If government spending is increased to G=80,What happens to equilibrium income?explain using government spending multiplier what happens to imports?

Q: How does the subsidies move us from the MPC curve to the MSC curve ?

A: Externalities are important in economics because they represent the unanticipated implications of…

Q: What is a budget surplus? Outline the benefits and use of a budget surplus in macroeconomic…

A: The government expenditure level and the amount of tax collection determine whether the government…

Q: Germany injects $100 into the United States by purchasing new software. If the spending multiplier…

A: The spending multiplier means initial rise in the expenditure causes multiple rise in the income…

Q: Suppose the government increases expenditures by $50 billion and the marginal propensity to consume…

A: Aggregate demand is the sum of Consumption, Investment, government spending and net export. So, AD =…

Q: Suppose government purchases increase by billion dollars, and as a result, real GDP incre by 15…

A: The multiplier is a measure of how much the overall income will increase for each dollar of…

Q: When it comes to policies aimed at tackling GHG associated with fossil fuels, Green and Denniss…

A: When it comes to policies designed to decrease GHG emissions connected with fossil fuels, many…

Q: Which of the following is an example of an expenditure-increasing policy? a. a decrease in import…

A: Expenditure-Increasing Policy: An expenditure-increasing policy is designed to increase the…

Q: The following graph shows the short-run aggregate supply curve (AS), the aggregate demand curve…

A: If the bout of severe weather increases the agriculture cost, cost of transporting and cost of…

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Q: 14. The economy is experiencing a $225 million inflationary gap. If the government2 decided to solve…

A:

Q: An economy Is described by the following equations: C = 500 + 0.85(Y - T), Cis consumption, Y is…

A: C=500+0.85(Y-T) M=0.05(1-t)Y IP=1500 G=400 T=ty

Q: he cost of rebuilding the Philippines after typhoon Haiyan could reach USD 5.8bn”, a senior official…

A: Initial rise in the government expenditure leads to multiplier rise in the income level, this is…

Q: What is a surplus unit?

A: A recession can be described as a sustained period of poor or negative growth in real GDP (output)…

Q: CENGAGE MINDTAP Homework (Ch 16) 4. The multiplier effect of a change in government purchases…

A: Aggregate Demand: The aggregate demand is a sum of private investment demand, government…

Q: If a tax rate of 1/3 of national income were introduced, what would be the new equilibrium level of…

A: C = 10 + 0.75Y  I = 20 G = 40    Now; T (taxes) = 1/3*Y or 0.33Y   Thus; C = 10 + 0.75(Y-T)

Q: Q#1) Consider the following equations describing the components of demand and equilibrium in the…

A: Equilibrium output is takes place where AE is equals to the Y where AE = C+I+G And the different…

Q: Derive the expenditure multiplier using the lump sum taxes (or fixed sum)

A: The ratio of change in the GDP due to change in the taxes is known as the the multiplier. The…

Q: The table below provides information for the economy of Zawi. XN27 - 0.08Y G = 250 C = 70+ 0.58Y I =…

A: Equilibrium in the market is reached where output is equal to aggregate expenditure.

Q: .Use the multiplier applicable to export,to explain how a100–billion decline in demand for export…

A: Export is the selling the commodities in the foreign market manufactured within the country’s…

Q: If consumption is C=100+0.75Yd Taxes is T=50+0.5Y Export is X=200 Import is M=50+0.25Y…

A: The solution you've provided is incorrect.  Export is autonomous and not dependent on output (Y).…

Q: If the government got rid of sales tax, how might this affect the market? shift AD to the right…

A: When the government rid of sales tax, then the price of the goods decreases. Decreasing price leads…

Q: No more than five sentence. Briefly describe/discuss what are the positive impact of the tourism…

A: One of the most important components of the global economy is tourism. It produces sales of billions…

Q: In a two-good economy, we have the following information about the demand for good 1: the income…

A: It can be defined as the concept of economics which shows how much the quantity demand of a…

Q: Durable goods and non-durable goods comprise approximately ________ of the supply side of the GDP.…

A: GDP is the sum of consumption, investment, government spending and net exports in an open economy.

Q: Explain the difference between the government purchases multiplier and the net tax multiplier. If…

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Q: The following set of equations describes the economy of a country A, in Africa C = 2000 + 0.75Id…

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Q: What would happen to the multiplier if the MPC were to fall? The multiplier would stay the same The…

A: Multiplier refers how much time money multiplied in market it depend on the level of consumption ,…

Q: Question 21.21  Which of the following goods (with their respective income-elasticity coefficients…

A: Income elasticity of demand is a measure of the degree of responsiveness of quantity demanded to…

Q: Would an increase in federal spending on the space program generate a multiplier effect on the U.S.…

A: Increase in federal spending increases the supply of firms to cater the demand that is increased due…

Q: By how much would government purchases have to change in order to eliminate any output gap?

A: The amount of money spent by the government on products and services utilized for public objectives,…

Q: YAS 742 + 15P – 28Poil YAD = 478 – 45P+ 18G Suppose initially, the Poil = $93 per barrel and…

A: Answer- "Thank you for submitting the question .But, we are authorized to solve only 3 sub…

Q: What is the Laffer curve. Graphically show how to increase the tax revenue.

A: The economies around the world tend to operate with the motive of increasing their growth, and…

Q: he Marginal Propensity to Consume (MPC) is 0,8 and the government wants total spending to increase…

A: Government spending: It refers to the spending which is done by the government at different parts of…