Questions
ECON-100-OLH-CRN46447 The Classical Long Run Policy Model: Growth and Supply Side Policies - Concept Questions
Single choice
This is for the Dallas Fed article. Dallas Fed The U.S. will struggle to accelerate growth from the current pace unless its government invests in infrastructure, manages immigration policy and improves education, said Robert Kaplan, president of the Federal Reserve Bank of Dallas. “[At the] Fed, we’re worried about GDP and employment,” said Mr. Kaplan, speaking at a moderated forum with executives from Burlington Northern Santa Fe and Kimberly-Clark Corp. at the University of Texas at Arlington. “People are rightly saying one-and-three-quarters-percent, 2-percent growth is very disappointing…we must be doing something wrong. Until you look at demographic trends…the labor participation rate is steadily declining. In the next 10 years, unless we do something, it’ll be declining further.” “The labor force is shrinking as a percentage of the population, and that’s reducing potential GDP. One huge challenge is how do we pay for medical [and other] benefits of that retiring group when there’s a shrinking percentage of people paying for it and the number of people receiving it is going up.” Mr. Kaplan said the U.S. could overcome these challenges, as long as policy makers take action to address structural problems in the economy. “I’m optimistic, if we don’t just, for lack of better word, crawl up into a fetal position and do nothing,” said Mr. Kaplan, citing current “gridlock” among legislators as a danger. “I’m optimistic if we invest in infrastructure, invest in education and improve education; if we have oversight of immigration policy, because we need population growth.” “We cannot any more just plod along as we have done.” “Monetary policy was never designed to act in isolation or by itself,” Mr. Kaplan said. “In the last seven, eight years, we’ve had predominantly monetary policy…we shouldn’t fool ourselves. [For these issues], we need broad participation, fiscal policy, government action.” Per the article, Mr. Kaplan is endorsing _________________________ for the economy.
View Explanation
Verified Answer
Please login to view
Step-by-Step Analysis
First, let's restate what's provided: the question references an article about Robert Kaplan of the Dallas Fed, who argues that the U.S. needs policy action beyond monetary policy, including infrastructure investment, education improvements, and immigration policy oversight. The task asks Per the article, Mr. Kaplan is endorsing ______ for the economy.
Option analysis:
- Since no answer options are actually listed in the provided data (......Login to view full explanationLog in for full answers
We've collected over 50,000 authentic exam questions and detailed explanations from around the globe. Log in now and get instant access to the answers!
Similar Questions
Fiscal policy refers to the idea that changes in:
Consider the following graph. Suppose the economy is currently at a point like A. Assume the central bank in this economy remains idle. What type of policy can the Government conduct to reach point B?
______________ are changes in federal taxes and government purchases that are intended to achieve macroeconomic policy goals, and ______________ are changes in federal taxes and government spending that respond to the Business Cycle without direct government action.
The graph above shows the AD, LRAS, and SRAS functions for a country. The Fed is following an inflation targeting policy. Its target inflation rate is Π* = 5.00 percent and the potential GDP equals YP = 100,000. The Fed is quite successful in achieving its inflation target in the long run. Okun's alpha equals 2. Currently the economy is in the state of long-run equilibrium. Marginal propensity to consume is MPC = 0.80. The government increases the purchase of goods and services (G) by 1,600 units. If the Fed does not follow the inflation targeting policy, and if this increase in G turns out to be permanent, private spending will be crowded out by X units. What is the value of X? Assume no change in net exports.
More Practical Tools for Students Powered by AI Study Helper
Making Your Study Simpler
Join us and instantly unlock extensive past papers & exclusive solutions to get a head start on your studies!