The objectives of long-run growth policy andshort-run stabilization policy.
Explanation of Solution
Major objective of long-run
Economic growth: Economic growth refers to an increase in the market value of goods and services over a period of time in an economy.
Want to see more full solutions like this?
Chapter 23 Solutions
Economics: Principles & Policy
- Why governments / decision makers try to achieve the stable economic growth and lower inflation? Evaluate the macroeconomic measures, employing fiscal and/or monetary policies, which could be taken to balance these two objectives.arrow_forwardRole of government and financial intermediaries in the recovery – fiscal and monetary policies. Other factors such as global cooperation among countries in helping economic recovery.arrow_forwardContrary to what neoclassical economics has argued, many development economists believe that redistributing wealth or income can increase economic growth in developing countries. How?arrow_forward
- Examples of how monetary and fiscal policies can stimulate employment and facilitate economic growth in a country.arrow_forwardA converging economy is one that Group of answer choices is classified as a high-income country, setting the benchmark for economic growth does not experience inflation has the capacity to catch up with leaders in technology will probably be politically less tolerant of inflation than high-income countriesarrow_forwardAre Structuralists' approaches to economic growth consistent with the Harrod – Domar theories of growth? How do they differ in emphasis?arrow_forward
- A broader definition of macroeconomics and its relationship with the level of production, unemployment and inflation of a country.arrow_forwardEffect of fiscal and monetary policy on GDP growth in zimbabwearrow_forwardIn the context of development priorities, what are the relative roles of central banks , commercial banks, development banks, informal and unorganized sources of credit, and microfinance?arrow_forward
- The Lewis Theory of Economic Development is a structural change model. With the aid of the figure below, discuss the rationale of the model and how the theory proposes countries can achieve self-sustaining economic growth.arrow_forwardExplain what will happen in a nation that tries to solve a structural unemployment problem using expansionary monetary and fiscal policy. Draw one AD/AS diagram, based on the Keynesian model, for what the nation hopes will happen. Then draw a second AD/AS diagram, based on the neoclassical model, for what is more likely to happen. Is it possible to protect workers from being fired without distorting the labor market?arrow_forwardCritically comment on the current policy environment in India by evaluating any two recent policy reforms and their role in ensuring strong and sustainable growth in the countryarrow_forward
- Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning