Trusted by Students Everywhere
Why Choose Us?
0% AI Guarantee

Human-written only.

24/7 Support

Anytime, anywhere.

Plagiarism Free

100% Original.

Expert Tutors

Masters & PhDs.

100% Confidential

Your privacy matters.

On-Time Delivery

Never miss a deadline.

Why do government prefer to use the business cycle expansion models in their economies to increase the output of their residents?

Business Dec 23, 2020

Why do government prefer to use the business cycle expansion models in their economies to increase the output of their residents?

Expert Solution

The output of the resident is concerned with the products made in the economy during a period of time. The government uses an expansionary model like reducing the market interest rate, purchasing governmental bonds, making expenditures on governmental activities, and more. These expansionary models increase the supply of money in the economy. The purchasing power of the people increases. This increases their demand for goods and services. The increase in demand causes prices to increase. The increased prices motivate new sellers and manufacturers in the market. The injection of new producers results in an increase in the overall output of the goods and services.

Archived Solution
Unlocked Solution

You have full access to this solution. To save a copy with all formatting and attachments, use the button below.

Already a member? Sign In
Important Note: This solution is from our archive and has been purchased by others. Submitting it as-is may trigger plagiarism detection. Use it for reference only.

For ready-to-submit work, please order a fresh solution below.

Or get 100% fresh solution
Get Custom Quote
Secure Payment