The objectives of long-run growth policy andshort-run stabilization policy.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 23, Problem 1DQ

To determine

The objectives of long-run growth policy andshort-run stabilization policy.

Expert Solution & Answer

Explanation of Solution

Major objective of long-run economic growth includes capital formation, human capital investment such as education and training, and progress in new technology. Such policies aim to increase the market value of goods and services over a period of time by shifting of production function to the right. This ensures higher economic growth rate in the economy. The stabilization policies include the intervention with the expansionary and contractionary policies to stabilize the economy when the economy moves below and above the potential level of real GDP in the short run. Hence, it controls the higher unemployment or inflation will not be a problem.

Economics Concept Introduction

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?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

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.

There are two main models explained in the chapter, i.e. the big-push model and the O-ring model. How relevant are these models in describing today’s developing countries? What limitations or challenges with these models? Explain your answers!

In a developing economy that primarily relies on agriculture, the government decides to implement a series of reforms aimed at liberalizing the financial sector, including easing restrictions on foreign bank entry. What is the most likely short-term impact of these reforms on the agricultural sector's access to credit? A) Increased access to credit for the agricultural sector due to enhanced competition in the banking sector. B) Decreased access to credit for the agricultural sector as foreign banks focus on more profitable urban and industrial clients. C) No significant change in access to credit for the agricultural sector, as foreign banks have minimal impact on local lending. D) A shift in credit allocation from large agricultural businesses to small-scale farmers due to diversified lending practices of foreign banks.

Answer 2

Question

Chapter 23, Problem 1DQ

To determine

The objectives of long-run growth policy andshort-run stabilization policy.

Expert Solution & Answer

Explanation of Solution

Major objective of long-run economic growth includes capital formation, human capital investment such as education and training, and progress in new technology. Such policies aim to increase the market value of goods and services over a period of time by shifting of production function to the right. This ensures higher economic growth rate in the economy. The stabilization policies include the intervention with the expansionary and contractionary policies to stabilize the economy when the economy moves below and above the potential level of real GDP in the short run. Hence, it controls the higher unemployment or inflation will not be a problem.

Economics Concept Introduction

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?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 23, Problem 1DQ

To determine

The objectives of long-run growth policy andshort-run stabilization policy.

Expert Solution & Answer

Explanation of Solution

Major objective of long-run economic growth includes capital formation, human capital investment such as education and training, and progress in new technology. Such policies aim to increase the market value of goods and services over a period of time by shifting of production function to the right. This ensures higher economic growth rate in the economy. The stabilization policies include the intervention with the expansionary and contractionary policies to stabilize the economy when the economy moves below and above the potential level of real GDP in the short run. Hence, it controls the higher unemployment or inflation will not be a problem.

Economics Concept Introduction

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?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 23, Problem 1DQ

To determine

The objectives of long-run growth policy andshort-run stabilization policy.

Expert Solution & Answer

Explanation of Solution

Major objective of long-run economic growth includes capital formation, human capital investment such as education and training, and progress in new technology. Such policies aim to increase the market value of goods and services over a period of time by shifting of production function to the right. This ensures higher economic growth rate in the economy. The stabilization policies include the intervention with the expansionary and contractionary policies to stabilize the economy when the economy moves below and above the potential level of real GDP in the short run. Hence, it controls the higher unemployment or inflation will not be a problem.

Economics Concept Introduction

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?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 23, Problem 1DQ

To determine

The objectives of long-run growth policy andshort-run stabilization policy.

Expert Solution & Answer

Explanation of Solution

Major objective of long-run economic growth includes capital formation, human capital investment such as education and training, and progress in new technology. Such policies aim to increase the market value of goods and services over a period of time by shifting of production function to the right. This ensures higher economic growth rate in the economy. The stabilization policies include the intervention with the expansionary and contractionary policies to stabilize the economy when the economy moves below and above the potential level of real GDP in the short run. Hence, it controls the higher unemployment or inflation will not be a problem.

Economics Concept Introduction

Economic growth: Economic growth refers to an increase in the market value of goods and services over a period of time in an economy.

Answer 6

Chapter 23, Problem 1DQ

To determine

The objectives of long-run growth policy andshort-run stabilization policy.

Expert Solution & Answer

Explanation of Solution

Major objective of long-run economic growth includes capital formation, human capital investment such as education and training, and progress in new technology. Such policies aim to increase the market value of goods and services over a period of time by shifting of production function to the right. This ensures higher economic growth rate in the economy. The stabilization policies include the intervention with the expansionary and contractionary policies to stabilize the economy when the economy moves below and above the potential level of real GDP in the short run. Hence, it controls the higher unemployment or inflation will not be a problem.

Economics Concept Introduction

Economic growth: Economic growth refers to an increase in the market value of goods and services over a period of time in an economy.

Answer 7

Chapter 23, Problem 1DQ

To determine

The objectives of long-run growth policy andshort-run stabilization policy.

Answer 8

Expert Solution & Answer

Explanation of Solution

Major objective of long-run economic growth includes capital formation, human capital investment such as education and training, and progress in new technology. Such policies aim to increase the market value of goods and services over a period of time by shifting of production function to the right. This ensures higher economic growth rate in the economy. The stabilization policies include the intervention with the expansionary and contractionary policies to stabilize the economy when the economy moves below and above the potential level of real GDP in the short run. Hence, it controls the higher unemployment or inflation will not be a problem.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Economics Concept Introduction

Economic growth: Economic growth refers to an increase in the market value of goods and services over a period of time in an economy.

Answer 12

Ch. 23 - Prob. 1DQ Ch. 23 - Prob. 2DQ Ch. 23 - Prob. 3DQ Ch. 23 - Prob. 4DQ Ch. 23 - Prob. 5DQ Ch. 23 - Prob. 6DQ Ch. 23 - Prob. 1TY Ch. 23 - Prob. 2TY Ch. 23 - Prob. 3TY Ch. 23 - Prob. 4TY

The objectives of long-run growth policy andshort-run stabilization policy.

The objectives of long-run growth policy andshort-run stabilization policy.

Explanation of Solution

Want to see more full solutions like this?

Chapter 23 Solutions