
The statement of cash flow is the combination of cash that is created from operating, investing, and financial activities of a business. Kohl's Corporation displays a positive trend of cash flows mainly due to an increase in cash from operating and financials activities while reducing negative cash from investing activities. In the operating activities, there is an increase in depreciation costs due to Kohl's active expansion of existing stores while building new stores throughout the country. This expansion has increased the amount of depreciation that is added back as cash flow from $57,724,000 in 1998 to $127,491,000 in 2001. This depreciation cost as a percentage of net sales increased from 1.9% in 1998 to 2.1% in 2001. Another
First of all, expansionary fiscal policy is passed to expand the money supply of an economy to encourage economic prosperity, growth, and combat inflation. Inflation is described as the overall increase of prices in an economy or country. There are several ways an
Aggregate spending refers to consumer purchases, business and housing investment, government purchases of goods and services and exports net of imports . This is the second way to add up GDP. The Federal Reserve uses monetary policy to stimulate aggregate demand by expanding money supply and lowering interest rates, which increases households and firms’ desired spending. Expansionary fiscal policy uses changes in taxes and government spending to affect overall spending.
Increased spending on investment adds to aggregate demand and helps to restore normal levels of production and employment.Fiscal policy, on the other hand, can provide an additional tool to combat recessions and is particularly useful when the tools of monetary policy lose their effectiveness. When the government cuts taxes, it increases households’ disposable income, which encourages them to increase spending on consumption. When the government buys goods and services, it adds directly to aggregate demand. Moreover, these fiscal actions can have multiplier effects: Higher aggregate demand leads to higher incomes, which in turn induces additional consumer spending and further increases in aggregate demand.Traditional Keynesian analysis indicates that increases in government purchases are a more potent tool than decreases in taxes. When the government gives a dollar in tax cuts to a household, part of that dollar may be saved rather than spent. The part of the dollar that is saved does not contribute to the aggregate demand for goods and services. By contrast, when the government spends a dollar buying a good or service, that dollar immediately and fully adds to aggregate demand.
They would argue that direct interest rate changes could be used to control aggregate demand. Whereas, Monetarism does not believe that government should intervene by managing the level of aggregate demand, they rather prefer the use of monetary policy to achieve a long-run view of price stability.