MACRO ECON 6
MACRO ECON 6
6th Edition
ISBN: 9780357689820
Author: MCEACHERN
Publisher: CENGAGE L
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Chapter 16, Problem 4P

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 unemployment and the reasons for which the long lags make discretionary policy ineffective.

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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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 performance.
Hello, I sent those questions earlier and only the first one was answered. I would like help with the second and third of the assignment.    Thank you
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