Budget deficits should be avoided, even if the economy is below potential, because they reduce saving and
Question:
"Budget deficits should be avoided, even if the economy is below potential, because they reduce saving and lead to lower growth." Does this policy directive follow from the short-run or the long-run framework? Explain your answer.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 57% (14 reviews)
It follows from the longrun framework because in this framework deficits are w...View the full answer
Answered By
Sarah Khan
My core expertise are:
-_ Finance
-_ Business
-_ Management
-_ Marketing Management
-_ Financial Management
-_ Corporate Finance
-_ HRM etc...
I have 7+ years of experience as an online tutor. I have hands-on experience in handling:
-_ Academic Papers
-_ Research Paper
-_ Dissertation Paper
-_ Case study analysis
-_ Research Proposals
-_ Business Plan
-_ Complexed financial calculations in excel
-_ Home Work Assistance
-_ PPT
-_ Thesis Paper
-_ Capstone Papers
-_ Essay Writing etc...
5.00+
91+ Reviews
92+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
True or False: 1. Starting with the economy initially at full-employment equilibrium, a sudden increase in oil prices would result in a recessionary gap. 2. Holding AD constant, falling oil prices...
-
In 2003, as the U.S. economy finally seemed poised to exit its ongoing recession, the Fed began to worry about a "soft patch" in the economy, in particular the possibility of a deflation. As a...
-
Holmes Corporation is a leading designer and manufacturer of material handling and processing equipment for heavy industry in the United States and abroad. Its sales have more than doubled, and its...
-
Design a difference amplifier to have a gain of 4 and a common-mode input resistance of 20 k at each input.
-
Given P (A) = 0.3 and P (B) = 0.4: (a) If A and B are mutually exclusive events, compute P (A or B). (b) If P (A and B) 5 0.1, compute P (A or B).
-
Multiple-Step Income Statement Gaynor Corporations partial income statement is as follows: Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,200,000 Cost of sales . . . . . . . . . . ....
-
How have historical trends in society influenced a development in management and organization theory? Provide an example. LO.1
-
In Problem 11-27, a linear program was developed for the shortest-route problem. Modify this linear program to make the changes detailed in Problem 11-26. Solve this problem and compare it to the...
-
A liability would not include an obligation to
-
Can babies reason probabilistically? A study investigates this by showing ten- to twelve-month-old infants two jars of lollipop shaped objects colored pink or black. Each infant first crawled or...
-
To help understand the distributional consequences of the tax cuts advocated by many conservative politicians, answer the following: a. What income groups have the largest marginal propensity to...
-
International issues aside, what limits governments ability to undertake monetary or fiscal policy? (Austrian)
-
Special order decision analysis Karoom Manufacturing recently built a large addition to its manufacturing facilities. Company management expects to utilize all of the new production space within two...
-
Listed in the accompanying table are waiting times (seconds) of observed cars at a Delaware inspection station. The data from two waiting lines are real observations, and the data from the sir line...
-
Franklin Prepared Foods (FPF) sells three varieties of microwaveable meals with the following prices and costs: Variable Cost Fixed Cost per Meat Fish Vegetarian Entire firm Selling Price per Case: $...
-
Isabella is a 14-year-old Hispanic bisexual female who has come into the Department of Child Safety (DCS) care due to neglect. Isabella's mother, Martina, is 35 years old, a single mother, has an...
-
Jeff is able to ride a bicycle although he hasn't ridden one for a few years, thanks to his: ( A ) procedural memory ( B ) episodic memory C ) semantic memory ( D ) cognitive memory
-
1. Allen Young has always been proud of his personal investment strategies and has done very well over the past several years. He invests primarily in the stock market. Over the past several months,...
-
Construct a confusion matrix using the accompanying data set that lists actual and predicted class memberships for 10 observations.
-
Determine which of the following limits exist. Compute the limits that exist. lim x-0 1- + 3x X
-
1. Under a system of marketable pollution permits, a firm with ___________ (low/high) abatement costs will buy permits from a firm with ___________ (low/high) abatement costs. 2. Arrow up or down: A...
-
Suppose you want to find estimates of the elasticities of demand (own price, income, cross-price) for orange juice. The U.S. Department of Agriculture has a Web site that provides estimates of demand...
-
We can use the price-change formula to predict the effects of a change in demand on equilibrium prices in the short run and long run. Suppose a national advertising campaign increases the demand for...
-
What general conclusions can you draw about your companys liquidity, solvency and productivity based on your ratio calculations. Working Capital 2017 = $9,994 M 2016 = $10,673 M Current Ratio 2017 =...
-
Tami Tyler opened Tami's Creations, Incorporated, a small manufacturing company, at the beginning of the year. Getting the company through its first quarter of operations placed a considerable strain...
-
5. The current spot exchange rate is 0.95/$ and the three-month forward rate is 0.91/$. Based on your analysis of the exchange rate, you are pretty confident that the spot exchange rate will be...
Study smarter with the SolutionInn App