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Imagine that you were called in by the government to advice on how it should use macroeconomic policy to manage the cyclical fluctuations in the economy. What advice would you give and how would you justify the advice?
Essay specific features
Written by:
Jean R
Date added:
July 9, 2014
Level:
University
Grade:
A
No of pages / words:
5 / 1226
Was viewed:
10069 times
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Essay content:
Year-on-year GDP growth has slipped below 3% and a further deceleration seems to have occurred in early 2008. Consumer spending growth generally held up well during the first nine months of 2007, but has weakened since then as the effect of modest real disposable income growth, tighter credit conditions, a weakening housing market and depressed confidence levels have fed through...
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It is also known as the economy cycle or business cycle. Although there are no regular patterns of the fluctuation, but it normally repeats the cycle of recovery, boom, recession, sometimes even slump and depression. The diagram below shows that between the peak and trough, it is the contraction of the economy, and the recovery period refers to the expansion of the economy...
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