A nation's potential output/GDP is best described as: The maximum level of output/GDP which can be produced with a nation's resources. The maximum growth rate of output/GDP a nation can sustain by keeping both taxes and interest rates low. The maximum growth rate of output/GDP a nation can sustain by keeping interest rates low. The maximum growth rate of output/GDP a nation can sustain by keeping taxes low. A high-employment level of output/GDP.
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- When taxes increase, consumption _____, business investment ______, and real GDP output ______. A. decreases shifting aggregate demand left; decreases shifting aggregate supply left; decreases reducing economic growth, and lowering the standard of living. B. increases shifting aggregate demand right; increases shifting aggregate supply right; increases resulting in sustained economic growth, and a higher standard of living. C. decreases shifting aggregate demand left; decreases shifting aggregate supply left; increases resulting in sustained economic growth, equality and prosperity for all. D. None of the answers are correct.Canadian real GDP unexpectedly accelerated to a 4.5 percent pace in the second quarter of 2017. This faster-than-expected growth was the fastest among Group of Seven countries. It was led by the biggest rise in household spending since before the 2008–2009 global recession.How would an unexpected increase in the economic growth rate influence federal government outlays? Federal government outlays would ______ because ______ .A. decrease; government expenditure on goods and services would fallB. decrease; transfer payments such as unemployment benefits would fallC. increase; debt interest would increaseD. not change; the economic growth rate doesn't influence federal government outlays How would an unexpected increase in the economic growth rate influence federal government revenues? Federal government revenues would ______ because ______ .A. not change; the economic growth rate doesn't influence federal government revenuesB. increase; taxable incomes would rise and tax…True or False... When savings equals investment, reducing savings and increasing consumption is especially effective in stimulating output.
- The government of a small island country is concerned about a few things and has hired you as an economic consultant to do some economic analysis for 2020. First, the government is worried that the inflation rate in the country is too high. This could reduce the purchasing power and the standards of living of the residents. Second, it suspects that the residents are importing too much goods and services from foreign countries. This could result in unemployment in the island. Third, and finally, it fears that the entrepreneurs are making too much profit and this could lead to unrest in the country. The government has been able to calculate the following statistics (converted to dollars), which you will use to carry out your assignment. All the data pertain to 2020. All the numbers except for real GDP are in nominal terms. The base year in this country for the calculation of real GDP is 2019. GDP Information: Nominal GDP = $106,000,000 Real GDP = $100,000,000 Expenditures: Consumption =…The government of a small island country is concerned about a few things and has hired you as an economic consultant to do some economic analysis for 2020. First, the government is worried that the inflation rate in the country is too high. This could reduce the purchasing power and the standards of living of the residents. Second, it suspects that the residents are importing too much goods and services from foreign countries. This could result in unemployment in the island. Third, and finally, it fears that the entrepreneurs are making too much profit and this could lead to unrest in the country. The government has been able to calculate the following statistics (converted to dollars), which you will use to carry out your assignment. All the data pertain to 2020. All the numbers except for real GDP are in nominal terms. The base year in this country for the calculation of real GDP is 2019.Reduction in government expenditure A) has no impact on planned investment B) will lead to a decrease in planned investment due to increasing interest rate C) Can lead to an increase in planned investment due to increasing interest rate D) will not be productive for the economy
- 2020 Q2 GDP (in 2020 Q3 Nigerian currency) 790,000 million 2020 Q2 GDP (in 2018 Nigerian currency) 835,000 million 2020 Q3 Consumption (in 2020 Q3 Nigerian currency) 369,000 million 2020 Q3 Central (Federal) Government Spending (in 2020 Q3 Nigerian currency) 111,000 million 2020 Q3 Local Government Spending (in 2020 Q3 Nigerian currency) 114,000 million 2020 Q3 Investment (in 2020 Q3 Nigerian currency) 223,000 million 2020 Q3 Exports (in 2020 Q3 Nigerian currency) 255,000 million 2020 Q3 Imports (in 2020 Q3 Nigerian currency) 277,000 million 2020 Q3 Consumption (in 2018 Nigerian currency) 357,000 million 2020 Q3 Central (Federal) Government Spending (in 2018 Nigerian currency) 106,000 million 2020 Q3 Local Government Spending (in 2018 Nigerian currency) 108,000 million 2020 Q3 Investment (in 2018 Nigerian currency) 211,000 million 2020 Q3 Exports (in 2018 Nigerian currency) 328,000 million…2020 Q2 GDP (in 2020 Q3 Nigerian currency) 790,000 million 2020 Q2 GDP (in 2018 Nigerian currency) 835,000 million 2020 Q3 Consumption (in 2020 Q3 Nigerian currency) 369,000 million 2020 Q3 Central (Federal) Government Spending (in 2020 Q3 Nigerian currency) 111,000 million 2020 Q3 Local Government Spending (in 2020 Q3 Nigerian currency) 114,000 million 2020 Q3 Investment (in 2020 Q3 Nigerian currency) 223,000 million 2020 Q3 Exports (in 2020 Q3 Nigerian currency) 255,000 million 2020 Q3 Imports (in 2020 Q3 Nigerian currency) 277,000 million 2020 Q3 Consumption (in 2018 Nigerian currency) 357,000 million 2020 Q3 Central (Federal) Government Spending (in 2018 Nigerian currency) 106,000 million 2020 Q3 Local Government Spending (in 2018 Nigerian currency) 108,000 million 2020 Q3 Investment (in 2018 Nigerian currency) 211,000 million 2020 Q3 Exports (in 2018 Nigerian currency) 328,000 million…2020 Q2 GDP (in 2020 Q3 Nigerian currency) 790,000 million 2020 Q2 GDP (in 2018 Nigerian currency) 835,000 million 2020 Q3 Consumption (in 2020 Q3 Nigerian currency) 369,000 million 2020 Q3 Central (Federal) Government Spending (in 2020 Q3 Nigerian currency) 111,000 million 2020 Q3 Local Government Spending (in 2020 Q3 Nigerian currency) 114,000 million 2020 Q3 Investment (in 2020 Q3 Nigerian currency) 223,000 million 2020 Q3 Exports (in 2020 Q3 Nigerian currency) 255,000 million 2020 Q3 Imports (in 2020 Q3 Nigerian currency) 277,000 million 2020 Q3 Consumption (in 2018 Nigerian currency) 357,000 million 2020 Q3 Central (Federal) Government Spending (in 2018 Nigerian currency) 106,000 million 2020 Q3 Local Government Spending (in 2018 Nigerian currency) 108,000 million 2020 Q3 Investment (in 2018 Nigerian currency) 211,000 million 2020 Q3 Exports (in 2018 Nigerian currency) 328,000 million 2020 Q3 Imports (in 2018 Nigerian currency) 260,000 million 2020 Q2 Population 5.37…
- 2020 Q2 GDP (in 2020 Q3 nigerian currency) 790,000 million 2020 Q2 GDP (in 2018 nigerian currency) 835,000 million 2020 Q3 Consumption (in 2020 Q3 nigerian currency) 369,000 million 2020 Q3 Central (Federal) Government Spending (in 2020 Q3 nigerian currency) 111,000 million 2020 Q3 Local Government Spending (in 2020 Q3 nigerian currency) 114,000 million 2020 Q3 Investment (in 2020 Q3 nigerian currency) 223,000 million 2020 Q3 Exports (in 2020 Q3 nigerian currency 255,000 million 2020 Q3 Imports (in 2020 Q3 nigerian currency 277,000 million 2020 Q3 Consumption (in 2018 nigerian currency) 357,000 million 2020 Q3 Central (Federal) Government Spending (in 2018 nigerian currency) 106,000 million 2020 Q3 Local Government Spending (in 2018 nigerian currency) 108,000 million 2020 Q3 Investment (in 2018 nigerian currency) 211,000 million 2020 Q3 Exports (in 2018 nigerian currency) 328,000 million…Read the following premise carefully and answer the questions specifically and in detail, you must answer the request with the correct information, showing that you understand and can properly apply the concepts. Try to address all the elements of each question and always express the answers in your own words. "In the face of unstable economic growth due to a recession or accelerating inflation, potential problems with large public debt include higher income inequality, reduced economic incentives, and crowding out of private investment". 3. Expresses in detail the effects of expansionary and contractionary fiscal policy on income and the price level.2020 Q2 GDP (in 2020 Q3 krone) 790,000 million 2020 Q2 GDP (in 2018 krone) 835,000 million 2020 Q3 Consumption (in 2020 Q3 krone) 369,000 million 2020 Q3 Central (Federal) Government Spending (in 2020 Q3 krone) 111,000 million 2020 Q3 Local Government Spending (in 2020 Q3 krone) 114,000 million 2020 Q3 Investment (in 2020 Q3 krone) 223,000 million 2020 Q3 Exports (in 2020 Q3 krone) 255,000 million 2020 Q3 Imports (in 2020 Q3 krone) 277,000 million 2020 Q3 Consumption (in 2018 krone) 357,000 million 2020 Q3 Central (Federal) Government Spending (in 2018 krone) 106,000 million 2020 Q3 Local Government Spending (in 2018 krone) 108,000 million 2020 Q3 Investment (in 2018 krone) 211,000 million 2020 Q3 Exports (in 2018 krone) 328,000 million 2020 Q3 Imports (in 2018 krone) 260,000 million 2020 Q2 Population 5.37 million 2020 Q3 Population 5.38 million Calculate…
