Homework Answers
"E"
Reducing the income taxes will increase the aggregate demand in the market as the disposable income will increase as the taxes fall. the answer is "E".
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INCIPLES || (MACRO y Courses dh This course Student Resources Respa One way that the government...
Macro Qu ×() TurboTax® Tax Preparat? : Topic: Motivation, comm x b4f3f9c7fad71 61487dc413a81 b59e7524/Downloads/Macro%20Quiz%202.pdf D) running...
Macro Qu ×() TurboTax® Tax Preparat? : Topic: Motivation, comm x b4f3f9c7fad71 61487dc413a81 b59e7524/Downloads/Macro%20Quiz%202.pdf D) running high deficits and raising consumer prices 29) When private expenditures spending, this is known as decrease as a result of increased government 29) A) the crowding out effect. B) government deficit spending. C) the stabilizer effect. D) the multiplier effect. 30) If other factors are held constant, what happens when the federal 30) government finances a growing budget deficit by increasing the amount it...
(6) Imagine that the economy is in a recession. Which one of the following tactics is...
(6) Imagine that the economy is in a recession. Which one of the following tactics is a way to increase output by shifting aggregate demand outward? Raising taxes to increase the government surplus Increasing government spending Increasing the required reserve ratio Imposing tariffs on foreign goods (7) In the short run, supply shocks cause prices to __________ and the quantity demanded to __________. increase; increase increase; decrease decrease; increase decrease; decrease (8) Good deflation...
(1) Which of the following is not a tool of fiscal policy? Government spending Taxes Tax...
(1) Which of the following is not a tool of fiscal policy? Government spending Taxes Tax incentives Private investment (2) Which of the following statements helps to explain why the economy can be slow to recover from a recession? Workers are less motivated because of reduced expectations, which reduces total output. There is not as much money in circulation to fuel new investment. Wages do not fall quickly, which delays an adjustment to a higher output level....
One part of fiscal policy consists of changing government spending, G. Government spending is part of...
One part of fiscal policy consists of changing government spending, G. Government spending is part of aggregate expenditures since AE = C + I + G + X. What will happen to aggregate demand (AD), which is the relationship between AE and the price level, if government spending rises at any price level? Select one: o a. AD will shift down. O b. AD will shift to the left. O C. AD will shift to the right. O d. AD...
THERE ARE 20 total QUESTIONS PLEASE ANSWER ALL OF THEM QUESTION 1 One way to reduce the recessio...
THERE ARE 20 total QUESTIONS PLEASE ANSWER ALL OF THEM
QUESTION 1 One way to reduce the recessionary gap through fiscal policy is to O increase government purchases. increase taxes. O decrease transfer payments. decrease the MPC QUESTION 2 Which of the following is true of open-market operations? It involves the purchase and sale of government securities by the central bank. O it involves the purchase and sale of stocks and bonds by private banks. It involves measures taken by...
1. (26 marks total) Math Review: Recall the IS-L.M model from your intermediate macro course In...
1. (26 marks total) Math Review: Recall the IS-L.M model from your intermediate macro course In particular, the goods-market equilibrium condition was Y-C(Y-T)+I (r) +G, and the money-market ecluilibrunn condition was m = L (r, Y). Here, the exogenous variables are G government spending), T (taxes), and m (real money supply). The endogenous variables are Y (output, or income) and r (real interest rate). C() is the consumption function, which is increasing in disposable income Y-T, bit less than one-for-one...
In an economy where the money supply and aggregate demand have been decreased by the Central...
In an economy where the money supply and aggregate demand have been decreased by the Central Bank, you know that the Central Bank is using 答案选项组 a contractionary monetary policy. an expansionary monetary policy. a loose monetary policy. follow expansionary fiscal policy How does monetary policy affect the market? 答案选项组 Monetary policy has a more of an impact on consumption than investment. Monetary policy has a more of an impact on government spending than investment. Monetary policy has an indirect...
QUESTION 38 2.5 38. Which of the following describes the way in which the self-correcting mechanism...
QUESTION 38 2.5 38. Which of the following describes the way in which the self-correcting mechanism of the economy resolves the problem of a recessionary gap? a) The recessionary gap is cured by an increase in government purchases of goods and services, which implies a shift to the right of the AD curve until full employment equilibrium is reestablished. b) The unemployment associated with a recessionary gap causes wages to fall, increasing Aggregate Supply and thus shifting the AS curve...
Part 1: Background knowledge: what is the role and objectives of the RBA (reserve bank of...
Part 1: Background knowledge: what is the role and objectives of the RBA (reserve bank of Australia) ? Using a graph created in a package like Excel, show how the cash rate has changed over time starting from 1990. Part 2: What are the current domestic conditions you think are relevant for deciding what to do to the cash rate? Part 3: What are the current external (foreign) conditions you think are relevant for deciding what to do to the...
Question 7 Suppose the legislature of Youngland voted to impose a protective tariff on microprocessor chips....
Question 7 Suppose the legislature of Youngland voted to impose a protective tariff on microprocessor chips. Which of the following would be true in the short run? There will be a decrease in microprocessor chip production in Youngland. There will be a decrease in supply of microprocessor chips in Youngland. There will be an increase in microprocessor chip production by foreign nations. I only. II only. III only. I and III only. II and III only. Question 13(Multiple Choice Worth...
Macro Qu ×() TurboTax® Tax Preparat? : Topic: Motivation, comm x b4f3f9c7fad71 61487dc413a81 b59e7524/Downloads/Macro%20Quiz%202.pdf D) running high deficits and raising consumer prices 29) When private expenditures spending, this is known as decrease as a result of increased government 29) A) the crowding out effect. B) government deficit spending. C) the stabilizer effect. D) the multiplier effect. 30) If other factors are held constant, what happens when the federal 30) government finances a growing budget deficit by increasing the amount it...
One part of fiscal policy consists of changing government spending, G. Government spending is part of aggregate expenditures since AE = C + I + G + X. What will happen to aggregate demand (AD), which is the relationship between AE and the price level, if government spending rises at any price level? Select one: o a. AD will shift down. O b. AD will shift to the left. O C. AD will shift to the right. O d. AD...
THERE ARE 20 total QUESTIONS PLEASE ANSWER ALL OF THEM
QUESTION 1 One way to reduce the recessionary gap through fiscal policy is to O increase government purchases. increase taxes. O decrease transfer payments. decrease the MPC QUESTION 2 Which of the following is true of open-market operations? It involves the purchase and sale of government securities by the central bank. O it involves the purchase and sale of stocks and bonds by private banks. It involves measures taken by...
1. (26 marks total) Math Review: Recall the IS-L.M model from your intermediate macro course In particular, the goods-market equilibrium condition was Y-C(Y-T)+I (r) +G, and the money-market ecluilibrunn condition was m = L (r, Y). Here, the exogenous variables are G government spending), T (taxes), and m (real money supply). The endogenous variables are Y (output, or income) and r (real interest rate). C() is the consumption function, which is increasing in disposable income Y-T, bit less than one-for-one...
QUESTION 38 2.5 38. Which of the following describes the way in which the self-correcting mechanism of the economy resolves the problem of a recessionary gap? a) The recessionary gap is cured by an increase in government purchases of goods and services, which implies a shift to the right of the AD curve until full employment equilibrium is reestablished. b) The unemployment associated with a recessionary gap causes wages to fall, increasing Aggregate Supply and thus shifting the AS curve...
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