--%>
Assignment Help - homework help

How government might manipulate its expenditures

Explain how government might manipulate its expenditures and tax revenues to reduce unemployment?

E

Expert

Verified

To reduce unemployment, government must increase total or aggregate spending in the economy to encourage more production and employment.  It can do so by increasing its own spending on goods and services and, by reducing taxes, inducing the population to spend more.  Reduced taxes on businesses might also have a supply-side effect, allowing businesses to produce more as a result of the lower tax cost burden.  Monetary authorities should be encouraged to increase the supply of money and credit available.

   Related Questions in Business Economics

  • Q : Several determinants of demand besides

    Illustrate the several determinants of demand besides price which affect demand?

    		•
  • Q : Higher opportunity costs of attendance

    Economics professors would attribute students’ higher rates of attendance on days while examinations are administered to the: (w) intensified needs to learn valuable material. (x) higher opportunity costs of missing set relative to other schedul

    		•
  • Q : Answer the following questions based on

    The dataset used in this question contains data on 180 economics journals for the year 2000. The variable descriptions are as follows: logoclc - log of the number of library subscription loglibcit - log of the library subscription price per citation.

  • Q : Calculate Equilibrium Quantity and Price

    1. The owner of a firm calculates that next year's profit will be $1,000. Each successive year profit will increase by 10% (i.e. year 2: $1100; year 3: $1210 and so on.) At the end of the 5th year the firm could be sold for $20,000. A) if the appropriate di

    		•
  • Q : Formally adopt inflation targeting

    Question: Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment? Answer:

  • Q : Resource market for economic capital

    Janet has loaned a start-up coffee house $50,000 and predicts to earn interest from her financial investment. In circular flow model this transaction is an illustration of: (1) An exchange of her saving for interest, via a resource market for the economic capital. (2)

    		•
  • Q : Expiation of Economists for Economic

    Please help me to solve the problem of economic that is given below: Economists describe economic costs as like: (w) money outlays. (x) accounting cost. (y) opportunity cost. (z) v

    		•
  • Q : Problem regarding to intermediaries and

    Society gains from the activities of intermediaries which succeed within: (1) falling uncertainty and transaction costs for last consumers. (2) arbitrating strikes and defending workers’ rights. (3) creating productive jobs for unskilled workers

    		•
  • Q : Assertion to increase in the minimum

    Use the circular flow model to confirm this assertion for a $1 per hour increase in the minimum wage?

    		•
  • Q : Illustrate other than price many factors

    Illustrate other than price many factors determine the outcome?

    		•