Back to Assignment Attempts: 8. Agreement and disagreement among economists Supp
ID: 1158315 • Letter: B
Question
Back to Assignment Attempts: 8. Agreement and disagreement among economists Suppose that Van, an economist from an AM talk Average: 12 Suppose that Van, an economist from an AMI talk radio program, and Amy, an economist from s nonproft organization on the West Const, are arguing over saving incentives. The following dialogue shows an excerpt from their debate 1 think it's safe to say that, in general, the savings rate of households in today's econormy is much lower than it really needs to be to sustain an improvement in living standards Van: 1 think a switch from the income tax to a consumption tax would bring growth in living standards Amy: You realy think households would change their saving behavior enough in response to this to make a difference? Because The disagreement between these economists is most likely due to Despite their differences, with which proposition are two economists chosen at random most likely to agree Central banks should focus more on maintaining low unemployment than on maintaining Employers should not be restricted from outsourcing work to foreign nations Business managers can raise profit more easily by reducing costs than by raising Grade It Now Save & Continue Contioue without savingExplanation / Answer
The disagreement between the economist is most likely due to the way they are looking at the problem. According to Amy, the savings pattern of the households play a significant role in the economic development whereas Van looks at it from the perspective of tax being imposed on individuals.Amy's perspective is more broader as compared to Van.
Despite their differences, the two economists are likely to agree to this proposition-
Central banks should focus on maintaing low unemployment than on maintaing low inflation.
They will agree to this proposition as low unemployment will lead to better standard of livings and will also increase the aggregate savings.Both Amy and Van's perspective will match here.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.