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A: Fiscal policy is the kind of policy using which government adjusts its spending levels and tax rates…
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A: Here given, Income level of the economy is at 50 At equilibrium point aggregate expenditure (i.e…
Q: Which of the following statements is true?
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A: Fiscal policy is implemented by the government in the form of change in taxes and spending. Monetary…
Q: An economist who claims that an increase in government spending would result mainly in a higher…
A: An increase in government spending would result mainly in a higher price level.
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A: Government can able to control the fluctuation in an economy by using expansionary and…
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Q: If the MPS in an economy is 0.25, government could shift the aggregate demand curve leftward by $60…
A: MPS=0.25 MPS or marginal propensity to save measures how change in income affects change in savings.…
Q: Suppose the economy is in a recession. The economy needs to expand by at least $300 billion, and the…
A: Answer; = $ 90 billion
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A: An economy is at full employment when rate of actual spending is equal to full employment GDP.
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A: Recessionary Gap: The term recessionary gap refers to the economic situation when the real GDP of…
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A:
Q: Suppose the economy has fallen into a severe recession. From a macroeconomic theory point of view…
A: Answer: c (increase government spending on goods and services) Explanation: A recession is a…
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A: The fiscal policy is the policy of the government in the economy to control the spending levels of…
Q: Which of the following is carried out in an expansionary fiscal policy? a. Higher taxes and higher…
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Q: the MPS in an economy is 0.25, government could shift the aggregate demand curve leftward by $60…
A: The multiplier value will decide actual level of change expenditure to produce certain effects.
Q: The economy is in a recession. The government enacts a policy to increase spending by $4 billion.…
A: The correct answer is given in the second step.
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A: Real GDP is the value of final goods and services produced in the economy within a given period of…
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A: MPS is the proportion of increase in income that goes into saving i.e. MPS = ΔS/ΔY We are given MPS…
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A: Discretionary fiscal policy is a policy in which the government made changes in its spending and/or…
Q: If the MPC in an economy is 0.6, government could shift the aggregate demand curve rightward by $30…
A: MPC is the marginal propensity to consume. It is that part of income or increase in income which is…
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A: Given: MPC = 0.8 MPI= 0.10 Tax rate= 0.25 Increase in autonomous spending = 250 units.
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A: MPC = 0.8 Potential output = P800 billion Real GDP = P700 billion
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A: The keynesian equilibrium occurs where the aggregate expenditure is equal to the output or where the…
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A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…
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Q: The multiplier effect occurs when: Group of answer choices a. the planned spending in the economy…
A: The multiplier effect occurs when an initial change in autonomous spending led to a greater final…
Q: (Fiscal Policy) Chapter 11 shows that increased government purchases, with taxes held constant, can…
A:
Q: Please answer fast
A: Given, Autonomous consumer spending = $200 billion. Autonomous investment spending = $100 billion.…
Q: When comparing an increase in government spending on goods and services to an increase in private…
A: The gross domestic product measures the market value of all the final goods and services produced in…
Q: If government purchases increase by $20 billion and aggregate demand shifts rightward by $30 billion…
A: the MPC for this economy is 0.33
Q: Examine the following policies and determine which would decrease the level of aggregate demand.…
A: Answer to the question is as follows:
Q: Keynesian economists assert that a GDP gap = $6 trillion needs an increase in government spending of…
A: The GDP change is higher than the change in government spending because of the multiplier effect.
Q: When households cut back on their spending, then in the short run we tend to see the price level…
A: In an economy, households play significant role to determine the equilibrium price and output…
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A: With the increase in government expenditure, Aggregate Demand shifts to the right by initial…
Q: Draw a macro equilibrium using AD/AS. Clearly label all important points on your graph.
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Q: Now consider an economy in which the government lowers its spending. In the long run, the result…
A: An increase in government spending is an expansionary fiscal policy measure whereas a decrease in…
As shown in Exhibit 2, this economy is in macro equilibrium at:
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- According to Table 19.7, how often have recessions occurred since the end of World War II (1945)?(1) gross domestic product 2,582,198 gross national income 2,622,315 national disponsable income 2,199,701 final consuption 1,694,623 give the information in the above data , what is the national saving? (a) 927,692 million SR (b) 887,575 million SR (c) 505,078 million SR (d) no correct answerr is provideRyan's income is $1,700 and his net taxes are $700. What is his disposable income? Answer in dollars, no commas (so if the answer is $5,000, input 5000).
- The Reliable Aircraft Company manufactures small, pleasure-use aircraft. Based on past experience, sales volume appears to be affected by changes in the price of the planes and by the state of the economy as measured by consumers' disposable personal income. The following data pertaining to Reliable's aircraft sales, selling prices, and consumers' personal income were collected: Year Aircraft Sales Average Price Disposable Constant Income (Dollars) (In constant 2006 dollars, billions) 2006 525 16,800 610 2007 450 8,000 610 2008 400 8,000 580 The arc price elasticity of demand between 2006 and 2007 is: The arc income elasticity of demand between 2007 and 2008 is: Assume that these estimates are expected to remain stable during 2009. Forecast 2009 sales for Reliable assuming that its aircraft prices remain constant at 2007 levels and that disposable personal income will increase by 7%. Also assume that the arc…13 Which national income estimation method needs information such as indirect taxes, depreciation and intermediate consumption? a. Net output b. Income c. Expenditure d. FactorPlease answer correct calculation asap plz a and b Don't answer by pen paper plz
- Find the disposable income when the consumption is $210 in the saving our $ 190Assume a closed economy where the level of investment is 300 and savings function is s = -30+ 0.15y calculatr the equilibrium level of income8- A person’s disposable income decreases, and his personal income remains unchanged. This is because of ______. a. Decreased personal taxes b. Increased personal taxes c. Increased corporate taxes d. Unemployment reasons
- 1. a. Explain consumption and saving function by using numerical example and diagram.A) :What is S if Y=200, AE=260, C=220 and I=40 in an imaginary economy?B) : If the disposable income is 200 and the consumption expenditure is 220 in an imaginary economy, what are the savings? C) University Café earned 20 TL by selling 10 bagels in one day. The total cost of 1 bagel is 0.5 TL. It is assumed that the cafe has no other costs. What is the firm's accounting profit?assume elsa has current income of $50000 and expects income of $60000 next period. interest rate is 6% elsa desires to have the same amount of consumption expenditure during both periods. in the two period certainty framework, determine how much elsa's expenditures are during each period is elsa a saver or spender