1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
pochemuha
4 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]4 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.

You might be interested in
Company had 200 units of inventory on hand at the end of the year. These were recorded at a cost of $12 each using the last-in,
Georgia [21]

Answer:

Debited by $400

Explanation:

Calculation for the Cost of Goods Sold

Using this formula

Cost of Goods Sold= Inventory on hand*(Cost-Current replacement cost)

Let plug in the formula

Cost of Goods Sold=200 units * ($12 - $10)

Cost of Goods Sold= 200 units*2

Cost of Goods Sold = $400 Debited

Therefore the Cost of Goods Sold will be:$400 Debited

8 0
3 years ago
Is illuminati confirmed
Misha Larkins [42]
No it is not’ people say it’s real but no don’t believe that
7 0
3 years ago
Read 2 more answers
Discuss any 5 measures introduced by the government to fight poverty in south Africa​
Sergeeva-Olga [200]

Answer:

<h3>⭐Programmes that will lessen poverty in the long term include: education and capacity development, land redistribution, promoting economic development and job creation, building houses, providing water, sanitation and electricity, and building schools and clinics.</h3>
5 0
3 years ago
Demand for food doesn't change in response to a change in price. Why? 
Butoxors [25]
The price of elasticity of the product maybe considered inelastic since there is little to no responsiveness to the change in price of the product. A factor or reason can be that it is a necessity so persons still have to buy the product no matter the change in price.
7 0
3 years ago
Read 2 more answers
A bond that is initially sold primarily in countries other than the country of the currency in which the issue is denominated is
Murljashka [212]

International bond that is sold primarily in countries other than the country of the currency in which the issue is denominated.

<h3 /><h3>What is Eurobond?</h3>

A Eurobond is a debt instrument that's denominated in a currency other than the home currency of the country or market in which it is issued.

Eurobonds are frequently grouped together by the currency in which they are denominated, such as Eurodollar or Euro-yen bonds.

Eurobonds are the bonds denominated in a currency other than that of the country in which they are issued.

A bond denominated in Japanese Yen and issued in the UK, or a bond denominated in US dollars and issued in France or the UK are examples of Eurobonds.

To learn more about Eurobond, refer to:

brainly.com/question/26271508

#SPJ4

5 0
1 year ago
Other questions:
  • Compute the annual dollar changes and percent changes for each of the following accounts. (Round percent change to one decimal p
    8·1 answer
  • The net present value: Multiple Choice decreases as the required rate of return increases. is equal to the initial investment wh
    12·1 answer
  • Suppose that a country experiences growth strongly biased toward its export, cloth, Group of answer choices this will tend to im
    9·1 answer
  • John Hernandez is 24 years old and has saved enough money to fund an adequate emergency fund. In addition, he has saved $5,600 t
    6·2 answers
  • Which function would you use to change the appearance of data in a cell from decimal to percentage?
    15·2 answers
  • Gina, a minor, enters into a contract to buy a tractor from herb, an adult. the deal is set aside. restoring herb to the positio
    6·1 answer
  • Daryl, the warehouse manager for Everything Paper, Inc., tells Hailey and Roberta that three pallets of paper need to be taken t
    12·2 answers
  • You are considering purchasing stock in Canyon Echo. You feel the company will increase its dividend at 3.9 percent indefinitely
    9·1 answer
  • What impression does it give if you are text messaging or listening to music while waiting to be called into an interview?
    8·1 answer
  • You are considering investing $1,000 in a T-bill that pays 0.05 and a risky portfolio, P, constructed with 2 risky securities, X
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!