EBK MACROECONOMICS
4th Edition
ISBN: 9781319117016
Author: KRUGMAN
Publisher: Worth Publishers
expand_more
expand_more
format_list_bulleted
Question
Chapter 13, Problem 1QFT
To determine
Concept Introduction:
Fiscal Policy:
It is a measure taken by the government to influence the economy of any nation. It is done by the government to adjust the spending level of the economy also influence the tax rate.
Political reaction and method to assess value of a fiscal stimulus project.
Expert Solution & Answer
Explanation of Solution
The political reaction is unpleasant for this project.
- The S plant can produce power even when there is no sun because this plant collects the heat when sun is present and stored heat is finally converted into electricity when it is required. This process is done with the help of mirrors.
- With the rise in
demand for electricity, the importance of plant is increasing, but the political reaction is unpleasant for this project as it is proved very difficult to invest in this project as many cities seems to be against the ones who provides loan.
- The government subsidies and the government policies will tell whether the decision of setting the plant is valid or not. The investment on the road and school project is desired. Therefore, this investment will be considered even if fiscal deficit is present.
- Therefore, from the case it can be concluded that the work, which is to be performed by S is done in very appropriate manner, as it have even generated employment.
Want to see more full solutions like this?
Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Knowledge Booster
Recommended textbooks for you
- Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSONEngineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
- Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage LearningManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage LearningManagerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education