EBK ECON: MACRO4
4th Edition
ISBN: 9781305562097
Author: MCEACHERN
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Question
Chapter 16, Problem 3.4PA
Sub-part
A
To determine
The lags in the discretionary policy from the time when the government determines that recession is there in economy until a tax cut is there in order to reduce
Sub-Part
B
To determine
The lags in the discretionary policy from the time there is an increase in the money supply to until its effects on the economy is realized and the reasons for which the long lags make discretionary policy ineffective.
Sub-Part
C
To determine
The lags in the discretionary policy from the time the recession has started until the time until the time government has identified the severity and existence of recession and the reasons for which the long lags make discretionary policy ineffective.
Sub-Part
D
To determine
The lags in the discretionary policy from the time there is an increase in the money supply to until its effects on the economy is realized and the reasons for which the long lags make discretionary policy ineffective.
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Students have asked these similar questions
What are the likely consequences of a
government implementing a policy of
austerity during a period of economic
recession?
A. It would stimulate economic growth by
increasing consumer confidence.
B. It would lead to a decrease in the
unemployment rate.
C. It would potentially deepen the recession
by reducing overall demand.
D. It would have no effect on the economy's
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Suppose an economy is experiencing recession. From the list below, select two (2) policy tools that the government can use to restore the economy back to a long-run macroeconomic equilibrium.
Note: if you select more than two policy tools, 1 point will be taken for each additional choice.
A.
The government can decrease income taxes.
B.
The government can increase interest rates.
C.
The government can increase government spending.
D.
The government can send optimistic messages to boost expectations.
E.
The government can expand the resource base.
people tend to spend more money when the economy experience a
Chapter 16 Solutions
EBK ECON: MACRO4
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