Keynesian economists assert that a GDP gap = $6 trillion needs an increase in government spending of ... Group of answer choices 1. More than $6 trillion 2. Less than $6 trillion 3. $6 trillion
Q: An economy can be considered healthy if the Real GDP Growth Rate is than the Inflation Rate.
A: GDP refers to the all final value of good and services produced in the domestic territory of the…
Q: 5) (KEY QUESTION) Consider the following data assuming that these are the only products produced and…
A: A country's nominal GDP is determined using current prices and is not adjusted for inflation.…
Q: Officially recession is defined as: decrease in the real GDP for two consecutive quarters. decrease…
A:
Q: now the impact of the increase in government purchases on the interest rate by shifting one or both…
A: Answer - Monetary Policies :- These are the policies which is used by the Central Banks of…
Q: Which of the following are some of the reasons that make economic evaluation of public projects more…
A: When talking about the differences in public projects and private projects, it can be said that…
Q: If Mylan continues to charge $150 per EpiPen, Mylan will earn economic profit. True or False: Given…
A: Theoretically, a monopolistic market is one in which only one business is allowed to sell goods and…
Q: n equilibrium, if $10.5 pound sterling and 1 pound sterling = 40 Swiss francs, the exchange rate…
A: Answer; Option 4 is correct.
Q: Do you think it is possible to draw a clear distinction between private and public goods? Which of…
A: There is a clear-cut distinction between the private good and the public good. There is different…
Q: Which statement defines the essence of Durkheim’s moral individualism? A. It is having a deep…
A: In an economy, individuals behave differently in the same situation based on their different beleifs…
Q: When there is a recession you need __________ fiscal policy. When there is inflation you need…
A: A recession means the economic activities are slowing down and to improve it needs to push the…
Q: Alternative A Alternative B Alternative C Initial cost $60,000 $40,000 $50,000 Annual Benefits…
A: Find outs, 1) Cash flow diagram 2) Present Worth of each alternatives Given, Rate = 4% for each…
Q: ATC 12 AVC 1000 1500 1800 Use the graph above to answer the following questions. The graph…
A: Note:- Since we can only answer up to three subparts, we'll answer the first three. Please repost…
Q: Question 11 When leakages are greater than injections the economy will
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Thailand's 2018 per capita GDP in International Dollars is $11,000. Per capita GDP (PPP) is $32,000.…
A: The per capita gross domestic product (GDP) is a financial measure that calculates a country's…
Q: The population of Czechia is ageing quickly and the old, who spend a relatively small proportion of…
A: Answer - GDP (output) :- It is the sum of all the goods and services produced in a country in a…
Q: 49- Which of the following is true about GDP as a measure of a country's economic health? a. It…
A: Gross domestic product is the sum total of all the goods in services which are considered to be as…
Q: Qd=88 000-200P+ 0.3M-1000PR MC 90 +0.09Q TVC = 48Q TFC = 650 000 where Quis quantity demanded, P is…
A:
Q: A. Modified TRUE of FALSE. Write T if the statement is TRUE and CHANGE the underline word if the…
A: Storage is the process of keeping the goods, services, energy supplies to be used in future.
Q: Two key macroeconomic indicators that provide insight into the standard of living in an country are:…
A: Answer: Standard of living is generally measured by the amount of goods and services available to…
Q: 10 9 8 7 6 5 4 3 2 1 AS AD Tools -9 QE QF
A: Introduction As measured by output, GDP is neither larger nor lower than GDP as measured by demand.…
Q: A building contractor can source door frames from either a nearby shop or a far-off forest area. The…
A: Solution:- Total reqquirent of wood = 75 tonnes For Nearby Shop:- Material cost/ton = $2,000…
Q: warranty expired after 3 years of ownership. The cost of periodic mainten $800 every 2 years. If the…
A: First we compute Calculate the present worth of the repair and maintenance. Second we compute…
Q: A company has no preferred stock outstanding and has 15,000,000 common shares outstanding. The…
A: EPS = (net income - preferred dividends)/ average shares EPS = (30,000,000 - 7,500,000)/15,000,000 =…
Q: In a production of armored shots to Ukraine the production function looks as follows: Q = KaL b…
A: As given information Q =KaLb Where b = 0.5 and a+b =1 so a = 0.5 Also price of capital Pk= 2 Price…
Q: In a competitive duopoly setting group pricing allows firms to extract each consumer while at the…
A: In a perfectly competitive market, the prices are determined by the industry. While the firms…
Q: A recently discovered painting by Picasso is on auction at Sotheby's. There are two main bidders Amy…
A: Answer - Pay Off :- It is the amount or result that an individual will gain from winning the game…
Q: Suppose that the market demand for facial mud packs are given as follows: P = 2.200 - Q. Mud packs…
A: Given, Market demand: P = 2200 - Q
Q: Q)compare the real business cycle model to the coordination failure model.
A: Real business cycle model The real business cycle states the theory regarding changes in the…
Q: 6. Describe how public choice economics model the behavior of various political actors (citizens,…
A: "Economic tools" are employed in public choice theory to answer "classic political science problems"…
Q: Refer to Figure 3-1 in Question 16. Assume the situation starts as in the previous problem (Inco…
A: Utility maximizing condition is determined by the condition of tangency. The slope of Budget…
Q: Jack Sparrow and his wife consume wine (W) and books (B). Jack Sparrow's utility function is…
A: Answer - Pareto Optimal Allocation :- It is the allocation where both the individuals present in…
Q: make a template titled "socio-economic environment impact of a business"
A: Introduction Socioeconomic philosophy is the study of the relationship between economics and social…
Q: How should countries operate relative to their investment opportunities?
A: Introduction Many investors allocate a percentage of their portfolios to international investments.…
Q: Monopoly has a fixed cost FC=10 and her MC=4. The first group of customer has demand Q=20-0.5P, the…
A: Marginal costs are a function of the total cost of production, which includes fixed and variable…
Q: The initial investment in the equipment needed for the project is $50,000 for a duration of 10…
A: Answer; Correct answer is : D. $4500 ;36,500.
Q: Question b The output level on a AD/AS graph when all factors of production are being used is called…
A:
Q: Question 1 a. Draw a production possibilities curve for a hypothetical economy producing capital…
A: Hi! Thank you for the question As per the honor code, We’ll answer the first question since the…
Q: ENGINE (7) A local store sells a 60" Full HD plasma TV for $30 per week to be paid in 24 months. If…
A: An effective annual interest rate is the real return on a savings account or any interest-paying…
Q: Number of Votes 63 43 A reality show is considering three cities for their new season: Philadelphia…
A: Answer is given below
Q: Q7
A: The total revenue will increase or decrease it depends on the elasticity of demand and the direction…
Q: Study sheet: Chapter 2: The Power of Trade and Comparative Advantage Absolute Advantage…
A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…
Q: Use the figure to answer the following questions. Assume that the economy initially is operating at…
A:
Q: If the reserve ratio is 12.5%, the deposit multiplier is: Select an answer and submit. For keyboard…
A: The money multiplier is a measure of change in total money supply because of a change in the…
Q: The market for tennis shoes in Valencia is such that 550 pairs are sold when price=$38 and 450 pairs…
A: Economists have discovered that the prices of some items are highly inelastic. A decrease in price…
Q: The liquidity premium theory of the term structure is different from the expectations theory of the…
A: The Liquidity Premium Theory describes the return or yield based on the risk involved in purchasing…
Q: What is the GDP for a country where consumption spending is $400 billion, gross investment is $125…
A: Answer: GDP=C+I+G+X-MWhere,C=consumption spendingI=InvestmentG=government…
Q: Betty has the endowment (8 eggs, 20 yogurts), which she can trade on the market. If the price of…
A:
Q: Most automobile companies in the United States between 1970 and 1990 knew that Toyota was able to…
A: Path dependence:- As a consequence of the organizational qualities or ideas and values,…
Q: less After the decrease in the price level, the quantity of money demanded at the initial interest…
A: Answer: If the price level has decreased then will be a downward movement along the aggregate demand…
Q: Three examples of people over 15 years of age, not participating in the labour force are and 19
A: In labour statistics, the working-age population is a key concept. Changes in the working-age…
![](/static/compass_v2/shared-icons/check-mark.png)
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
- When using the Aggregate Expenditures model (or Simple Keynesian Model) Increasing taxes and increasing government spending move GDP in the same direction but have differ in their strength. True FalseGiven a simple Keynesian spending multiplier of 2, how will GDP (Y) change when business investment increases by $15 billion, exports increase by $5 billion, and government spending drops by $10 billion? Y increases by $20 billion. Y decreases by $20 billion. Y decreases by $10 billion. Y remains unchanged.Assume that initial GDP is $1,000 and we want to expand it to $1,600. Average MPC for the country is 2/3. What should be the new level of government spending if the initial level is $100. Also how much of a tax policy change reach to the same results?
- In a depressed economy with an MPC of 0.20, what effect will a $200 increase in government spending have on equilibrium GDP? It will raise it by $1,000. It will reduce it by $150. It will raise it by $500. It will raise it by $250.The country is experiencing a serious rise in inflation which the government wants to control through fiscal policy. The Government will decrease spending by $20 million and increase taxes by $15 million. The marginal propensity to consume (MPC) is 0.80. What will be the effect on GDP and by how much? A recessionary gap is how much GDP needs to increase from the current GDP to achieve full employment. Let us say that we are experiencing a recessionary gap of $36 million. Also assume that the MPC equals .80. The government decides to decrease taxes in order to close the recessionary gap. What will be the tax decrease? An inflationary gap is how much GDP needs to decrease from the current GDP to maintain employment while avoiding inflation. Let us say that we are experiencing an inflationary gap of $200 million. The government decides to increase taxes. Assume that the MPC equals .80. What will be the tax increase? d. The government wants to achieve a balanced budget. It, therefore,…The country is experiencing a serious rise in inflation which the government wants to control through fiscal policy. The Government will decrease spending by $20 million and increase taxes by $15 million. The marginal propensity to consume (MPC) is 0.80. What will be the effect on GDP and by how much? A recessionary gap is how much GDP needs to increase from the current GDP to achieve full employment. Let us say that we are experiencing a recessionary gap of $36 million. Also assume that the MPC equals .80. The government decides to decrease taxes in order to close the recessionary gap. What will be the tax decrease? An inflationary gap is how much GDP needs to decrease from the current GDP to maintain employment while avoiding inflation. Let us say that we are experiencing an inflationary gap of $200 million. The government decides to increase taxes. Assume that the MPC equals .80. What will be the tax increase? d. The government wants to achieve a balanced budget. It therefore…
- Question 45 5 pts Potential GDP equals $500 billion. The economy is currently producing GDP equal to $400 billion. If the MPC is 0.52, then autonomous spending must change by $ billion for the economy to move to potential GDP? Please round to two decimal places where needed. Question 46 5 pts Suppose Ford plans to produce 9.2 million trucks this year. The company expects to sell 7.5 million. Suppose that at the end of the year, Ford has sold 7.3 million trucks. What is the level of planned inventories? Please round to the nearest one-decimal and enter as millions. For example, if your answer was 4,500,000 you would enter the number 4.5. Question 47 5 pts An economy sees consumption increase by $2,792 million when disposable income increases by $4,770. Assuming the marginal propensity to consume remains constant, what is the marginal propensity to save? Please round to the closest two decimal places.The chart below gives the data necessary to make a Keynesian cross diagram. Assume that the tax rate is 0.4 of national income, the MPC out of after-tax income is 0.9, investment is 58, government spending is 60, exports are 40, and imports are 0.1 of after-tax income. Alt Text: This chart contains the following columns: National Income, After-tax income, Consumption, I+G+X, Minus Imports, and Aggregate Expenditures. The National Income Column contains the following values for each of the following rows: 100, 200, 300, 400, 500, and 600. The only other value provided is the consumption, 104, for national income, 100. What is the equilibrium level of national income for this economy? A) Y=200 B) Y=400 C) Y=300 D) Y=500The chart below gives the data necessary to make a Keynesian cross diagram. Assume that the tax rate is 0.4 of national income, the MPC out of after-tax income is 0.9, investment is 58, government spending is 60, exports are 40, and imports are 0.1 of after-tax income. Alt Text: This chart contains the following columns: National Income, After-tax income, Consumption, I+G+X, Minus Imports, and Aggregate Expenditures. The National Income Column contains the following values for each of the following rows: 100, 200, 300, 400, 500, and 600. The only other value provided is the consumption, 104, for national income, 100. What does consumption equal when income equals 600? Group of answer choices a. 324 b. 374 c. 540 d. 104
- In the economy of Keynesian Island, autonomous consumption expenditure is $50 million, and the marginal propensity to consume is 0.8. Investment is $160 million, government expenditure is $190 million, and net taxes are $250 million. Investment, government purchases, and taxes are constant—they do not vary with income. The island does not trade with the rest of the world. If the government increases its purchases by $200 million, what will be the change in the economy's equilibrium real GDP? Show the change on the graph as well.The country is experiencing a serious rise in inflation which the government wants to control through fiscal policy. The Government will decrease spending by $20 million and increase taxes by $15 million. The marginal propensity to consume (MPC) is 0.80. What will be the effect on GDP and by how much? A recessionary gap is how much GDP needs to increase from the current GDP to achieve full employment. Let's say that we are experiencing a recessionary gap of $36 million. Also assume that the MPC equals .80. The government decides to decrease taxes to close the recessionary gap. How much will be the tax decrease? An inflationary gap is how much GDP needs to decrease from the current GDP to maintain employment while avoiding inflation. Let's say that we are experiencing an inflationary gap of $200 million. The government decides to increase taxes. Assume the MPC equals .80. How much will the tax increase be? The government wants to achieve a balanced budget. It therefore increases…If MPC =.6 and government purchases increases by $5 billion, GDP will increase by $3 billion $30 billion $12.5 billion $1.25 billion
![Macroeconomics](https://www.bartleby.com/isbn_cover_images/9781337617390/9781337617390_smallCoverImage.gif)
![Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781337617383/9781337617383_smallCoverImage.gif)
![Economics: Private and Public Choice (MindTap Cou…](https://www.bartleby.com/isbn_cover_images/9781305506725/9781305506725_smallCoverImage.gif)
![Macroeconomics: Private and Public Choice (MindTa…](https://www.bartleby.com/isbn_cover_images/9781305506756/9781305506756_smallCoverImage.gif)
![MACROECONOMICS FOR TODAY](https://www.bartleby.com/isbn_cover_images/9781337613057/9781337613057_smallCoverImage.gif)
![Economics For Today](https://www.bartleby.com/isbn_cover_images/9781337613040/9781337613040_smallCoverImage.gif)
![Macroeconomics](https://www.bartleby.com/isbn_cover_images/9781337617390/9781337617390_smallCoverImage.gif)
![Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781337617383/9781337617383_smallCoverImage.gif)
![Economics: Private and Public Choice (MindTap Cou…](https://www.bartleby.com/isbn_cover_images/9781305506725/9781305506725_smallCoverImage.gif)
![Macroeconomics: Private and Public Choice (MindTa…](https://www.bartleby.com/isbn_cover_images/9781305506756/9781305506756_smallCoverImage.gif)
![MACROECONOMICS FOR TODAY](https://www.bartleby.com/isbn_cover_images/9781337613057/9781337613057_smallCoverImage.gif)
![Economics For Today](https://www.bartleby.com/isbn_cover_images/9781337613040/9781337613040_smallCoverImage.gif)