What is the best approach to managing the economy, supply-side or demand-side economics? There are two...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
What is the best approach to managing the economy, supply-side or demand-side economics? There are two schools of thought on how to managing the economy. The first is demand-side economics which also the Keynesian approach. This approach maintains that the demand for products and services drives the economy as such economic policies should focus on the aggregate demand curve. The other approach is called supply-side economics or more popularly referred to as Reaganomics. In this trickle-down approach, it is postulated that the production of goods and services is what drives the economy with the focus on the aggregate supply curve. Both fiscal and monetary policies have the potential to stimulate change in either the aggregated demand or the aggregate supply curves. In your initial post defend which approach should be used to (ensure to include in your subject line, which approach you are defending): 1. Restore the economy that is in a recession. 2. Identify the challenges that may be encountered in the approach you selected. Your initial post must include one source using correct APA citation. What is the best approach to managing the economy, supply-side or demand-side economics? There are two schools of thought on how to managing the economy. The first is demand-side economics which also the Keynesian approach. This approach maintains that the demand for products and services drives the economy as such economic policies should focus on the aggregate demand curve. The other approach is called supply-side economics or more popularly referred to as Reaganomics. In this trickle-down approach, it is postulated that the production of goods and services is what drives the economy with the focus on the aggregate supply curve. Both fiscal and monetary policies have the potential to stimulate change in either the aggregated demand or the aggregate supply curves. In your initial post defend which approach should be used to (ensure to include in your subject line, which approach you are defending): 1. Restore the economy that is in a recession. 2. Identify the challenges that may be encountered in the approach you selected. Your initial post must include one source using correct APA citation.
Expert Answer:
Answer rating: 100% (QA)
Subject Line Defending DemandSide Economics for Restoring the Economy in a Recession In a recessionary period demandside economics also known as Keynesian economics is a more suitable approach for res... View the full answer
Related Book For
Business Law With UCC Applications
ISBN: 9780073524955
13th Edition
Authors: Gordon Brown, Paul Sukys
Posted Date:
Students also viewed these economics questions
-
What do shareholders essentially own in a company? The net assets and net earnings of the company Only the assets of the company Only the net earnings of the company
-
List three specific parts of the Case Guide, Objectives and Strategy Section (See below) that you had the most difficulty understanding. Describe your current understanding of these parts. Provide...
-
On May 22, 2012, the audit firm of Brock, Schechter & Polakoff LLP (hereafter BSP) was censured and fined $20,000 by the PCAOB in relation to its audits of public companies located in Taiwan and...
-
How does the organization's mission, vision, values, and strategies shapes the organizational culture and develop culture for change?
-
Consider the following network. ISP B provides national backbone service to regional ISP A. ISP C provides national backbone service to regional ISP D. Each ISP consists of one AS. Band C peer with...
-
Write a VHDL description for a circuit that accepts a four-bit input and outputs true if the input is a multiple of 3 (3, 6, 9, 12, or 15). Describe why the approach you chose (case, concurrent...
-
The Basel Accords have had a great impact on the banking industry. Describe these and explain their significance to the ordinary person.
-
Scully Corporation holds enough stock in company A and company B to give it voting control of both firms. Consider the accompanying simplified balance sheets for these companies. a. What percentage...
-
In distributor operations, the total cost approach emphasizes how the components interact together in a system that can improve overall efficiency and cost effectiveness if done correctly. 1) Discuss...
-
Julie Whiteweiler made $930 this week. Only social security (fully taxable) and federal income taxes attach to her pay. Whiteweiler contributes $100 each week to her company's 401(k) plan and has $25...
-
What amount of total operating income can Gonzalez A/C and Heating expect if sales of units fall by 30%? Assume Gonzalez A/C and Heating only has one unit that it sells. Gonzalez A/C and Heating -...
-
1. What is the value of the Upper Control Limit (UCL) for the p-chart? 2. What is the value of the Lower Control Limit (LCL) for the p-chart? 3. Is the process in control? 4. Use the UCL and the LCL...
-
How would you design a schema for a multi-dimensional data warehouse to support complex analytical queries and OLAP operations?
-
Consider the "Not-So-Simple-Substitution" cipher, where the shift size could be arbitrary. Write a program (using a programming language of your choice) that can cryptanalyze this cipher. Your...
-
(6%) Problem 9: Soda from a mg = 12 oz can at temperature Ts = 11C is poured in its entirety into a glass containing a mass m = 0.17 kg amount of ice at temperature T = -17C. Assume that ice and...
-
The American Nurses Association's (ANA) Standards of Practice does not allow the LPN/LVN to work independently; rather they practice under the supervision of an RN. The nursing process is used in the...
-
What are the current break even sales of Zelda? How is this number to be interpreted? Q2. Under which conditions, i.e. for which of the two possible new selling prices, should the proposed campaign...
-
An investor sells a European call on a share for $4. The stock price is $47 and the strike price is $50. Under what circumstances does the investor make a profit? Under what circumstances will the...
-
Objectives of financial reporting to external investors and creditors include preparing information about all of the following except: a. Information used to determine which products to produce. b....
-
What is a code of ethics, and how do such codes add to the integrity of accounting information?
-
What is meant by the auditors near-privity relationship? How does this differ from the privity relationship with a client with respect to establishing an auditors legal liability to a client?
Study smarter with the SolutionInn App