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pochemuha
3 years ago
7

At the beginning of a recession in 2018, unemployment begins rising. Unemployment increases from 4.6% to 7.9% in 4 months. What

would a Keynesian economist specifically recommend doing?
Business
1 answer:
Sergeeva-Olga [200]3 years ago
8 0

Answer:

Should be done: a counter cyclical or a growth-oriented  fiscal policy ,deficit spending and stabilize the aggregate demand.

Explanation:

Keynesian economy is a macroeconomic theory based on the views of the 20th century British economist John Maynard Keynes. Keynes' economy advocates a mixed economy where the private sector is predominant but the state and the public sector play a major role. According to the Keynesian theory, the sum of all the micro-economic behaviors shown by all individuals and businesses results in inefficiency and the economy operates at a level below its potential output and growth. When total demand for products is insufficient, the economy enters a crisis and unnecessary unemployment arises due to defensive behavior of the producers. In such cases, the government may pursue policies to increase aggregate demand, and as a result may accelerate economic activities and reduce unemployment. Most Keynesian propose policies to stabilize the business cycle. For example, if the unemployment level is too high, the state can pursue a growth-oriented monetary policy.

Keynes was thinking of reviving the economy with low interest and state investments as a solution to the Great Depression. The government increases investment income and consequently consumption, resulting in more production and investment, resulting in increased consumption again. The first economic stimulus investment triggers a series of events and the subsequent investment provides a much tougher economic efficiency. According to Keynes, money supply is provided by monetary authority (eg central bank) and monetary policy affects prices. When interest rates fall below this normal rate, investors avoid buying bonds and prefer to hold cash in anticipation of higher rates. When interest rates are above this normal rate, they tend to buy bonds with the expectation that they will fall. Therefore, it can be said that there is a negative relationship between money demand and interest rate.

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A ________ management system often consists of modules such as budget planning, debt management, travel and expense management,
sergejj [24]

Answer:

Financial

Explanation:

Financial management refers to managing an organization or program's resources to meet it's goals and objectives as quickly as possible by making use of resources to carry out planned activities. A financial management system is the approach employed by an organization to govern its income, expenses and assets with the sole purpose of attaining sustability.

8 0
3 years ago
Security P is a preferred stock and Security Z is a zero coupon bond that has 11 years remaining until maturity. Both securities
uranmaximum [27]

The duration of Security P based on the info given will be 11 years.

<h3>How to calculate the time?</h3>

From the information given, Security P is a preferred stock and Security Z is a zero coupon bond that has 11 years remaining until maturity.

Therefore, the duration will be:

= (1 + y)/y

= (1 + 0.1)/0.1

= 1.1/0.1

= 11 years

Learn more about security on:

brainly.com/question/25720881

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6 0
2 years ago
Private enterprise is run mainly to?
saw5 [17]
Most private enterprise mainly run to gain profit
8 0
2 years ago
Assume you have a business that provides products to older people. Looking ahead, you have reason to expect ________Assume you h
butalik [34]

Answer:

increasing sales, because your target population is increasing in size.

Explanation:

There will definitely be a bright future in the business because the targeted population which happens to be the elderly ones keeps increasing in size, hence, there will be increase in sales and in turn there will be increase in turnover which is a good thing for the business.

6 0
2 years ago
According to the National Business Ethics survey, if senior management in a company wants to boost or ensure ________ ________,
liq [111]

Answer:

- Ethical Behavior.

Explanation:

The National Business Ethics Survey revealed that senior management is required to <u>begin with taking the responsibility and enforcement in case they are willing to improve 'ethical behavior' in the company</u>. Ethics begins with taking the accountability of the actions or decisions taken as it encourages fellow employees to follow the norms or policies of the company. It promotes maintaining the moral conduct and standards of the company. This would assist in preventing discrimination and fulfilling corporate responsibilities.

6 0
3 years ago
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