Disposable income ________ when ________. a. decreases; taxes increase b. decreases; transfer payments increase c. increases; government expenditures decrease d. decreases; aggregate income increases

Disposable income when . a. decreases; taxes increase b. decreases; transfer payments increase c. increases; government expenditures decrease d. decreases; aggregate income increases

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

ChapterD: The Expenditure-output Model

Section: Chapter Questions

Problem 24CTQ: Exercise D24 Compare two policies: a tax cut on income or an increase in government spending on...

See similar textbooks

Related questions

Q: According to ISO 17025:2017, an accredited organisation is required to inform HKAS Executive of any ...

A: This is a standard of measurement that examines the accuracy of any international document and also ...

Q: 21. If the first one offers to lend him #10,000 payable after one year, how much money will he pay i...

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any sp...

Q: the real interest rate is 2% and expected inflation is 3%, the nominal interest rate is O-1%. 1%.. 6...

A: Given information, Real interest rate: 2% Expected inflation rate: 3% To find: Nominal interest ra...

Q: Automatic stabilizers are at work if, as real GDP increases, ________. a. transfer payments decreas...

A: When talking about automatic stabilizers, they are the government actions that does not require to c...

Q: Solve all questions otherwise I will give you downvote

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer one question at a ti...

Q: 1. It doesn't matter how far apart we might be geographically, economically or culturally, we're all...

A: Global economy: A worldwide economy is a financial association laid out between the most compelling ...

Q: market for N-95 masks is perfectly competitive. Market Demand is given by Q=434-2P and Market Supply...

Q: Reasons for supply curves being positively sloped include: A) typically, as output rises, unit cost...

A: Supply refers to the quantity of the good which the producers are willing to produce an offer for sa...

Q: Question 21 What would happen to the equilibrium price and quantity of lattés if coffee shops began ...

A: We can see the given question.

Q: 1) What should be the selling price per unit, if the break-even point should be brought down to 10,0...

A: Disclaimer :- as you posted multiple questions we are supposed to solve only the first one as per g...

Q: Instructions: Round your responses to the nearest billion, If you are entering any negative numbers ...

A: The given table gives information about the nominal GDP and GDP deflator for year 2000 to 2019.

Q: Given the schedule, find the demand function/equation. * Price (P) Quantity Quantity Demanded (Qd) S...

Q: how do I illustrate an increase in a price of an item resulting in consumers buying another item

A: Law of demand says the more of goods is purchased at low price and vice versa keeping other factors ...

Q: TRUE OR FALSE? Economic Development is an independent subject and one of the branches of economics....

A: 1) Answer:- True. Explanation:- Development economics is a field that studies the financial implicat...

Q: Expected Utility formulation was initially proposed as a solution to the St. Petersburg paradox (or,...

A: ANSWER The paradox known as the St. Petersburg Paradox is obtained by a simple coin flip game. The r...

Q: You are a risk-averse investor with a CRRA utility function. You are faced with the decision to inve...

A: Total wealth= £1000000 Returns from investing in riskless asset= 5% Risky asset which either generat...

Q: Figure 2: Circular flow diagram C Refer to figure 2. Declan T. works as an attorney for a corporatio...

A: The circular flow of income is a model of the economy in which the major exchanges are represented a...

Q: Movement of Labor and Capital Between Countries In the short‑run specific‑factors model, examine the...

A: a. The decrease in labour supply will decrease the supply curve for labour from S to S1. Therefore, ...

Q: Suppose that in Year 1 an economy produces 100 golf balls that sell for $3 each and 75 pizzas that s...

A: Value of the money shows how much the money value has increased/decreased. So we divide the current ...

Q: It cost P66,327 at the end of each year to maintain a section of Kennon road in Baguio City. If mone...

Q: Bank managers lend the excess reserves created when new deposits come in because they want to a. cr...

A: Excess Reserves are the difference between actual reserves and desired reserves.

Q: . Pankti is risk averse. Without insurance, she receives income of $40,000 with a prob ability of .0...

A: Given , Probability of getting 40,000 = 0.02 Probability of getting 60,000 = 0.98 Pankti should pu...

Q: What is Philippines' national reclamation plan?

A: In 2017, the Manila regional government reported that it has endorsed four reclamation projects: the...

Q: n an economy population growth iS 3%, the growtn rate oT capital is 5%, the output in the economy is...

A: Population growth rate = 3% => % change in N =3 -------------------- growth rate of capital = 5% ...

Q: In Michael Porter's Diaond Model of National Advantage, when a country has 6 months with night and 6...

A: When talking about Michael Porter's Diamond Model, it can be said that it is an attempt to explain t...

Q: Beginning with a capital input of 4 and a labor input of 49, show that the marginal product of labor...

A: q = 100 x K0.75L0.25 Marginal product of labor, MPL = dq / dL = 100 x 0.25 x (K / L)0.75 = 25 x (K /...

Q: 1.Which of the following is held constant along a demand curve? A) Tastes and preferences. B) ...

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any sp...

Q: A. Looking at the supply sched, which firms apply to the law of supply? B. If these are the only fir...

A: Here we calculate the following by using the given information and conclude the terms , so the calcu...

Q: 6. (See week 5 Autumn Term) Assume you can work as many hours you wish at £12 per hour (net of tax)....

A: ANSWER Assume you can work as many hours you wish at £12 per hour (net of tax). If you do not wor...

Q: Many MNCs locate in cities and hence cause many migrants to move from the countryside. What is this ...

A: Migration is defined as the progression of individuals over a certain distance (or as nothing else f...

Q: Please answer this question

A: Beginning End D (d-dbar)^2 53.82 54.19 0.006875 0.002943 77.02 55.7 -0.27681 0.052640 109 102....

Q: n what way is applied economics important in tackling economic issues of the country?Philippines

A: In Philippines the applied economies has been determined in the likely outcomes and it is possible i...

Q: How did Europe's Industrial Revolution contribute to the Age of Imperialism? Select THREE answers th...

A: When talking about European Industrial Revolution, it was the situation when European countries were...

Q: A bank's required reserves are calculated by multiplying ________. a. its deposits by the required ...

A: Option A Required Reserves = Deposits * Required Reserve Ratio

Q: . Can you sense the contrast between the Progressive reforms at home, and United States actions in L...

A: ANSWER The time of US history from the 1890s to the 1920s is generally alluded to as the Progres...

Q: Question 13 The use of theory and observation is more difficult in economics than in sciences such a...

A: * ANSWER :- (13) From the given information the answer is provided as below As per guidelines I a...

Q: Consider the following decision problem with monetary outcomes: State: Si S2 Probability: a $100 $0 ...

A: (a) A risk neutral individual will pay the expected value of the lottery. Therefore, For act "a" Ann...

Q: 1. Consider the following 2 person game H M H 0,3 3,0 3,0 M 2,0 | 0,2 2,0 L 1,0 1,0 0,1 (a) Are ther...

Q: Mr. Alhambra has instructed his bank to establish a trust fund that will provide P10,000 per year fo...

A: Interest= 5% P= in 5 years is 10,000 10 yrs is 8,000

Q: What comparisons and contrasts can you make with immigration today from this article ? http://histor...

A: Immigration refers to the movement of people from their home country to another country of the world...

Q: What are the current situation of agriculture and home economics? How these two contributes to the e...

A: Economics: It aspects is the investigation of shortage and its suggestions for the utilization of as...

Q: Explain how our standard of living depends upon our level of real GDP per person but there might not...

Q: Calculate the future equivalent at the end of 2012 at 8% per year, of the following series of cash f...

A: Futures Equivalent: The number of futures contracts required to match the risk profile of an option...

Q: Average revenue is. A) price multiplied by the number of units sold. B) the extra revenue gain...

A: The mathematical average of income earned per unit or per user is known as average revenue. The aver...

Q: 1. Assume that the production of wine requires land (T) and labor (L) and it follows diminishing ret...

A: The diminishing returns to scale means that each added input (labor) will result in a decreasing rat...

Q: In reality the balance of payments may not balance due to A) net trading by the Bank of Englan...

A: Answer: Balance of payment records all the transactions that take place between the residents of a c...

Q: qualities explain in 5-10 sentences

A: Equality is the situation when there will be equal distribution of each and everything like sex , ge...

Q: The output from a McDonalds restaurant would be classified as ________ production.A) quaternary B) p...

A: McDonald's is an organization that provides food products to the people as provide a place to sit an...

Q: Use Fisher 's form find the price index number of the following table: Commodity Unit Base Year Curr...

A: To compute the price index through Fisher's approach, a specific formula is: ∑P1Q0∑P0Q0×∑P1Q1∑P0Q1××...

Question

Disposable income ________ when ________.

a. decreases; taxes increase

b. decreases; transfer payments increase

c. increases; government expenditures decrease

d. decreases; aggregate income increases

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1I

Step 2

Step 3

Step 4

Step 5

Trending now

This is a popular solution!

Step by step

Solved in 5 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

If MPC = 0.5, a simultaneous increase in both taxes and government spending of $20 will a. decrease GDP by $20 b. increase GDP by $20 c. decrease GDP by $40 d. increase GDP by $40
How to calculate the level of GDP base on the MPC & MPS? Historical durations of recessions? The effect of foreign trade on the U.S. economy? Importance of who holds the public debt?
1. Suppose a closed economy hasnational income of $50 million,Investment of $2 million,Inflation rate of 5%, net tax rateof 15% and a budget surplus of$4 million. Find value of government purchases (G).
For the economy as a whole Income must be more than expenditures. Select one: a. False b. True
C= C0+cYd. Investment, government spending, taxes and transfer payment is autonomous. Autonomous taxes and government spending increase in the same amount. How do government budget and equilibrium income change?
How do budget surpluses and budget deficits affect the consumption and investment components of GDP
Increase in tax by the government: a. None of these b. Decreases the consumption by individuals c. Increases the saving by individuals d. Increases the consumption by individuals
Governments attempt to stimulate economics by offering firms temporary investment taxcredits. Explain the effects of this measure on investment spending. Would you expect apermanent or temporary measure to have more effect?
ECONOMICS An economy has neither imports nor income taxes. The MPC is 0.75 and the real GDP is $120 billion. The government increases expenditures by $4 billion. The multiplier is _____ and the change in real GDP from the increase in government expenditures is _____ billion.
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?
Consumption function: C=500+0.8Yd , net tax: T=500, government spending: G=500, investment: I=1200, export: X=500 and imprt: M=700. According to this Calculate the equilibrium level of output(Ye)
Exercise D24 Compare two policies: a tax cut on income or an increase in government spending on roads and bridges. What are both the short-term and longâ€”term impacts of such policies on the economy?