Suppose as a professional economist you are asked to take part in a debate about the wisdom of pursuing discretionary fiscal policy versus relying on automatic stabilizers. Outline some of the pros and cons for each side of the debate.
1. List the three basic questions of economics.
2. About how many business firms in the U.S. are proprietorships?
3. List the four types of investments.
4. Identify the government department that compiles the statistics on unemployment.
5. List the three automatic stabilizers that are built i
1. According to Keynes, if aggregate demand is too high and an inflationary gap is beginning to develop in the economy, fiscal policy should be contractionary.
3. The elimination of automatic stabilizers would most likely increase the need for more fiscal policy prescriptio
Examine the contribution that automatic stabilizers play in creating a stable economy.
Give examples of the automatic stabilizers and use them to illustrate their significance. Why is there an interest in using fiscal policy to stabilize the economy when the automatic stabilizers are available?
(1) Discuss how Gross Domestic Product is calculated using the expenditure and the income approach. Explain the difference between Real and Nominal GDP.
Research the most recent data for REAL GDP growth in the US (www.bea.gov).
(2) Suppose an economy is going through a Recession -what type of Fiscal Policy needs to be imple
1. If f(x)=2x-3 and g(x)=x2+1, find each of the following:
2. Let f(x)=x2+2 and g(x)=square root of 1-x2.
a) Find the domain and range of f and g.
b) Are the functions of f g and g f defined?
3. Given F(x)=cubed root of x+5, find functions f and g such that F=f g. Explain the answer.