The savings rate in a country is 25%. The government wants to expand GDP by $300 Billion. How much must they increase Government spending to reach that goal?
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- Using diagrams can you please show how the rise in the household saving rate can cause a fall in GDP, and how a fiscal stimulus might off this? (thank you - will thumb up answer when I see it)Suppose there is an increase in budget deficit, what happens to intrest rates and national savings ?The government of a country decides to double its current level of spending, causing real GDP to increase from $20,000 to $120, 000. What is the percent change in real GDP?
- Which economic policies affect a government's budget and include the increase or decrease the money supply?The following transactions took place in Ecoland in 2018: Trillions of 2014 dollars Government purchases 400 Taxes 360 Firms’ profits 300 Investment 400 Consumption expenditure 1000 Wages paid to labor 1400 Exports 300 Government transfer payments 150 Imports 350 (a). Calculate Ecoland’s real GDP in 2018, i.e., GDP measured in 2014 $. (b) How much do households save in Ecoland? Is it enough to finance domestic investment? (c) Does the government have a balanced budget? If not, what is the surplus or deficit? (d) If Ecoland’s nominal GDP in 2018 is $1900 trillion, how much inflation has Ecoland experienced since 2014?Which system of taxes is best? Why does that system is the most effective way for the government to generate revenue and maintain our economy's growth?