Suppose MPS=0.68 and MPI=0.17 19. What is the spending multiplier? 20. What is the level of real GDP if the government increases spending by 300 million dollars? 21. What is the level of real GDP if the government decreases spending by 350 million dollars?
Q: Question 2 Assuming that, due to an improved political outlook in the United States, some economists...
A: If governments do not impose trade barriers, the exchange rate between two national currencies is al...
Q: 33. A man buys a house and lot worth P2,000,000.00 if paid in cash. He agreed to pay a down payment ...
A: Given; Total price of house and a lot= P2000000 Down payment= P500,000 Amount paid at the end of one...
Q: 1 Country Cassava Fish Forest Land 10 Sandy Isle 15 10 The above data show the production for two co...
A: The table gives maximum amount of each good that can be produced if all the inputs were allocated to...
Q: The federal budget usually shows a surplus. True or False?
A: The economics as a study is based upon the idea that the resources which are present with the econom...
Q: Job search engines, such as Indeed and Monster.com, have enabled workers and companies to find each ...
A: The job search engines allows employees and businesses to connect more quickly and effectively at a ...
Q: Draw the market for electricity below with the knowledge that the energy market is the greatest glob...
A: Negative externalities arise when the use or production of an item has a negative effect on a third ...
Q: RobbinGood sells financial trades to retail traders (r) and institutional traders (i) whose demand c...
A:
Q: a Define 'terms of trade'. b What is the formula for the terms of trade index? c From the table belo...
A: The proportion of nation's export prices to its import prices is known as terms of trade . To purcha...
Q: Question 39 Menu costs of inflation O a) occur when people interpret nominal changes in prices as re...
A: Menu cost is a type of cost which occurs due to inflation.
Q: Which of the following statements best describes the Diminishing Returns to Labor: Select one: Oa. W...
A: Diminishing Return to labor:- Diminishing returns to labour, or principle of diminishing marginal pr...
Q: Describe how firms in Perfect Competition achieve both allocative and productive efficiency and thei...
A: There are two situations that arise in a perfectly competitive market, one is short-run equilibrium ...
Q: 20 18 16 14 12 10 8 D 4 2 0 1 2 3 4 5 6 7 8 9 10 11 12 Quantity Suppose that supply and demand at a ...
A: please find the answer below.
Q: Question 31 An economic downturn can lead mainly to which type of unemployment? a) structural O b) f...
A: Unemployment: Unemployment is a state of affairs in which all people who are actively looking for wo...
Q: If Mary Smith withdrew $100 from her savings deposit at Bank of America and kept it as cash, Gro...
A: The economics as a study is based upon the idea that the resources which are present with the econom...
Q: Consider the following Cournot model. The inverse demand function is given by p = 30 –Q, where Q = ...
A: Disclaimer :- as you posted multipart questions we are supposed to solve the first 3 questions as pe...
Q: Question-1 Bill can produce either tables or chairs. Bill can work up to 10 hours a day. His product...
A: The given table shows the production combination of tables and chairs when Bill works for 10 hours.
Q: an average 20%. of the motors are Produced by a manufacturing plant are fournol to Pass standard tes...
A: Given: Probability of success (p) = 0.20 Probability of failure (q)= 1-0.20 = 0.80
Q: b) If two regression models are fit to the same population having two different samples, what are th...
A: Regression is the methodology applied to test the relationship between two or more variables. One in...
Q: Price (dollars per bucket) 16 15 14 13 12 10 200 300 400 500 600 700 800 Quantity (buckets) The abov...
A: Answer: According to the above figure, due to tax the supply curve shifts to the left from S0 to S1...
Q: The market for pizza has the following demand and supply schedules: (see the attached table) a. Gr...
A: The market equilibrium is the condition where both economic forces like demand and supply curve matc...
Q: According to the midpoint method, the price elasticity of demand for oranges between point X and poi...
A: The formula for calculating price elasticity of demand using mid point method: ed = [(Q2-Q1)/(Q2+Q1)...
Q: A firm produces good Y with just 2 factors: Capital which is fixed in supply and labour which is var...
A: "Since you have asked a question with multiple sub-parts, we will solve the first three sub-parts fo...
Q: 6. Which of the following is most likely to have a high-income elasticity of demand? 1. Meals at cla...
A: Since you have asked multiple question, we will solve the first question for you. If you want any sp...
Q: 1. Consider the market for cell phones in Celltown. Suppose that the inverse demand curve is P = -2Q...
A: Disclaimer :- as you posted multipart questions we are supposed to solve the first 3 questions only ...
Q: Suppose the real interest rate is 0%. Daniel worked for 60 years and he retired for 20 years. When D...
A: Savings at retirement=Earning till retirement-Consumption till retirement
Q: Market for Internet Quantity Quantity Price ($ per Demanded Supplied (units month) (units per per mo...
A: Initially the demand is measured on X axis and supply is measured on y axis . The equilibrium is est...
Q: Conventional ways to reduce the deficit and the related problems
A: (Since you have asked many questions, we will solve the first one for you. If you want any specific ...
Q: Why do we use mind mapping
A: Mind mapping is the diagrammatic representation of information, task or concepts.
Q: The Marginal Benefit is zero when the Total Benefit curve is at its maximum. True or False
A: Marginal Benefit (MB): - it is the additional benefit derived from the consumption of additional uni...
Q: Depict the following scenario using a graph. Assume that MLB goes from having free agency in their l...
A: Introduction monopsony is the market when there is a single employer in the labor market. Because th...
Q: Suppose we have an economy with two sectors, wood and paper. • In order to produce $1 of wood, we us...
A: Internal demand for wood = Amount of wood we need to produce wood + Amount of wood we need to produc...
Q: The following graph shows the annual market for Florida oranges, which are sold in units of 90-pound...
A: Equilibrium in the market occurs at the intersection point of market demand and market supply curve....
Q: Data from the Bureau of Labor Statistics shows that U.S. income increased by 10% while consumer data...
A: Income elasticity of demand states that how much a good will be demanded in response of change in th...
Q: Suppose Tom is 20 years old. He works till 50 years old, retire, and live up to 80 years old. Wh...
A: GIVEN Tom is 20 years old. He works till 50 years old, retire, and live up to 80 years old. Whil...
Q: Under David Ricardo's theory of comparative advantage, assume you have the following hypothetical ma...
A: "Since you have asked a question with multiple sub-parts, we will solve the first three sub-parts fo...
Q: Data from the Bureau of Labor Statistics shows that U.S. income increased by 10% while consumer data...
A: Change in income=10% Change in quantity demanded=∆in quantity demandedInitial quantity demanded×100C...
Q: PART C.) In planning for your retirement, you expect to save $5,000 in year 1, $6,000 in year 2, and...
A: * SOLUTION :-
Q: What is the best approach to managing the economy, supply-side or demand-side economics? There are t...
A: Recession: A recession is a macroeconomic term that alludes to a critical decrease in everyday monet...
Q: Price Quantity (dollars per demanded bushel) (bushels) 8 2,000 7 4,000 6 6,000 5 8,000 4 10,000 3 12...
A: At $6 the quantity demanded is 6000 bushels, at $7 the quantity demanded is 4000 bushels.
Q: QS At this price there is a units. Who gains from the price floor?
A: A price ceiling and price floor are considered to be price controlling mechanisms that are when the ...
Q: billion. This economy's gross domestic product (GDP) equals O a) $1,515 O b) $850 Oc) $1,400 O d) $1...
A: Gross domestic product is the total value of goods and services at market prices in a country over a...
Q: If the current dollar to Peso exchange rate is $1 = 40 Pesos and in the forward market it is $1 = 30...
A: Here, it is given that, the current exchange rate between dollar to pesos is $1=40, and forward exch...
Q: Why is it impossible for a profit maximizing monopoly to produce an output level which is allocative...
A: Allocative efficiency means that all products in the market are distributed optimally for the purcha...
Q: A consumer has product happiness function c1*c2. When this consumer eats 5 apples and 3 bananas, the...
A: Happiness function: - It shows the functional relationship between the consumption of goods and serv...
Q: Construct a well-labeled diagram of supply and demand in the market for loans that depicts an equili...
A: Introduction Credit rationing has decided by Fed. They fixed or limit credit in the market for diffe...
Q: Express your thoughts/ideas regarding the given topic "My home.
A: ANSWER: MY HOME : * Home is place where we stay with our families and live safely :The saying East...
Q: Suppose that a consumer has $200 to spend on two goods: beer and pretzels. The price of beer is $6.0...
A: The ratio of two different commodities' prices is referred to as a relative price. These prices are ...
Q: If the price elasticity of demand is 5.0 then a 10 percent increase in the price results in a decrea...
A: Price elasticity of demand is a measurement of the change in the consumption of a product in relatio...
Q: Which of the following statements about the Bipartisan Campaign Reform Act is true? Select the corre...
A: The McCain-Feingold Act is one of the few government regulations that manage the financing of politi...
Q: If you were in a position to run an economy, what steps would you take to raise our rate of economi...
A: Answer: *If i were in a position to run an economy *The following steps would be undertaken to raise...
Step by step
Solved in 2 steps
- Why is the tax multiplier smaller than the government spending multiplier?Use the following equations for exercises 16–18. C= $100+.8Y I= $200 G= $250 X = $100.2Ythe new equilibrium level of real GDP if government spending increases by $150? 18. What is the new equilibrium level of real GDP if government spending and taxes both increase by $150? 19. Make a graph showing the spending and tax revenue of your state government for as many years as you can find (use the government of your home country if you are not from the United States). What trends do you notice? What spending categories make up the largest share of the state budget? What are the largest sources of revenue?
- C = 450 + 0.4YI = 350G = 150X = 70Z = 35 + 0.1YT = 0.15YYf = 1550(Hint: use the multiplier method)Q.2.4 Calculate the tax revenue to the government of this country when the economyremains in equilibrium.Q.2.5 Calculate what the new equilibrium income should be if the government of thiscountry decides to cancel all taxes, implying the tax rate would now be 0%.Q.2.6 Before the government decreased the tax rate, how much of governmentspending was required to bring the economy to full employment?1. If an economy has an MPC of 0.9 what is the multiplier? 2. If an economy has an MPS of 0.2 what is the multiplier? 3. If an economy has an MPC of .08 and the government needs to close a recessionary gap of 20 Billion dollars how much government spending should occur? 4. If an economy has an MPS of .05 and the government needs to close an inflationary gap of 10 Billion dollars how much should government spending decrease?Government spending in Robok is $140 billion, and its only tax is an income tax with a marginal tax rate of 0.2. a. The balance on the government's budget at a GDP level of $450 billion is a (Click to select) : of $ billion. b. The balance on the government's budget at a GDP level of $800 billion is a ( (Click to select) : of $ billion. C. At what level of GDP will the economy of Robok have a balanced budget? Robok will have a balanced budget at a GDP level of $ [ ]billion.
- Government expenditures represents one of the injections of expenditure. Explain how an increase in government spending may have a multiplier effect in the economy.suppose the government wishes to illuminate recessionary of a gdp of 100 billion in the MPC is .075. How much must the government increase in spending? Instead of increasing government spending by the amount you calculated what would be the effect of the government decreasing taxes by this amount explain?Suppose that real GDP for an economy is currently 16,000 billion, the government purchases multiplier is 2.2 and the tax multiplier is -1.2. If the government deploys additional spending of 600 billion and cuts taxes by 120 billion, where will GDP end up (in billion)?
- Suppose the following list of events describes all of the economic activity resulting from an increase in government spending. Suppose that at each step after the initial one, the marginal propensity to consume is 0.67 and the tax rate is 16%. Step 0. The government spends $8500 on meat to host a very large dinner for foreign diplomats. Step A. The butcher takes the income earned by selling the meat, saves some, and spends the rest on a wedding cake for his daughter. Step B. The baker who produced the wedding cake saves some of her earnings and uses the rest to purchase beautiful candlesticks as gifts for all of her friends. Step C. The local candlestick maker saves some of his revenue for retirement and spends the rest on building materials to improve his house. Instructions: Modify the settings in the interactive tool to represent this event. Then click "Spending Rounds" and use the table to answer the following questions. Round answers to the nearest cent, if necessary. How much…Calculate the government spending multiplier and the tax multiplier if the MPC is 0.6. Show your workSuppose the following list of events describes all of the economic activity resulting from an increase in government spending. Suppose that at each step after the initial one, the marginal propensity to consume is 0.62 and the tax rate is 8%. Step 0. The government spends $8500 on meat to host a very large dinner for foreign diplomats. Step A. The butcher takes the income earned by selling the meat, saves some, and spends the rest on a wedding cake for his daughter. Step B. The baker who produced the wedding cake saves some of her earnings and uses the rest to purchase beautiful candlesticks as gifts for all of her friends. Step C. The local candlestick maker saves some of his revenue for retirement and spends the rest on building materials to improve his house. Instructions: Modify the settings in the interactive tool to represent this event. Then click "Spending Rounds" and use the table to answer the following questions. Round answers to the nearest cent, if necessary. How much does…