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svlad2 [7]
1 year ago
7

The experience of the great recession showed that when the economy is in a recession, from a keynesian perspective, the governme

nt can increase its spending?
Business
1 answer:
Reptile [31]1 year ago
5 0

When the economy is in a recession, from a Keynesian perspective, the government can increase its spending with minimum risk of crowding out private investment.

Keynesian macroeconomics argues that the answer to a recession is expansionary financial coverage, which includes tax cuts to stimulate consumption and funding or direct increases in government spending that might shift the aggregate call for the curve to the right.

Keynesians believe that, because expenses are particularly rigid, fluctuations in any aspect of spending—consumption, investment, or government expenditures—motivate output to change. If government spending will increase, for instance, and all other spending components continue to be constant, then the output will boom.

Keynesian economics is primarily based on two most important ideas. First, a combination call is more likely than a mixture delivers to be the primary motive of a short-run monetary event like a recession. Second, wages and charges can be sticky, and so, in a monetary downturn, unemployment can result.

Learn more about recession here brainly.com/question/532515

#SPJ4

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All of the following qualitative considerations may impact upon capital investment analysis except a.market opportunities b.manu
Murljashka [212]

All of the following qualitative considerations may impact upon capital investment analysis except manufacturing sunk cost .

Option c

<u> Explanation: </u>

In a manufacturing setup or any business environment Capital investment plays a major role. To do the long term investment and to assess the profitability the company will do a budgeting procedure is called the capital investment analysis.

The assessment of fixed assets like equipment, machines of a manufacturing sector is done by the capital investment analysis. From the above the manufacturing sunk cost is not considered for the analysis because it the money which has spent already that cannot be recovered.

4 0
3 years ago
During the course of a year, the labor force consists of the same 6,000 people. Employers have chosen not to hire 420 of these p
dybincka [34]

Answer:

5%

12%

Explanation:

Unemployment rate is the fraction of the labour force that are unemployed but are actively looking for work

Types of unemployment include:

Frictional unemployment : it is the period of time a person is unemployed from the period he leaves his current job and the time he gets another job. The 300 unemployed people are frictionally unemployed

structural unemployment : it occurs as a result of changes in the economy. These changes can be as a result of changes in technology, polices or competition . Structural unemployment tends to be permanent. The 420 unemployed people are structurally unemployed

Voluntary unemployment : e.g. worker at a fast-food restaurant who quits work and attends college.

Cyclical unemployment : occurs as a result of fluctuations in the economy

Frictional unemployment = (total frictional unemployed people / total labour force ) x 100

(300 / 6000) x 100 = 5%

Total unemployment rate = (total frictional unemployed people + total structural unemployed individuals / total labour force ) x 100

[(300 + 420) / 6000] x 100 = 12%

7 0
2 years ago
Firm b pays a constant $9.50 dividend on its stock and will maintain this dividend for the next 11 years and will then cease pay
sdas [7]

Firm b pays a constant dividend (D0) = $9.50

Number of years (N) = 11 years

Rate of return on the stock ( R ) = 11%

The share price of the stock (P0) = Present value of dividend for 11 years at 11%

P0 = D0*PVIFA (k%,n)

P0 = $9.50*PVIFA(11%,11)

P0 = $9.50*6.20625

P0 = $58.96

Hence, the price of the stock is $58.96

6 0
2 years ago
What is the typical relationship between time and interest rate?
MatroZZZ [7]
C. is the answer
hope this helps
4 0
2 years ago
Read 2 more answers
What is definition of culture?
tekilochka [14]
The detention of culture is the diversity of foods religion and heritage built into a single race built on beliefs and traditions
8 0
3 years ago
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