You Decide Gm 545 Essay

589 words - 3 pages

You Decide Exercises.
The U.S. economy has fallen into a recession. It is a severe and deep recession, and one that some economic analysts say may persist for at least another year. The unemployment rate has risen to levels not seen in over 20 years. The current unemployment rate is at 8% and is expected to rise further. The inflation rate is -2.4 percent, meaning that overall, prices are falling.
After I read all the recommendation I can conclude:
* I agree with lower interest rate as Raymond Burke said because lowering interest rates should encourage consumption and investment.
* I do not agree with rise taxes as Kathy Lee said because that means that less money go to the economy, and as consequence there will be an increase in prices and/or cut jobs.
* I do not agree with reducing government spending as Kathy Lee said because this would exacerbate the situation with more contraction in the gross domestic product.
* I do not agree to leave ...view middle of the document...


After analyzing the entire expert’s recommendations this is my recommendation on how to proceed in these circumstances.
1. The government will need to apply expansionary fiscal policy: these involve increasing government spending, increasing transfer payment (Social Security, unemployment compensation, or welfare) or decreasing taxes.
* Cutting tax makes to increase disposable income, increase consumption and increase the real DGP.
* Increasing government spending and transfer payment make to increase the equilibrium real GDP.
2. Also the government need to apply the expansionary monetary policy: these involve purchasing government bonds by the Central Bank in the open market, lowering the interest rate, lowering reserve requirement.
* Purchasing government bonds increase the amount of money in the economic
* By lowering reserve requirement the banks have more access to the reserve capital and consequently the banks are more available to lend money to the public.
* By lower interest rate the central bank makes liquidity cheaper and more accessible to the public, so increasing the money supply

References
Monetary and Fiscal Policies http://financeunleashed.blogspot.com/2007/12/monetary-and-fiscal-policies.html
Definition of Expansionary Monetary Policy eHow.com http://www.ehow.com/about_5033268_definition-expansionary-monetary-policy.html#ixzz0wyLw15x7
Expansionary Monetary Policy vs. Contractionary Monetary Policy What Effects Does Monetary Policy Have? http://economics.about.com/cs/money/a/policy.htm
Monetary and Fiscal Policy http://www.studyworld.com/newsite/reportessay/Science/Social%5CMonetary_and_Fiscal_Policy-63.htm
Monetary and Fiscal Policy http://countrystudies.us/united-states/economy-7.htm
Tools of Monetary Policy http://www.newyorkfed.org/education/fed/tools.html
Fiscal Policy by David N. Weil http://www.econlib.org/library/Enc/FiscalPolicy.html
Fiscal and Monetary Policy: Recession & Economic Growth. Pros and Cons http://hubpages.com/hub/Fiscal-and-Monetary-Policy-Recession--Economic-Growth-Pros-and-Cons
Difference Between Monetary and Fiscal Policy http://www.economicshelp.org/blog/economics/difference-between-monetary-and-fiscal-policy/

Other assignments on You Decide Gm 545

Ageism Essay

9955 words - 40 pages know the material. If you are unsure, and if the topic is not on your syllabus, ask your instructor. Recite Once you finish reading a topic, stop and answer the questions you raised in the Q-stage of SQ3R. Even if you have already done this during the reading phase, do it again now— with the purpose of learning and committing the material to memory. You may decide to recite each answer aloud, silently speak the answers to yourself, “teach” the

Blue Ocean Strategy Essay

2412 words - 10 pages A Conversation with W. Chan Kim and Renee Mauborgne authors of BLUE OCEAN STRATEGY 1) What is a blue ocean strategy? Kim & Mauborgne: Blue Ocean Strategy is a way to make the competition irrelevant by creating a leap in value for both the company and its customers. 2) What are red and blue oceans, and why do you use the colors red and blue? Kim & Mauborgne: We use the terms red and blue oceans to describe the

Wow Amazing Information

8687 words - 35 pages an objective: what does the organization want each message recipient to do as a result of the communication? Management communication expert Mary Munter writes in her Guide to Managerial Communication that managerial communication is only successful if you get the desired response from your audience.6 To get that response, you must think strategically about your communication, including setting measurable objectives for it. Deciding What

Vw Case Analysis

6282 words - 26 pages . As discussed that rivalry among the competitors is very strong in the industry. The major competitors such as GM are so close is because there is lack of differentiation and opportunities. The competitors can be compared to each other very closely based on the features and the price of the car. The consumers take close look at the price, quality, and durability, of different manufacturers while they decide what vehicle they want to purchase

Case Study

5077 words - 21 pages Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1-800-545-7685, write Harvard Business School Publishing, Boston, MA 02163, or go to http://www.hbsp.harvard.edu. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of Harvard

My Paper

3053 words - 13 pages Quality Management at United Airlines Brandon L. Smith Keller Graduate School of Management GM 588 6/20/2012 Dr. Kim Hunley INTRODUCTION United Airlines is a major airline based in the United States and one of the world’s largest airlines. It was formed in 1934. It is a subsidiary of United Continental Holdings Inc. Its headquarters are located in Chicago, IL. United is a founding member of the Star Alliance, the largest

Six Min Walk

7226 words - 29 pages .” Do not stop the timer. If the patient stops before the 6 minutes are up and refuses to continue (or you decide that they should not continue), wheel the chair over for the patient to sit on, discontinue the walk, and note on the worksheet the distance, the time stopped, and the reason for stopping prematurely. When the timer is 15 seconds from completion, say this: “In a moment I’m going to tell you to stop. When I do, just stop right where you

Ikea's Global Sourcing Challenge - Indian Rugs

6420 words - 26 pages data, or illustrations of effective or ineffective management. Copyright © 2006 President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1-800-545-7685, write Harvard Business School Publishing, Boston, MA 02163, or go to http://www.hbsp.harvard.edu. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means

Eic Analysis

4650 words - 19 pages Analyzing SAP ERP's success in TISCO The critical success factors of ERP systems mainly include proper implementation and usage. Beside this there are several other factors that decide the regular functioning of ERP in organizations. While many organizations have not incurred the necessary benefit in terms of money and other measures there are lots who have witnessed multiple profits. Studying them will help in understanding the critical

Paper

9051 words - 37 pages where neither Pepsi nor its rival, Coca-Cola, had the top market share position. Needless to say, all eyes at PepsiCo were on Barnard and Tamaro. Barnard and Tamaro would need to decide on the most important elements of their re-launching strategy for Brisk: which concept to produce and, apart from the Super Bowl, which media to distribute the new ads. Should they take Mekanism’s suggestion to go for a “viral advertising” campaign? Or should they

Global Business Opportunities Project:

8736 words - 35 pages . With these types of numbers Starbucks Corporation will be entering the Indian market at a great time of expansion. Starbucks Corporation will not only specialize in making coffee but it will also focus on tea. In India tea is a big part of their culture. The national average of tea consumption nationally is at an average of 733 gram/capita. In western India the current average is 900 gram/capita. As you can see tea consumption is a big part of

Similar Documents

Devry Econ 545 Entire Course Essay

434 words - 2 pages 545 Week 3 Quiz Imperfect Competition DEVRY ECON 545 Week 4 DQs 1 Macroeconomic News DEVRY ECON 545 Week 4 DQs 2 Healthcare DEVRY ECON 545 Week 5 DQs 1 Trade Deficits DEVRY ECON 545 Week 5 DQs 2 Exchange Rates DEVRY ECON 545 Week 5 Project Part 2 DEVRY ECON 545 Week 6 DQs 1 Fiscal Policy DEVRY ECON 545 Week 6 DQs 2 Monetary Policy DEVRY ECON 545 Week 6 Monetary and Fiscal Policy –- You Decide DEVRY ECON 545 Week 6 Quiz

Saturn Essay

7038 words - 29 pages club” – drawn from rank and labour from various parts of GM was asked to decide about the type of organisation required. The group visited about 60 benchmark companies and developed a team/partner approach to designing and manufacturing Saturn. This was Very different from what GM had practiced in the past. The partnering idea percolated from manufacturing to all other areas of Saturn, from engineering to marketing and to even the advertising

Business Law Management Essay

1139 words - 5 pages covered in this course, and I invite you to bring your personal experiences into the classroom discussion. Course Requirements and Classroom Approach The class will be run as an interactive lecture. It is absolutely essential that all required readings are completed prior to class. We will have some flexibility (within reason) to tailor this class to real life experiences each of you may encounter or to certain areas that are of particular

Miss Essay

2299 words - 10 pages condition and to effect the cognitive, behavioural and emotional responses necessary to maintain a satisfactory quality of life. Thus, a dynamic and continuous process of self-regulation is established. ”(Barlow JH. vol. 15. 2001. p. 545–58) When l got education from high school, there were many different options of extra learning method that you can choose, and l prefer to let teacher guide me and then I study by myself for more depth and details, in