What would have a larger effect on aggregate demand: $150 billion of tax cuts or $150 billion of government expenditure? 1 try left Government expenditure would have a than the tax cuts because effect on aggregate demand A. smaller; tax cuts increase aggregate demand and government expenditure decreases aggregate supply OB. smaller; tax cuts increase aggregate demand and government expenditure decreases aggregate demand Oc. larger; the tax cuts decrease aggregate expenditure while government expenditure increase aggregate demand D. larger; all government expenditure is spent while some of the tax cut is saved 3

What would have a larger effect on aggregate demand: $150 billion of tax cuts or $150 billion of government expenditure? 1 try left Government expenditure would have a than the tax cuts because effect on aggregate demand A. smaller; tax cuts increase aggregate demand and government expenditure decreases aggregate supply OB. smaller; tax cuts increase aggregate demand and government expenditure decreases aggregate demand Oc. larger; the tax cuts decrease aggregate expenditure while government expenditure increase aggregate demand D. larger; all government expenditure is spent while some of the tax cut is saved 3

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Quèstion 9 T2 G B GDP Refer to the diagram. Discretionary fiscal policy designed to expand GDP is illustrated by O A. the shift of curve T1 to T2. O B. a movement from a to c along curve T2. Oca movement from d to b along curve T1. O D. the shift of curve T2 to T1. Government Purchases and Tax Revenues
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ww. STEADY AS SHE GOES Read A G what a BALANCED BUDGET THE ECONOMY Eipcs- Reprinted with permission from The Detroit News O A. Government revenues will stay the same. B. Government revenues will decrease. Spotify What does a balanced budget mean In terms of government revenue? Question 142 of 190 OC. Government revenue equals its spending. O D. Government receives less revenue than it spends. O E. Government generates more revenue than it spends. Chilled C
pls answer urgent all question Q1,a,b,c . Q1-Suppose the government reduces taxes by $20 billion, that there is no crowding out, and that the marginal propensity to consume is ¾. a. What is the initial effect of the tax reduction on aggregate demand? b. What additional effects follow this initial effect? What is the total effect of the tax cut on aggregate demand? c.How does the total effect of this $40billion tax cut compare to the total effect of a $40 billion in governmentpurchases? Why?
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Attempts 10. Crowding out effect Keep the Highest/2 Suppose economists observe that an increase in government spending of $13 billion raises the total demand for goods and servic If these economists ignore the possibility of crowding out, they would estimate the marginal propensity to consume (MPC) to be Now suppose the economists allow for crowding out. Their new estimate of the MPC would be than their initial one. Grade It Now 3/4 1/4 4 52 billion. Save & Continue
QUESTION 32 The government can use in the form of O a contractionary fiscal policy, a decrease in government spending Ob. an expansionary fiscal policy, an increase in government spending C. an expansionary fiscal policy, an increase in corporate taxes da contractionary fiscal policy, a reduction in taxes to decrease the level of aggregate demand in the economy.
Which of the following can tax cuts influence? a. aggregate demand and aggregate supply b. aggregate demand but not aggregate supply c. aggregate supply but not aggregate demand d. neither aggregate demand nor aggregate supply