Homework Answers
5) The correct answer is :- When government borrows money
Explanation:- When government starts borrowing from the available loan market to finance the gap in budget deficits, an upward pressure is exerted on the interest rates causing them to rise which reduces the borrowing from households and businesses. Thus crowding out problem is the fall in private borrowing due to the rise in government borrowing.
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6) The correct answer is :- Injections exceeds leakages
Explanation:- The purchases of goods and services by the government represent injection in circular flow whereas taxes represent leakages. The government incurs a deficit because spending is more than tax revenue.
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Answer for both please!
Question 5 1 pts Using the circular flow, "crowding out" refers to...
(1) Calculate the government spending multiplier if, an increase in government spending by $5 million increases...
(1) Calculate the government spending multiplier if, an increase in government spending by $5 million increases real GDP by $20 million. Group of answer choices 0.20 0.25 2 5 4 (2) A major benefit of automatic stabilizers is that they: Group of answer choices guarantee a balanced budget over the course of the business cycle. have a tendency to reduce the national debt. moderate the effect of fluctuations in the business cycle. require legislative review by Congress before they can...
Answer for both please! Question 7 1 pts Which of the following would potentially cause the...
Answer for both please!
Question 7 1 pts Which of the following would potentially cause the economy to grow slower More government spending More investment More exports More imports Question 8 1 pts Using the circular flow, which of the following would potentially cause the economy to grow faster More government spending More taxes More imports More savings
Question 6 1 pts The table below shows components of GDP taken from the Australian national...
Question 6 1 pts The table below shows components of GDP taken from the Australian national accounts Component of GDP $billions Investment 200 Imports 250 Indirect taxes 50 Consumption 600 Government spending 200 Wages 700 Exports Gross operating surplus 250 Using this information calculate the level of GDP and deduce the amount of exports, in billions of dollars. GDP is $950 and exports is $50; GDP is $1000 and exports is $0; GDP is $900 and exports is $150; GDP...
can you help on answering all of them (answer them correctly) Question 9 1 pts The...
can you help on answering all of them (answer them
correctly)
Question 9 1 pts The vertical, long-run aggregate supply curve indicates that the long-run level of economic output is dependent upon the stock of productive factors the price level government subsidies Question 10 1 pts When does the GDP gap shrink? It shrinks as the economy recovers from recession. It shrinks as the economy is contracting with government intervention. It shrinks as the government reduces the budget deficit through...
Based on the below excerpt from an Economics textbook, please answer the question below the text:...
Based on the below excerpt from an Economics textbook, please answer the question below the text: Over the years, the federal government budget experiences imbalances. A budget deficit occurs when federal expenditures (including both spending on final goods and transfer payments such as social security benefits, welfare, unemployment benefits etc.) exceed tax revenues collected by the federal government for that fiscal (budget) year. A surplus occurs when the government collects more in taxes than it spends. For example, for four...
Question 1 (1 point) An increase in government spending will shift the aggregate demand curve to...
Question 1 (1 point) An increase in government spending will shift the aggregate demand curve to the left. True False Question 2 (1 point) When federal government spending exceeds tax revenues, the federal government runs a budget surplus True False Question 3 (1 point) Taxation and government spending are examples of fiscal policy tools used to stabilize an economy. True False Question 4 (1 point) Gross domestic product calculations count only final goods and services because: a one cannot calculate...
could abyone help me answering these questions please! Incorrect Question 3 0/1.5 pts The aggregate demand...
could
abyone help me answering these questions please!
Incorrect Question 3 0/1.5 pts The aggregate demand of an open economy is given by the after-tax domestic consumption C, the investment (which depends on the interest rater), the government spending G and net exports X - M: AD = C+I+G+X-M=co + c (1 – t) T+I(r) + G + X - my Co is autonomous consumption, c, is the marginal propensity to consume, and m is the marginal propensity to import....
Question 70 2.5 pts In the unemployment rate, part-time workers are: not included in the labor...
Question 70 2.5 pts In the unemployment rate, part-time workers are: not included in the labor force. included in the labor force, but counted as unemployed. treated the same way as discouraged workers. included in the labor force and counted as employed. Question 69 2.5 pts Which of the following would be officially classified as unemployed? O a school administrator who has been working as a substitute teacher one day per week while looking for a full-time job in administration...
Ques Ques Ques Question 21 1.67 pts One claim that trade barrier proponents use to enforce...
Ques Ques Ques Question 21 1.67 pts One claim that trade barrier proponents use to enforce environmental standards is that Time Running Attempt due: Dec 2 Hours, 8 Mir O environmental standards do not reduce industrial competitiveness and do not induce race to-the-bottom, where countries are forced to rescind their standards in order to maintain employment O high standards in industrialized nations motivates some firms to "export pollution to developing countries by relocating their dirty industries. enforcing environmental standards is...
Question 1: According to Milton Friedman, the reason there are two Phillips curves is because a....
Question 1: According to Milton Friedman, the reason there are two Phillips curves is because a. prices are inflexible. b. the expected inflation rate does not instantaneously adjust to changes in the actual inflation rate. c. the expected inflation rate is equal to 1 minus the actual inflation rate. d. the expected inflation rate adjusts to changes in the actual inflation rate. Question 2: Milton Friedman argued that there a, are two Phillips curves, a short-run one and a long-run...
Answer for both please!
Question 7 1 pts Which of the following would potentially cause the economy to grow slower More government spending More investment More exports More imports Question 8 1 pts Using the circular flow, which of the following would potentially cause the economy to grow faster More government spending More taxes More imports More savings
Question 6 1 pts The table below shows components of GDP taken from the Australian national accounts Component of GDP $billions Investment 200 Imports 250 Indirect taxes 50 Consumption 600 Government spending 200 Wages 700 Exports Gross operating surplus 250 Using this information calculate the level of GDP and deduce the amount of exports, in billions of dollars. GDP is $950 and exports is $50; GDP is $1000 and exports is $0; GDP is $900 and exports is $150; GDP...
can you help on answering all of them (answer them
correctly)
Question 9 1 pts The vertical, long-run aggregate supply curve indicates that the long-run level of economic output is dependent upon the stock of productive factors the price level government subsidies Question 10 1 pts When does the GDP gap shrink? It shrinks as the economy recovers from recession. It shrinks as the economy is contracting with government intervention. It shrinks as the government reduces the budget deficit through...
Based on the below excerpt from an Economics textbook, please answer the question below the text: Over the years, the federal government budget experiences imbalances. A budget deficit occurs when federal expenditures (including both spending on final goods and transfer payments such as social security benefits, welfare, unemployment benefits etc.) exceed tax revenues collected by the federal government for that fiscal (budget) year. A surplus occurs when the government collects more in taxes than it spends. For example, for four...
could
abyone help me answering these questions please!
Incorrect Question 3 0/1.5 pts The aggregate demand of an open economy is given by the after-tax domestic consumption C, the investment (which depends on the interest rater), the government spending G and net exports X - M: AD = C+I+G+X-M=co + c (1 – t) T+I(r) + G + X - my Co is autonomous consumption, c, is the marginal propensity to consume, and m is the marginal propensity to import....
Question 70 2.5 pts In the unemployment rate, part-time workers are: not included in the labor force. included in the labor force, but counted as unemployed. treated the same way as discouraged workers. included in the labor force and counted as employed. Question 69 2.5 pts Which of the following would be officially classified as unemployed? O a school administrator who has been working as a substitute teacher one day per week while looking for a full-time job in administration...
Ques Ques Ques Question 21 1.67 pts One claim that trade barrier proponents use to enforce environmental standards is that Time Running Attempt due: Dec 2 Hours, 8 Mir O environmental standards do not reduce industrial competitiveness and do not induce race to-the-bottom, where countries are forced to rescind their standards in order to maintain employment O high standards in industrialized nations motivates some firms to "export pollution to developing countries by relocating their dirty industries. enforcing environmental standards is...
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