« previous next »

Author Question: Explain why expenditure switching and expenditure reducing policies need to be used together. ... (Read 83 times)

silviawilliams41

  • Hero Member
  • *****
  • Posts: 560
on: Jun 30, 2018
Explain why expenditure switching and expenditure reducing policies need to be used together.
 
  What will be an ideal response?

Question 2

Nations that have only a single abundant resource face significant risks, even when that resource is highly valued.
 
  Indicate whether the statement is true or false


rosiehomeworddo

  • Sr. Member
  • ****
  • Posts: 306
Reply #1 on: Jun 30, 2018
Answer to Question 1

Policies that switch spending to domestic goods drive up aggregate demand, which is inflationary unless the economy is in the horizontal part of the aggregate supply curve. Expenditure reductions on their own are recessionary because they reduce aggregate demand without switching the composition of demand toward domestic producers. Thus to be successful, the policies must be used together.

Answer to Question 2

TRUE


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Interferon was scarce and expensive until 1980, when the interferon gene was inserted into bacteria using recombinant DNA technology, allowing for mass cultivation and purification from bacterial cultures.

Did you know?

When blood is deoxygenated and flowing back to the heart through the veins, it is dark reddish-blue in color. Blood in the arteries that is oxygenated and flowing out to the body is bright red. Whereas arterial blood comes out in spurts, venous blood flows.

Did you know?

If you use artificial sweeteners, such as cyclamates, your eyes may be more sensitive to light. Other factors that will make your eyes more sensitive to light include use of antibiotics, oral contraceptives, hypertension medications, diuretics, and antidiabetic medications.

Did you know?

Certain rare plants containing cyanide include apricot pits and a type of potato called cassava. Fortunately, only chronic or massive ingestion of any of these plants can lead to serious poisoning.

Did you know?

The first war in which wide-scale use of anesthetics occurred was the Civil War, and 80% of all wounds were in the extremities.

Paland and Lynch demonstrated the importance of sexual reproduction in reducing the frequency of mal Paland and Lynch demonstrated the importance of sexual reproduction in reducing the frequency of mal
Inverse Relation Between IQ and Disease. Could this explain the Flynn effect? Inverse Relation Between IQ and Disease. Could this explain the Flynn effect?
PEPCK isozymes provide alternative routes to PEP and cytoplasmic reducing equivalents PEPCK isozymes provide alternative routes to PEP and cytoplasmic reducing equivalents
Social scientists have not done well at devising theories to explain lovely romantic moments Social scientists have not done well at devising theories to explain lovely romantic moments
Explain how it can be desirable from an intertemporal perspective for a country run a current ... Explain how it can be desirable from an intertemporal perspective for a country run a current ...
Explain the myogenic autoregulation of the glomerular filtration rate Explain the myogenic autoregulation of the glomerular filtration rate
Video: Protein catabolism - deamination

For a complete list of videos, visit our video library