Problem Set 3 Essay

585 words - 3 pages

Problem Set 3
Complete all questions listed below. Clearly label your answers.

1. Will increases in government spending financed by borrowing help promote a strong recovery from a severe recession. Why or why not?

Answer: Keynesians believe that increases in government spending will add to total demand, and thereby help stimulate both production and employment. “Keynesians economists believe that increases in government spending financed by borrowing will increase aggregate demand” (Gwartney, 247). They believe that stimulus borrowing will lead to higher interest rates and higher taxes in the future, both of which will weaken, if not totally eliminate, the positive consumption and investment effects of the additional government spending. “argue that Keynesian policies will lead to higher future interest rates and taxes inefficient use of resources, and wasteful ...view middle of the document...

Government spending increases and large budget deficits of 2008-2001 weakened the aggregate demand.

3. What is the current rate of unemployment (See bls.gov and indicate the month you are reporting)? How rapidly has GDP grown during the past 3 quarters? (See bea.gov and state the quarterly growth rate for each of the last three quarters) Is the economic growth high enough to validate the Keynesian view? Explain.

Answer: The current rate of unemployment in May 2015 is 5.5%. The value of production of goods and services in the US decreased at an annual rate of 0.7% in the first quarter, with an increase of 2.2% in the 4th quarter of 2014, and an increase of 3.5% in the 3rd quarter of 2014. Because of the decrease in economic growth in the 1st quarter of 2015, it would not be considered high enough to validate the Keynesian view.

4. Are changes in discretionary and fiscal policy likely to be instituted in a manner that will reduce the ups and downs of the business cycle? Why or why not?

Answer: Today, most economists do not believe that persistent discretionary shifts in fiscal policy are likely to help promote stability, particularly in a country like the United States. States with its system of checks and balances built into its political process. The problem is timing. If changes in fiscal policy are going to promote stability, they must add stimulus during recessions and restraint during booms. But it takes time for both Houses of Congress and the President to first decide on and approve the appropriate changes. They then need to institute them. Even more time is required before the stimulus spending impacts demand in the targeted areas of the economy. Moreover, Congress, the President and others’ ability to forecast the future direction of the economy is limited. Timing lags and forecasting limitations reduce the likelihood that fiscal changes can effectively promote economic stability.

This assignment is due by 11:59 p.m. (ET) on Monday of Module/Week 4.

Other Essays Like Problem Set 3

Whole Foods Essay

805 words - 4 pages WINONA UNIVERSITY Business Administration Department Semester: ___Fall 2014___ Assignment for Course #: ____MGMT 417______ Course Name: _________Compensation Management___________________ Submitted to: Baek-Kyoo (Brian) Joo, Ph.D. Submitted by: __Abbey Tibesar______________ Due Date: ______October 12, 2014 Assignment Title: [Problem Set-1] Job Evaluation at Whole Foods_____ CERTIFICATION OF AUTHORSHIP: I

Overcoming the Fear of Failing Essay

961 words - 4 pages forces that are contributing to make the situation more ideal and those contributing to make it more catastrophic • Strengthen an already positive force • Weaken an already negative force • Add a new positive force Associations/Images Technique 1. 2. 3. 4. 5. 6. 7. Leader assists group in identifying the problem or opportunity to be expanded Leader asks participants to select a solution to the problem, phrased in the form of a goal

Banate Bay

557 words - 3 pages natural habitats. | | VIII. CONCLUSION Decision matrix (Rating the ACAs in a score of 1 to 5 where 1 is the least recommendable and 5 is highly recommendable) ACA | I | II | III | Effectiveness | 4 | 3 | 5 | Ease of Implementation | 4 | 3 | 5 | Economy | 5 | 2 | 4 | TOTAL | 12 | 8 | 14 | IX. ACTION PLAN | RESPONSIBLE PERSON | DURATION | 1. Set meeting with the three (3) mayors | Governor | 1 day | 2. Discuss

CIS 115 Tutorials / cis115dotcom

1917 words - 8 pages that remain the same during the execution of a program? (Points : 4) 3. (TCO 1) What symbol in a flowchart would be used by a developer to represent an input or output operation? (Points : 4) 4. (TCO 1) Set is a process. What data type would you expect the variable, name, to have? (Points : 4) 5. (TCO 1) You are using dollar amounts in an algorithm. What data type would you assign? (Points : 4) 6. (TCO 2) What tool is used by developers to

Chapter 3 and 13 Homework

649 words - 3 pages Chapter 3 and Chapter 13 Homework Problem 03-02. The Road King Tire Company in Birmingham wants to monitor the quality of the tires it manufactures. Each day the company quality-control manager takes a sample of 100 tires, tests them, and determines the number of defective tires. The results of 20 samples have been recorded as follows: Sample | Number of Defectives | Sample | Number of Defectives |  1 | 14 | 11 | 18 |  2 | 12 | 12

Mba 641 Msf641 Review Sheet for Exam 1

717 words - 3 pages website has interactive quizzes that you can take at the textbook website and get instant feedback, so that would probably be a good review process. Also, make sure you review the exercises I have set out below by the problem explanations. You have access to the partial chapter solutions in the course resources area after we have covered a chapter, so make sure you are solving the exercises correctly. You can definitely do well on this exam

Sc4730 Assignments

5263 words - 22 pages environmental problems by completing Problem Set 3 on pp. 163-169 in the Lab Manual. Answer questions 1-10 in Exercise Set I. Answer questions 1-10 in Exercise Set II. Answer questions 1-10 in Exercise Set III. Answer questions 1-10 in Exercise Set IV. Submission Requirements Microsoft Word 1-2 pages Use Microsoft Excel for Exercise Set IV. Submit the electronic version (.xls or .xlsx) Unit 2 Exercise 1: Environmental Health Course

Industrial Problem Analysis

1673 words - 7 pages change the box under the SMD Machine when the set-up changed. But this means preparation and usage of 300-400 boxes as there are 300-400 material types. Not only the price of this proposal will be a problem but also the usage and storage of boxes would be a problem. 3. Again as an addition to the above proposals I have proposed to use boxes just as the same number of possible set-ups and put a label place on each box. When the material on the

Doc, Docx, Pdf, Wps, Rtf, Odt

735 words - 3 pages University of Engineering and Technology Lahore Department of Computer Science and Engineering Programming Fundamentals II Problem Set 5 1 Examples ;gets the nth member of a list. Assume n >= 1 (define takeNth (lambda (n lst) (if (empty? lst) "List too short" (if (= n 1) (car lst) (takeNth (- n 1) (cdr lst)) )))) ;length of a list (define listLength (lambda (lst) (if (empty? lst) 0 (+ 1 (listLength (cdr lst))) ))) ;remove the nth

Individual Personality Disorders

960 words - 4 pages solutions, set reasonable expectations for time to completion and make interim calls to keep the customer aware of their progress. Conclusion Banks have invested much improve customer satisfaction and customer retention. Through Customer Relationship Management, advanced technology and self-service channels banks have shown focus on retaining their customers. However, for banks to succeed at customer retention an effective problem resolution

Analysis of Existing Prospectus

858 words - 4 pages learner is seeking to solve. Theoretical Foundations There are concrete theories on which this prospectus is building from. The problem, the gap as well as methodological groundings are set on firm theoretical foundations, which make this prospectus a strong case to defend. Review of the Literature/Themes This learner brings a set of literature that highlights distinctive of the problems, shows where there are gaps, accentuates the gap the

Related Papers

Fin415 Week 3 Problem Set Essay

676 words - 3 pages Risk Measurement Techniques Paper Timothy McLain FIN/415 August 11, 2014 Peter Harper Risk Measurement Techniques Paper The technique of calculating the possibilities of distributions and its assigned investment risk defines Quantitative analysis (Harrington, Niehaus, 2004). A mathematical fact, the analysis determines a numerical value. Riskier investments promise greater rates of returns and the possibility of greater loses. The

Apologetics Tests Essay

4098 words - 17 pages The search for truth is known as the science of: Selected Answer: Epistemology Question 5 3 out of 3 points A person’s emotions and feelings are a valid standard for developing one’s worldview. Selected Answer: False Question 6 3 out of 3 points A salvation term which means to be “set apart” from this world and unto God. Selected Answer

Cmis 102 Hw 3 Essay

529 words - 3 pages /* Variable Declarations */ Int Student Name Int Total Number of Courses Taken Int course grade //Initialize variables Set A = 4.0 Set B = 3.0 Set C = 2.0 Set D = 1.0 Set F = 0.0 Set Student Name Set Course 1 = A, B, C, D, F Set Course 2 = A, B, C, D, F Set Course 3 = A, B, C, D, F Set Course 4 = A, B, C D, F Set Course 5 = <blank> End Calculation Total Course = 4 Calculate final GPA = A, B, B, C, NULL //Display final GPA for

Coding Questions Essay

1487 words - 6 pages Addition Simplification Problem Statement Bart Simpson is a student in the nursery school and is just learning how to add. The sum of multiple numbers needs to be calculated and the numbers can be either 1, 2 or 3 to make the calculation easier. Bart Simpson however, can calculate the sum only if the numbers to be added are in a non-decreasing order. For example Bart can calculate 1+1+2+2+3+3 but not 2+1+2+3+1+3. You have to help Bart to