It will be difficult to institute fiscal policy in a stabilizing manner because politicians will find

1 answer:

3 0

It will be difficult to institute fiscal policy in a stabilizing manner because politicians will find budget deficit more attractive during recession.

<h3>What is budget deficit?</h3>

Budget deficit occur when the government spending or expenditure is more than the revenue.

It will be hard to institute fiscal policy based on the fact that politicians will find budget deficit more attractive during recession in which on the other hand they will be unwilling to run budget surplus when their is an expansion.

Therefore they will find budget deficit more attractive during recession.

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Price is a concept relating to how post-deregulation transportation firms determine and impose charges for their services. which

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Answer:

The correct answer is option c.

Explanation:

The price of a product is the value of the product that is determined in the market through the working of the market forces. After deregulation, the price of any product or service such as transportation is determined in the market.

It is determined by the interaction of the demand for transportation and the supply of transportation.

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3 years ago

If a central bank wants to counter the change in the price level caused by an adverse supply shock, it could change the money su

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Aggregate demand left.

<h3>What Is a Supply Shock?</h3>

A supply shock is an unanticipated occurrence that abruptly alters the supply of a good or commodity, causing an unanticipated shift in price. Supply shocks can be positive, resulting in an increased supply, or negative, resulting in a lower supply; however, they are frequently negative. A negative (or adverse) supply shock drives up the price of a product, whereas a positive supply shock drives it down, assuming that overall demand remains constant.

A shift in the supply curve to the right caused by an increase in output and a positive supply shock lowers prices, whereas a reduction in production and a negative supply shock raises prices. Any unforeseen event that reduces output or upsets the supply chain has the potential to cause supply shocks.

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1 year ago

Suppose your firm is considering investing in a project with the cash flows shown as follows, that the required rate of return o

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The profitability index decision rule of the project equals 2.45 year and thus, the project should be accept to be embarked on.

<h3>What is a profitability index?</h3>

The rule refers to a decision-making exercise that helps to evaluate whether to proceed with a project based on its profitability.

Hence, because the profitability index decision rule of the project equals 2.45 year and thus, the project should be accept to be embarked on.