How are Automatic Stabilizers Used to Combat Inflation? In today’s economy‚ there are devices present called automatic stabilizers. Automatic stabilizers‚ are mechanisms which aid in the correction of an economic problem without the interference of anyone or anything. They are perhaps most useful to combat demand - pull inflation. Demand - pull inflation‚ is when prices rise because the economy cannot produce enough goods to satiate the economy. An automatic stabilizer‚ that is beneficial
Premium Government spending Tax Progressive tax
supporters of slavery used legal‚ religious‚ and economic-2-arguments to defend the institution‚ they were simply accustomed to the lifestyle slavery provided for them and they weren ’t going to let it go without a fight. The supporters of slavery knew how to defend the institution well‚ especially when it came to legal rights. How could they protect the institution of slavery in their favor while using something that was common ground with the North as well? Southerners used the common ground of
Premium Slavery in the United States American Civil War Slavery
How monetary policy can raise the level of aggregate demand in the short run. Introduction Monetary policy is the process by which the monetary authority of a country controls the supply of money‚ usually targeting a rate of the interest for the purpose of promoting economic grown and stability. ( Wikipedia ) In the short run‚ monetary policy affects the lever of output as its compositions can also affects the lever of output. An increase in money leads to a decrease in interest rates and
Free Monetary policy Inflation Supply and demand
Assess the reasons why Thatcher’s economic policies were controversial There is little which unites Thatcher’s passionate supporters‚ and equally passionate critics. However‚ both camps would agree that she was‚ without question‚ one of the most controversial prime ministers the UK has seen‚ and her economic policies were at the heart of that controversy. She instituted an economic revolution in the UK‚ bringing the post-war consensus to a crashing halt‚ and replacing it with a free-market ideology
Premium Margaret Thatcher Conservative Party Prime Minister of the United Kingdom
To what extent can Economics be considered a Science? The issue of categorizing fields of academia truly “scientific” is invariably complex‚ leading to much debate. Matters such as defining what Science actually is‚ how to judge what can satisfy such a definition and the importance of beneficial discoveries all lead to further unsolved arguments which must be understood in order to make any kind of judgment. For economics‚ there is the argument that broad assumptions lead to imprecise data‚ that
Premium Scientific method Science Economics
University: Course: Tutor: Date: The missing link between Economic theory and environmental policy Environmental policy is a course of action taken to manage the adverse effects of human activities on the environment. Such actions may be designed to prevent‚ reduce or mitigate harmful effects on the human ecosystem. This is intended to promote sustainable practices on the environment which in turn promote economic development. Economic theory involves the production‚ distribution and consumption
Premium Environmentalism Economics Pollution
group of individuals elected by the people of the country to represent us based on our interests and to give us a voice for how we are governed‚ this protects our freedom. This is why Congress has the power to pass laws and to regulate the president’s power. Some of the key powers granted to congress are; lay and collect taxes‚ money suitable for the specific purposes‚ regulate commerce‚ establish rules on naturalization‚ declare war and raise and support armies. Representative democracy is not
Premium United States Congress United States United States Constitution
The fiscal responsibility legislation has been considered as the fiscal profligacy by all economic experts. New Zealand was the first exemplar of this particular act in the year 1994 and is cited as the country that has had a successful outcome of this law. This Fiscal Responsibility Act has been accepted by many experts as a model‚ and from an economist’s point of view‚ it is conceptually and theoretically elegant. However it is very important to highlight that the enactment was passed by a government
Premium United States Management Finance
The Monetary‚ Fiscal and External Trade Policy in face of the Global Slowdown: The Indian Context The global economic outlook deteriorated sharply over the last quarter. In a sign of the ferocity of the down turn‚ the IMF made a marked downward revision of its estimate for global growth in 2009 in purchasing power parity terms – from its forecast of 3.0 per cent made in October 2008 to 0.5 per cent in January 2009. In market exchange rate terms‚ the downturn is sharper – global GDP is projected
Premium Monetary policy Central bank Foreign exchange market
Fiscal cliff‚ a seemingly disturbing new term for American’s to digest about our growing deficit problems is stirring up panic and stress for our country’s economy. A lot of American’s are worried about the future of our country and how we can deal with our increasingly scary issue of debt. Even before the United States was founded in 1776‚ we have had a debt to be paid. It has grown in towering amounts since then and now is an issue we may never get out of. The debt crisis is a result of the
Premium United States European Union United States public debt