--%>
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 : Positive task of speculators in market

    A positive responsibility played through speculators within a market economy is to: (1) find out price levels for entrepreneurs. (2) predict the quantity at that long run equilibrium would be attained. (3) inform government organizations of consumer p

    		•
  • Q : Illustrate Other Things Equal revisited

    Illustrate “Other Things Equal” Revisited in Supply and Demand, and Equilibrium?

    		•
  • Q : Government expenditures on goods and

    Explain Government expenditures on goods and services and transfer payments?

    		•
  • Q : What are the dependencies in U.S. and

    What are the dependencies in U.S. and World Trade?

    		•
  • Q : Explain about the arbitrage except

    Not like speculation, there arbitrage is: (w) an activity which is generally more lucrative when conditions are favorable. (x) a profitable and relatively riskless activity. (y) the process of representing a domestic company within fo

    		•
  • Q : Case study plz find the attachment and

    plz find the attachment and dont compromise on quality,, no similarity n need to be done according to requierment...

    		•
  • Q : Individual sellers and buyers in

    Both individual sellers and buyers within perfect competition: w) can affect the market price through their own individual actions. x) can affect the market price by joining along with some of their competitors.  y) have to take the market price as a specified. z

    		•
  • Q : Elucidate redistribution of income

    Elucidate redistribution of income?

    		•
  • Q : Reducing output of other good When the

    When the production possibilities frontier in a proficient economy is not growing, raising the output of one good always needs: (i) Increasing the output price for the other good. (ii) Bigger amounts of resources. (iii) Decreasing the output of other

    		•
  • Q : What is the opportunity cost of

    What is the opportunity cost of attending college?  In 2000, nearly 80% of college-educated Americans held jobs, whereas only about 40% of those who did not finish high school held jobs.  How might this difference relate to opportunity costs?

    		•