In the above figure, which of the following policies could move the economy to potential GDP?   Group of answer choices   increasing government expenditures and decreasing taxes   decreasing government expenditures and increasing taxes   decreasing taxes and not changing government expenditures   increasing government expenditures and not changing taxes

Q: When a lower-income economy’s GDP is able to “catch up” with a higher-income economy’s GDP, this…

A: GDP is the gross domestic product.  GDP is the sum of all the goods and services produced in an…

Q: Which of the following statements best explains the effects of transfer payments and taxes on…

A: Disposable income = Y - TA + TR Y= income TA = taxes TR= transfer payment

Q: In 2020, a simple economy relied on three sectors: manufacturing, professional services, and…

A: Economy is a system that provide living to the people while Total Production refers to the total…

Q: C-1000+ 0.8(Y-T), 1 - 500, G-800, T = 500. Suppose that taxes INCREASE by 200. What is the change in…

A: Tax multiplier is given by the following formula :-  Tax multiplier = -MPC/(1 - MPC)  MPC is the…

Q: Suppose that there’s a recessionary gap, and the country wishes to produce its potential output.…

A: Recession refers to the stage where GDP decrease,  rising unemployment rates, reduced consumer…

Q: The following table shows data on consumption, investments, exports, imports, and government…

A: Gross Domestic Product: Gross Domestic Product (GDP), refers to the total market value of all final…

Q: An Economy is composed of a Producer of Apples, a Producer of Bananas, a Grocery Store, Consumers,…

A: Total profits = Profits made by Apple producers + Profits made by banana producers + Profits made by…

Q: 1 The following table shows income and consumption:  Calculate:  A- Saving (S),  B- Marginal…

A: Given  Y C 1000 1500 2000 2600 3600 3000 4800 3900 5500 4200 6200 4800

Q: An economy has three sectors: manufacturing, underwater basket weaving, and energy. Manufacturing…

A: The manufacturing unit sells 30% of its output to underwater basket weaving. It uses 30% of its…

Q: Suppose that a federal election is called at a time when the economy is experiencing a recessionary…

A: The objective of the question is to understand the impact of two different economic policies - one…

Q: Classify each of the following as IN AFRICA's 2020 GDP or NOT IN AFRICA's 2020 GDP. Crude oil (used…

A: GDP is the measurement of the market value of all final goods and services produced within an…

Q: ate the three possible relationships between production, income and spending in macroeconomic theory

A: Macroeconomics is the study of aggregate phenomena including economic growth, business cycles,…

Q: Answer the questions below for the economy of Motak using the graph below. Government spending / net…

A: Economics refers to the study of scarcity and its implications for the use of resources, production…

Q: If a Japanese tourist drinks German beer in a hotel in New York City, how will the U.S. GDP be…

A: GDP quantifies the monetary worth of final products and services produced in a nation over a…

Q: Suppose that GDP was $300 billion in year 1 and that all other components of expenditures remained…

A: GDP in year 1 = 300 billionIncrease in business inventories = 15 billion

Q: Maria moved from Chicago to Colorado  in November 2020. She paid $1,200 to the professional moving…

A: Gross domestic product measures the market value of all final goods and sevices produced in an…

Q: In which years was the government's budget in deficit? Check all that apply. 1929 1948 1967 1986…

A: A budget deficit occurs when the expenditure incurred by the government exceeds the revenue earned.…

Q: Suppose the economy is four sectors economy. The economy is represented by the following: C = 400 +…

A: Aggregate expenditure equation: AE = C + I + G + NX => AE = 400 + 0.40Yd + 25 + 40 + (-25) Note:…

Q: Below is economic data for Germany for 2016 (measured in billions of current euros). What was total…

A: Total Spending is known to be as the spending which mainly means that when a person spend money for…

Q: The government decides to levy a lump-sum taxes by $50 billion which will reduce disposable income.…

A: Lump sump tax A lump-sum tax is a type of taxation that is based on a fixed amount rather than the…

Q: nprecedented floods impacted the Australian economy in 2022. After defining the GDP, identify: One…

A: Gross domestic product means a total market  monetary value of goods and services produced in the…

Q: Create a graph for the aggregate expenditures (AE) model in Excel using the data from Table 1: A…

A:

Q: Using the midpoint method (percentage change = change in quantity/average), calculate the percentage…

A: The nation's GDP changed from $1 trillion in 2005 to $1.03 trillion in 2006. The midpoint method is…

Q: An Economy is composed of a Producer of Apples, a Producer of Bananas, a Grocery Store, Consumers,…

A: We use the expenditure method to calculate GDP. GDP = Consumption expenditure + Investment…

Q: How to derive the total expenditure curve?

A: Total expenditure is defined as the expenditure that all the sectors of the economy are planning to…

Q: Give typing answer with explanation and conclusion Explain why a $1 increase in government spending…

A: An increase in Government Spending leads to a multiplier effect, which constitutes the reason for…

Q: In Zionville, GDP is $26,500. Consumption spending is $12,000, Investment spending is $5000, exports…

A: GDP is the sum of consumption(C) investment(I), government expenditure(G) and net export(NX)

Q: True or false  GDP is a macroeconomic concept.

A: A subfield of economics known as macroeconomics focuses on the economy as a whole rather than…

Q: Which of the following best characterizes the circular flow of income? Businesses buy resources from…

A: The circular flow of income model depicts how income flows through the economy between economic…

Q: Suppose the following statistics characterize the financial health of the hypothetical economy…

A: Given:- At end of 2017, GDP=$150 billionNational debt=$180 billionBudget deficit=$9 billionDebt…

Q: For each of the following transactions, determine if it takes place in the market for outputs or the…

A: The measure that depicts the market value of all the goods and services being produced in an economy…

Q: The following equations describe a small economy. Figures are in millions of dollars; interest rate…

A: IS equation is determined by the good market on the other LM equation is determined by the Money…

Q: In the future report of U.S. Gross Domestic Product (GDP) for Quarter 1 of 2023, which of the…

A: Gross domestic product (GDP) measures the money value of all final goods and services produced…

Q: Fluctuation of savings and investment rates impact on GDP of any macroeconomics. Comment with the…

A: GDP or the gross domestic product is the value of all the final goods and services which are newly…

Q: You are given the following information about an economy. C=20+0.8(Y-T) 1=100 G=520 T=0.25Y and…

A: Equilibrium GDP is denoted to be as that level of the output whose certain level of the production…

Q: On the following graph, the black line shows potential real GDP and the blue line shows actual real…

A: GDP or gross domestic product is the sum of the value of all end commodities produced within the…

Q: Use the following information to calculate the level of consumption expenditure in this closed…

A: let's we have given variableReal GDP = $1000Taxes = $150 Government Spending = $200Private…

Q: What is the impact of spending changes on GDP?

A: Aggregate demand is the total demand in a given period for a particular price level in the economy.…

Q: Which of the following is true? The federal government spend about the same as state and local…

A: The federal government means the central governing authority of a country that is responsible for…

Q: The U.S. government treats the goods produced by a firm in a year that are not sold in that year as…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Suppose the information in the following table is for a simple economy that produces only the…

A: GDP or gross domestic product is the sum of the value of all end commodities…

Q: The change in consumption is $300 and change in income is $1000 Find the value of MPC

A: The marginal propensity to consume (MPC) measures the proportion of a unit of the consumer's income…