T/F/U. To counterbalance a decrease in investment during a recession, governments offer tax credits to increase investment. Draw and label a figure showing why this is or isn't the case.

Q: None

A: Step 1: Recession in the AD/AS ModelA recession is characterized by reduced economic activity,…

Q: How distortions affect the market of tradable and non-tradable goods and how it affects the…

A: the Market of tradeable goods refers to the industries whose goods are traded in international…

Q: How do consumption and investment spending affect aggregate expenditures and output over the…

A: A. The aggregate expenditure is the summation of all the expenditures made by the economic agents in…

Q: The table below shows data for three fictitious countries. a. Compute the current MPC for each…

A: MPC is the Marginal propensity to consume it shows the change in consumption in relation to the…

Q: When unwanted inventories pile up in retail stores, how is production affected?  What are the steps…

A: When the inventories pile up in retail stores, then the stores will first try to clear the stores by…

Q: Please explain the impact of a change in the savings rate on the output

A: - In an economy, the individuals or groups either save or consume from their income. Savings and…

Q: How much more output does the $20 trillion U.S economy produce when GDP increases by 1.0 percent?

A: Output – it the total amount of commodities or services produced in a particular time period.…

Q: Why does a $100 billion dollar increase in government spending increase output by more than $100…

A: The multiplier indicates that the number of times income increases by increasing government…

Q: Africa's government has increased its spending this year, leading to a growing budget deficit. How…

A: Budget deficit occurs when the expenditure of the economy exceeds the revenue earned by the economy…

Q: Can you indicate 2 built in stabilizers and show they function during a recession and expansion.

A: Two automatic stabilizers in recession are:  Automatic stabilizers are mechanisms incorporated into…

Q: What would cause domestic investment to go down? a decrease in interest rates none of the answers…

A: Investment:Investment refers to putting in or investing money in any projects that in the future…