Table of Contents
- 1 What government action would most likely be most beneficial in reducing structural unemployment?
- 2 What action is the Federal Reserve most likely to take if it is worried about increasing inflation due to extremely rapid economic expansion?
- 3 How does government spending affect unemployment?
- 4 What causes unemployment rate to increase?
- 5 How does the Federal Reserve maximize employment?
- 6 What action is the Federal Reserve most likely to take if it is worried about possible deflation due to extremely rapid economic contraction?
- 7 Which of these is most likely to occur after the government increases taxes?
What government action would most likely be most beneficial in reducing structural unemployment?
Policy suggestions to reduce structural unemployment include providing government training programs to the structurally unemployed, paying subsidies to firms that provide training to displaced workers, helping the structurally unemployed to relocate to areas where jobs exist, and inducing prospective workers to …
What action is the Federal Reserve most likely to take if it is worried about increasing inflation due to extremely rapid economic expansion?
What action is the Federal Reserve MOST likely to take if it is worried about increasing inflation due to extremely rapid economic expansion? If the Fed is worried about inflation and an economy that is expanding too rapidly, it needs to reduce the available money supply and reduce the level of loans being made.
Which action would the Federal Reserve Board most likely take to stimulate economic growth?
The three key actions by the Fed to expand the economy include a decreased discount rate, buying government securities, and lowered reserve ratio.
How does government spending affect unemployment?
The findings of the study revealed that an increase in government consumption expenditures results in an increase in unemployment whereas a rise in government investment expenditures results in a reduction in unemployment, holding all other variables constant.
What causes unemployment rate to increase?
These include: economic growth; cyclical and structural factors; demographics; education and training; innovation; labor unions; and industry consolidation In addition to macroeconomic and individual firm-related factors, there are individual-related factors that influence the risk of unemployment.
Which of the following would be most likely to maintain that spending increases and larger budget deficits would help promote recovery from the recession of 2008 2009?
Which of the following would be most likely to maintain that spending increases and larger budget deficits would help promote recovery from the recession of 2008-2009? -higher interest rates and lower private investment under the crowding-out view.
How does the Federal Reserve maximize employment?
The Fed’s reasoning is that this inflation target, by ensuring price stability, creates a stable economic environment able to foster the goal of maximum employment. Stable prices and long-term interest rates are Federal Reserve goals that directly influence each other, making them essentially one mandate.
What action is the Federal Reserve most likely to take if it is worried about possible deflation due to extremely rapid economic contraction?
What action is the Federal Reserve MOST likely to take if it is worried about possible deflation due to extremely rapid economic contraction? Decrease reserve requirements, requiring banks to retain a smaller percentage of deposited funds, therefore increasing the amount that the bank can loan.
What is one way the US government influences the economy?
The U.S. government influences economic growth and stability through the use of fiscal policy (manipulating tax rates and spending programs) and monetary policy (manipulating the amount of money in circulation). This stimulates demand and encourages economic growth. Cuts in government spending have the opposite effect.
Which of these is most likely to occur after the government increases taxes?
unit 5 econ
Question | Answer |
---|---|
which of there is MOST LIKELY to occur after the government increases taxes? | consumer spending increase |
If the federal government wants to encourage businesses and consumers to spend more money, it would MOST LIKELY… | decrease tax rate |