Business, 08.01.2020 03:31 luc58

Under what circumstances is it most clear that the government should pursue neither fiscal nor monetary policy?
a. there is no inflation and the unemployment rate equal the target rate of unemployment.
b. unemployment rate exceeds the target rate of unemployment.
c. the economy is experiencing deflation.
d. the economy is below potential output.

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Answer from: MidnightDuel

A. There is no inflation and the unemployment rate equal the target rate of unemployment.

Explanation:

The governments, through its agencies, pursue monetary and physical polices to achieve its economic objectives. The government's economic goals are include maintaining stable prices and achieving steady and sustainable economic growth.

During periods of high economic growth, industries create job opportunities resulting in low rates of unemployment. Should the growth decline leading to an increase in unemployment, the government employs expansionary monetary and fiscal policies to stimulate growth. Inflation leads to high prices and reduced purchasing power. Fiscal and monetary tools are used should reports indicate that inflation is below or above its target level.

When growth is steady, and inflation is at the desired level, the government does not need to pursue either the monetary or fiscal policies.

Answer from: Quest

1 all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

Answer from: Quest

The correct answer for this question would be letter choice a) simulating the speech conditions or the first option.

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