Homework Answers
Lower Taxes and Increase spending are the correct answers.
when government reduces the tax rates, it will make a good response in business and employment sector both in private sector and public sector.That will reduces the unemployment rate.
Inflation and unemployment has an inverse co-relationship.when inflation increases,unemployment decreases and vice versa.
Increases in spending results increase in inflation.As we discussed above it will leads to decrease in unemployment status.
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Suppose unemployment was too high. What are two actions the government could do to lower unemployment?...
1.What could the Federal Reserve have done to fight the Great Depression? a.Increase the money supply...
1.What could the Federal Reserve have done to fight the Great Depression? a.Increase the money supply to reduce the interest rate. b.Increase the money supply to raise the interest rate. c.Decrease the money supply to reduce the interest rate. d.Decrease the money supply to raise the interest rate. 2. How could the government have used fiscal policy to fight the Great Depression? a.Reduce taxes, raise transfers, raise government purchases. b.Reduce taxes, reduce transfers, reduce government purchases. c.Raise taxes, reduce transfers,...
IS-LM What combination of policies would best reduce inflation? a) Increase taxes, sell government bonds b)...
IS-LM What combination of policies would best reduce inflation? a) Increase taxes, sell government bonds b) Decrease taxes, buy government bonds c) Decrease taxes, lower the reserve ratio d) Decrease government spending, lower the discount rate e) Increase government spending, raise the discount rate Use the IS-LM model. Your policy instruments are: Taxes, Government Spending, and the Money Supply. Describe a policy or set of policies that achieve the following objectives. Your answer should include a diagram to show how...
und unemployment benefits axes should not be increased since that will lower spendin The unemployment rate...
und unemployment benefits axes should not be increased since that will lower spendin The unemployment rate is 4.8 percent. Print Which of the following represents a normative economic statement? The unemployment rate is higher than it was last year. O The government will have a larger deficit if unemployment O The government ought to lower taxes so people have more money. ○ Higher taxes will lower spending. benefits are ext 12,828
Which of these actions can the U.S. government take in order to slow down a demand-pulled...
Which of these actions can the U.S. government take in order to slow down a demand-pulled inflation? Select one: a. Raise government spending on education b. Raise minimum wage c. Print more money d. Raise corporate taxes e. Lower interest rates
Now, suppose there is an increase in government spending. How would this change inflation and unemployment...
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1. Suppose the federal government observes a decrease in net exports. Examine this event in terms...
1. Suppose the federal government observes a decrease in net exports. Examine this event in terms of the aggregate demand and aggregate supply model. a. The decrease in net exports will cause (Click to select) [a decrease in short-run aggregate supply / an increase in short-run aggregate supply / an increase in aggregate demand / a decrease in aggregate demand]. b. This will lead to (Click to select) [a decrease / an increase] in the price level and (Click to select)...
1. The economy is experiencing high unemployment and a low rate of economic growth and the...
1. The economy is experiencing high unemployment and a low rate of economic growth and the Bank of Canada decides to pursue an expansionary monetary policy. Which action by the Bank of Canada would be most consistent with this policy? 4. If the money GDP is S600 billion and, on the average, ench dollar is spent three times per year, then the amount of money demanded for transactions purposes: will be $1800 billion. buying government securities will be 5600 billion...
Multiple Choice: 1) Assume the MPC is 0.75 and lump sum taxes are collected by the government. What is the governm...
Multiple Choice: 1) Assume the MPC is 0.75 and lump sum taxes are collected by the government. What is the government tax multiplier? A)-1.33 B) - 25 C) - 75 D) -4 E) -3 , which the recessionary gap. 2) During a Recession, the MPC tends to a) Increase, increases b) Decrease, decreases c Decrease, increases d) Increase, decreases 3) Suppose that the MPC is.75 and the US Federal Government reduces taxes by 10 million dollars. After 3 rounds of...
1. Suppose the federal government observes an increase in gross investment. Examine this event in terms of the aggregate...
1. Suppose the federal government observes an increase in gross investment. Examine this event in terms of the aggregate demand and aggregate supply model. a. The increase in gross investment will cause (Click to select) [an increase in aggregate demand / a decrease in short-run aggregate supply / an increase in short-run aggregate supply / a decrease in aggregate demand]. b. This will lead to (Click to select) [a decrease / an increase] in the price level and (Click to select)...
Suppose that the Fed is concerned about unemployment being too high as the economy is producing...
Suppose that the Fed is concerned about unemployment being too high as the economy is producing below potential levels, so the Fed buys bonds. Shift the aggregate demand (AD) curve on the graph below to show the impact of the Fed's actions on the economy.
IS-LM What combination of policies would best reduce inflation? a) Increase taxes, sell government bonds b) Decrease taxes, buy government bonds c) Decrease taxes, lower the reserve ratio d) Decrease government spending, lower the discount rate e) Increase government spending, raise the discount rate Use the IS-LM model. Your policy instruments are: Taxes, Government Spending, and the Money Supply. Describe a policy or set of policies that achieve the following objectives. Your answer should include a diagram to show how...
und unemployment benefits axes should not be increased since that will lower spendin The unemployment rate is 4.8 percent. Print Which of the following represents a normative economic statement? The unemployment rate is higher than it was last year. O The government will have a larger deficit if unemployment O The government ought to lower taxes so people have more money. ○ Higher taxes will lower spending. benefits are ext 12,828
1. The economy is experiencing high unemployment and a low rate of economic growth and the Bank of Canada decides to pursue an expansionary monetary policy. Which action by the Bank of Canada would be most consistent with this policy? 4. If the money GDP is S600 billion and, on the average, ench dollar is spent three times per year, then the amount of money demanded for transactions purposes: will be $1800 billion. buying government securities will be 5600 billion...
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