Hello everyone, I have an economics question to ask for my MacroEconomics class. It would be awesome if someone could kindly answer my question
(and yes, I can read Thai but the keyboard I am currently using doesn’t support the language)
this was the assignment given to me. I tried to do it, but because the teacher has always given us tricky questions for our formative assessment, I just want to ask experts around here to check whether my solution sounds correct or not ☺
This is my solution:
RGDP up 5 percent → okay.. that doesn’t tell us any useful information
Unemployment rate is 8.9 → need to be lowered
CPI up 1.5 percent → imply that there’s an inflation of 1.5 last year, which is already good
Manufacturing capacity 84 percent → the teacher told us this is an ideal rate
Central Bank rate of 4% → ???
Therefore, we need to increase the AD curve by using Fiscal Policy (either decreasing tax or increasing gov's expenditure). When there’s an increase in AD, RGDP will rise. Therefore, unemployment rate will decrease, and our ultimate goal is obtained ! YAY
Problem solved.
However, I don’t think it is that simple.
คำถามเรื่องเศรษฐศาสตร์มหภาค Macro Economics
this was the assignment given to me. I tried to do it, but because the teacher has always given us tricky questions for our formative assessment, I just want to ask experts around here to check whether my solution sounds correct or not ☺
This is my solution:
RGDP up 5 percent → okay.. that doesn’t tell us any useful information
Unemployment rate is 8.9 → need to be lowered
CPI up 1.5 percent → imply that there’s an inflation of 1.5 last year, which is already good
Manufacturing capacity 84 percent → the teacher told us this is an ideal rate
Central Bank rate of 4% → ???
Therefore, we need to increase the AD curve by using Fiscal Policy (either decreasing tax or increasing gov's expenditure). When there’s an increase in AD, RGDP will rise. Therefore, unemployment rate will decrease, and our ultimate goal is obtained ! YAY
However, I don’t think it is that simple.