Discuss the characteristics of a recession

(6 points) XYZ Company sponsors a defined benefit pension plan. (a) (2 points) Describe the advantages of implementing a glide path strategy. (b) (2 points) Describe the considerations in designing and implementing a glide path strategy. (c) (2 points) Critique glide path strategies from a financial economics perspective.(a) (5 points) Explain why public pension plans tend to be underfunded. The pension department of a government that sponsors a defined benefit pension plan is considering the following strategies: (i) Implementing better asset/liability matching (ii) Optimizing the amount of equity exposure in the plan (b) (2 points) Describe how these strategies could improve the funded status of the plan.Explain what happens in a perfectly competitive in the short run and long run with regard to the firms' profits. What is the condition for allocative efficiencv? How can a firm earn greater profits when marginal revenue exceeds marginal cost? Describe the conditions under which; I A firm should increase production; I Afirrn should decrease production; - Afirrn should continue producing; Discuss the advantages of the Aggregate Expenditure Macro Model over the Circular Flow Model? 4 points) Describe how each of the following regulatory incentives can promote counter-cyclicality of funding rules for defined benefit pension plans: (i) Avoid excess reliance on current market values (ii) Allow appropriate levels of overfunding through flexible tax ceilings (iii) Limit contribution holidays and access to surplus (iv) Encourage stability of long-term contribution patterns through appropriate actuarial methods