assuming, in a country. the unemployment rate was 15%, And the inflation rate was 17% Ánd the GDP growth rate was 4%. our goal is to make all these 3 factors are equal. which is GDP Growth rate, Inflation rate and unemployment . imagine, that you have a high power in the government, what would you do to make them all equal? 1) would you be able to achieve this goal using only a single policy concept? why or why not? 2) what policy or policy mix would you use to reach that goal? Please explain the policy or the policy mix, explain the policy you would use, and discuss how it would work to achieve the goal.

assuming, in a country. the unemployment rate was 15%, And the inflation rate was 17% Ánd the GDP growth rate was 4%. our goal is to make all these 3 factors are equal. which is GDP Growth rate, Inflation rate and unemployment . imagine, that you have a high power in the government, what would you do to make them all equal? 1) would you be able to achieve this goal using only a single policy concept? why or why not? 2) what policy or policy mix would you use to reach that goal? Please explain the policy or the policy mix, explain the policy you would use, and discuss how it would work to achieve the goal.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

The economy of a hypothetical country has been stable for two or three years with very low unemployment. Wages have been gradually increasing during this time. Now an aggressive policy of increasing tariffs on foreign goods imported into the country results retaliatory actions from the other countries against the country’s products and services. This causes great loss of business in the country and results in significant portion of workers losing their jobs. 1. What kind of economic gap will start to occur (inflationary or recessionary)? 2. What part of the Federal Reserve’s congressional mandate does this scenario trigger (price stability and maximum sustainable employment)? 3. What kind of monetary policy might be helpful to stabilize the economy (expansionary or contractionary)? 4. What specific monetary policy tools does the Federal Reserve have available to use in this scenario? 5. Explain in detail, how should the Federal Reserve use each of these tools to maximize their effect…
The two major problems facing the economic development of every country are a high unemployment rate and a significant rise in inflation for a prolonged period of time. Based on the above, examine the following two expressions and analyze them: One of the benefits of unemployment is that it allows for higher quality job search and promotes economic efficiency, but it increases the unemployment rate and creates economic recession. Unanticipated high inflation redistributes society's income, diminishes the ability to make long-term plans, and forces individuals, governments, and businesses to carefully evaluate the purchasing power of their assets.
How do I explain how changes in unemployment and inflation are related to changes in GDP growth? My answer will ultimately be specific to the 1980s.
Let’s figure out how long it will take for the average Indian in India to be as wealthy as the average Western European is today. Note that all numbers are adjusted for inflation, so the numbers are comparable. India’s current GDP per capita is $3,000, let’s say that real output per person there grows at 5% per year. Using the rule of 70, how many years will it take for India to reach Italy’s current level of GDP per capita, about $24,000 per year?
Scenario: It is the year 2035, and many people in the United States are very happy with the state of the economy. Real GDP has risen steadily over the past year, unemployment is low, and workers are confident they will continue to be employed. People are buying homes, refrigerators, cars, and everyday goods. Inflation is rising though, and people are concerned that prices may be rising faster than their incomes. Nonetheless, the stock market is rising and people remain confident. Which of the following fiscal policy combinations by Congress would be appropriate to address this economic scenario? Increase both taxes and government spending at the same time Decrease both taxes and government spending at the same time Increase taxes and decrease government spending Decrease taxes and increase government spending
Suppose the United States moved from the current pay-as-you-go Social Security system to a fully funded one and financed the transition without additional government borrowing. How would the shift to a fully funded system affect the level and the rate of growth of output per worker in the long run? This will the saving rate. In the long run, it will lead to a level of output per worker and the growth rate of output per worker. A. increase; higher; have no effect on B. decrease; higher; have no effect on C. increase; higher; increase ○ D. decrease; lower; decrease
Using data from Table 19.5 how much of the nominal GDP growth from 1980 to 1990 was real GDP and how much was inflation?
A converging economy is one that Group of answer choices is classified as a high-income country, setting the benchmark for economic growth does not experience inflation has the capacity to catch up with leaders in technology will probably be politically less tolerant of inflation than high-income countries
If the future leader of our country will use the ideas and principles of Marxism, how can it possibly affect the following:1. Filipino people2. Society3. Philippine economy4. Philippine government
Small differences in growth rates in the size of the economy, over several decades, will result in big differences in the size of the economy. Pretend we start in 1950 and the U.S. growth in real GDP has been around 3.15%. This has resulted in real GDP growing 8 times over this 70-year period (1950 to 2020). If real GDP growth had been 4.0%, real GDP would be times larger. a. 8 (about the same growth as with 3.15% growth) b. 10 С. 14 d. 16
If a country's initial real GDP is $54,504 and its yearly growth rate of GDP is 3.9%, use the Rule of 70 to determine approximately how many years it would take for this economy to double its GDP. Round your answer to two digits after the decimal.