calculate the following recessionary gap =$18 mps=.10 mpc=.90
I calculated the recessionary gap and I got 45,236
huh?? What do you want to calculate? and have you presented all the information needed to solve ?
I need help with a hw question on macroeconomics...
What kind of monetary policy is the FED using now in Summer of 2007. Why is the FED using this type of policy? How does it expect this policy to bring about the desired effect on the economy.
Can you help me
Of course, I would be happy to help you with your macroeconomics homework question!
In order to determine the kind of monetary policy the Federal Reserve (or FED) is using in the summer of 2007, we need to consider the economic conditions of that period. The summer of 2007 falls before the global financial crisis in 2008, so monetary policy at that time was likely oriented towards maintaining stable economic growth and controlling inflation.
One type of monetary policy that the FED can use is expansionary monetary policy. This policy aims to stimulate economic activity and increase aggregate demand in order to fight recession or slow economic growth. Expansionary monetary policy is typically implemented through lowering interest rates, increasing the money supply, and easing access to credit.
Another type of monetary policy is contractionary monetary policy. This policy is used when inflation is a concern and aims to slow down economic activity and decrease aggregate demand. Contractionary monetary policy is usually implemented through raising interest rates, reducing the money supply, and tightening access to credit.
To determine the specific policy the FED was using in the summer of 2007, it would be necessary to research historical data and reports from that time period. This could include analyzing FED communications, policy statements, and interest rate decisions during that period.
In terms of the expected effect on the economy, expansionary monetary policy in the summer of 2007 would have been aimed at stimulating economic growth, encouraging borrowing and spending, and reducing unemployment. The FED may have expected that lower interest rates and increased access to credit would encourage businesses and households to invest and spend more, thereby boosting economic activity.
It's important to note that without specific data from that time period, we can only speculate on the actual policy stance and its expected impact. Therefore, conducting further research or referring to credible sources from that time period would provide more accurate information about the FED's monetary policy in the summer of 2007 and its desired effects on the economy.