Exploring Economics
8th Edition
ISBN: 9781544336329
Author: Robert L. Sexton
Publisher: SAGE Publications, Inc
expand_more
expand_more
format_list_bulleted
Question
Chapter 21, Problem 3P
To determine
To explain:
The reason for government can try to battlethe issue of recession by lowering interest rates.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
What happens to each sector of the economy when recession occurs?
What are the key indicators and factors that contribute to the onset of a recession in an economy?
What might deter a policymaker from trying to raise the rate of saving?
Knowledge Booster
Similar questions
- What are some reasons that the economy might be in a recession, and what is the appropriate government action to alleviate the recession?arrow_forwardIs there a personal responsibility to intervene and assist in a recession? Should Christians step up rather than the government?arrow_forwardWhy do some economists believe that better inventory control software may help to reduce the frequency and severity of recessions? Could differences in technology explain why recessions appear to be more frequent and more severe in poorer countries?arrow_forward
- Does the amount of government spending in an economy respond directly to changes in aggregate income, wealth, or interest rates? Does it respond indirectly to changes in these variables?arrow_forwardwhat might explain the differences seen in the role of consumption and investment during the recession and recovery phases of the business cycle? what about the period before the recession?arrow_forwardDo you think there is a predictable relationship between the business cycle and aggregate investment spending ? Why or why not?arrow_forward
- According to the classical perspective (the one from the 19th century that I described at the beginning of my first lecture video), what kinds of things could cause recessions or other economic downturns?arrow_forwardwhy would someone rather be a borrower during a period of unexpected rising inflation, and a lender during a period of unexpected declining inflation?arrow_forwardcould you please explain with detail about the following, please can you address the problem of an economic recession caused by high inflation, governments and central banks?arrow_forward
- if the economy is in a recession, who is at fault?arrow_forwardWhen real GDP declines during a recession, what typically happens to consumption, investment, and the unemployment rate? During an economic boom, what happens to these variables?arrow_forwardWhen real GDP declines during a recession, what typically happens to consumption, investment, and the unemployment rate?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Economics Today and Tomorrow, Student EditionEconomicsISBN:9780078747663Author:McGraw-HillPublisher:Glencoe/McGraw-Hill School Pub Co
- Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Economics Today and Tomorrow, Student Edition
Economics
ISBN:9780078747663
Author:McGraw-Hill
Publisher:Glencoe/McGraw-Hill School Pub Co
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning