Question

1.Outline and discuss two macroeconomic factors that could decrease aggregate demand (AD) and create a recessionary gap ending the expansion.When do you expect the next recession to occur? Why?

2. argument for why the United States should eliminate completely all of its trade barriers to imports from other countries-even if other countries continue to keep their barriers to U.S. products.

3.describe and explain at least two long run macro policy options that the President can consider to boost productivity growth and potential GDP. These policies should shift the Long Run Aggregate Supply curve (LRAS) out over time. Please note that fiscal and monetary policies are not long run policies.

Answer 1

As per HOMEWORKLIB RULES, in case of multiple questions only the first question is to be answered

Kindly ask rest of the questions in a separate post

1.

Two macroeconomic factors that could decrease aggregate demand are:

(A) Fall in incomes of the people (which reduces their spending power and thus reduce their demand for goods and services)

(B) Fall in government spending also reduces AD by reducing consumer incomes and thus their purchasing power

consumers also reduce their AD if they expect future prices to rise as they tend to spend less and save more for future.

The next recession will take no less than 30-40 years to surface because after 1960s, the economy hit recession in 2009 from which it recovered only recently. So , currently the economy is in a recovery phase and will take time before the next recession hits jt.