Purchase Solution

Feedback Rule

Not what you're looking for?

Ask Custom Question

If every time real GDP exceeds potential GDP, contractionary policy is used and whenever real GDP is less than potential GDP, expansionary policy is ised. GDP equal potential GDP and then aggregate demand increase. As a consequence of this policy action taken, what would the results be...

Not sure if expansionary policy will decrease unemployment, or it would lower the price level from what it would otherwise be.

Purchase this Solution
Solution Summary

The solution answers the question below in great detail.

Solution Preview

The answer depends on the framework you are trying to use. I am assuming that you are using the Keynesian framework. According ...

Purchase this Solution
Free BrainMass Quizzes
Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

View More Free Quizzes
Related BrainMass Solutions

  • Transfer Function Analysis for a Unity Feedback System

    With K=2 known, we can use Routh-Hurwitz rule to decide the range of alpha. For this second order system, we require 1 + K*alpha > 0 to ensure stability by Routh-Hurwitz rule, which means alpha > - 1/2.

  • Statistics: Conducting a One-Way ANOVA

    Critical Value and Decision Rule: With a significance level of 0.05, Critical F = 4.256. Therefore, the decision rule for rejecting the null hypothesis is given as: reject Ho if the F-statistic > 4.256.

  • Analyzing the Circuit

    These rules apply for a negative feedback op-amp that is not saturated (that is Vout

  • target exchange rate

    The Taylor Rule is an example of a. a feedback-rule policy. b. discretionary monetary policy. c. a fixed rule. d. an activist rule (b.

  • chain rule

    Feedback is always appreciated. I hope this helps! Thanks again, Yinon The chain rule is reiterated.

  • Feedback Loops for Whole Foods Market

    Because the company has a rule limiting executive pay to 14 times the average pay of frontline workers, employees can always rest assured that they are able to analyze if this rule is being adhered to.

  • Accounting Qualitative Characteristics

    Feedback value (c) Imperative for providing comparisons of a company from period to period. Consistency (d) Ignores the economic consequences of a standard or rule.

  • Radioactive element decays

    Feedback is always appreciated. The expert examines radioactive element decays.

  • Clinical Decision Support systems for Evidence Based Medicine Practice

    The System Managers actively seek user feedback with regularly scheduled meetings. This feedback is critical to both creating a user-friendly system and addressing problems early.

  • Fed's policy instruments

    If the Fed follows a feedback-rule monetary policy and aggregate demand decreases, the Fed a. increases the growth rate of the quantity of money. b. does not change the quantity of money. c. decreases the growth rate of the quantity of money. d.

View More Related Solutions