Question

4. A. What are two ways, other than tax cuts, a Supply-Side economist would advocate addressing...

4. A. What are two ways, other than tax cuts, a Supply-Side economist would advocate addressing a recession and shift the AS curve outward? Give an example of each.

B. What are the three benefits of shifting the AS curve outward?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

There are several ways of using the supply side in combating recession. One of the most popular method is to use the tax cut to encourage work effort on the part of employees. Another method is to provide investment tax credit which helps businesses in increasing their investment in manufacturing and other economic activities so that they can increase production.. yet another method is to initiate some labour market reforms such as reduction in the power of labour union and increasing the working hours. This is again likely to aggregate supply curve to right as productivity is increased..

The benefits of shifting the aggregate supply curve to the right include lower inflation, increased GDP and no trade off between inflation and unemployment.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A. What are two ways, other than tax cuts, a Supply-Side economist would advocate addressing a...
A. What are two ways, other than tax cuts, a Supply-Side economist would advocate addressing a recession and shift the AS curve outward? Give an example of each. B. What are the three benefits of shifting the AS curve outward?
What actions would a supply-side economist advocate to increase growth in GDP without causing inflation? Give...
What actions would a supply-side economist advocate to increase growth in GDP without causing inflation? Give at least two specific policy examples.
How would the supply and or demand curve shift if a $4 tax was imposed on...
How would the supply and or demand curve shift if a $4 tax was imposed on suppliers for each unit of caviar and regular eggs sold? With visuals please explain how the tax incidence, DWL, and welfare effects differ between the two goods and why? please explain in terms of CS, PS, DWL, revenue, elasticity, etc if possible. thank you
Variables typically included in a multivariate supply function (other than the price and quantity of the...
Variables typically included in a multivariate supply function (other than the price and quantity of the item the supply function represents) are prices of other goods that use similar input resources for production, expectations, the number of suppliers, techniques of production, taxes and subsidies, and prices of input resources, weather.  Please answer the following questions about the affect changes in other variables might have on the supply of the item.  These changes will either cause supply to increase (shift right) or decrease...
QUESTION 64 Inflation occurs over time as a result of a. long-run aggregate supply increasing faster...
QUESTION 64 Inflation occurs over time as a result of a. long-run aggregate supply increasing faster than short-run aggregate supply. b. a bigger increase in aggregate demand than aggregate supply. c. a bigger increase in aggregate demand than in long-run aggregate supply. d. increases in aggregate demand. 1 points    QUESTION 65 In the short-run macroeconomic equilibrium, real GDP exceeds potential GDP. If aggregate demand does not change the a. long-run aggregate supply curve will shift rightward as the money...
Public policymakers often want to reduce the amount that people smoke. There are two ways that...
Public policymakers often want to reduce the amount that people smoke. There are two ways that policy can attempt to achieve this goal. One way to reduce smoking is to shift the demand curve for cigarettes and other tobacco products. Public service announcements, mandatory health warnings on cigarette packages, and the prohibition of cigarette advertising on television are all policies aimed at reducing the quantity of cigarettes demanded at any given price. If successful, these policies shift the demand curve...
5. In the market for loanable funds, what can cause a rise in interest rates? supply...
5. In the market for loanable funds, what can cause a rise in interest rates? supply shifting right and demand shifting right demand shifting right only supply shifting left and demand shifting right supply shifting right only 6. Which of these is an example of money being used as a store of value? A restaurant sells a large ice cream sundae and charges the customer's debit card. A customer receives $3.05 in change and returns the next day to make...
PRODUCTION HOMEWORK QUESTIONS 1. What is the marginal product of labor (MP or MPP)? Why is...
PRODUCTION HOMEWORK QUESTIONS 1. What is the marginal product of labor (MP or MPP)? Why is the curve shaped the way it is? 2. Explain and describe each of the four production relationships. 3. Indicate whether each of the following are long-run or short-run choices. Explain why. a. A law partnership signs a 5 year lease for an office complex. b. A jeans company asks its assembly-line workers to work an extra shift this week. c. A local oil refinery...
When we say "all other things equal" with regard to demand and supply, we mean that:...
When we say "all other things equal" with regard to demand and supply, we mean that: Select one: a. the market is at equilibrium. b. only one curve at a time can shift. c. factors other than price that could affect quantity demanded or supplied do not change. d. there is neither a surplus nor a shortage in the market. John lives at home and is a freshman in junior college. He quit a job that would have paid him...
Using demand and supply analysis, illustrate how each of the following scenarios would affect the equilibrium...
Using demand and supply analysis, illustrate how each of the following scenarios would affect the equilibrium price and quantity in the respective markets. The use of carefully labelled diagrams is required with an explanation. a. The introduction of a new technology reduces the cost of production for all firms in the computer market. b. A strong advertising campaign has caused the consumer to demand more Pepsi at every existing price. c. The passage of Dorian a category 5 hurricane destroys...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT