If government spending and tax both increase by $1000, how will GDP, Consumption and Investment in...
If government spending and tax both increase by $1000, how will GDP, Consumption and Investment in equilibrium be affected?
Homework Answers
If. Govt. Spending and tax both increase by 1000 than according to the concept of balance budget multiplier GDP , consumption would not get affected. Balance budget multiplier says the tax increase will nullify the effect of increased spending on macro level. Thus it is suggested that tax should increase less than the spending to have some multiple effect of it on the economy as whole and in different sectors.
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If government spending and tax both increase by $1000, how will
GDP, Consumption and Investment in...
The introduction of a tax by the government will: a. affect government spending since the...
The introduction of a tax by the government will: a. affect government spending since the government levies the tax. b. affect consumption through its effect on investment. c. have no effect on real GDP since real GDP comprises consumption expenditure, investment expenditure, and government expenditure. d. increase real GDP since it enables the government to increase spending. e. affect consumption through a change in disposable income.
please answer all The components of GDP are: Select one: O a. Consumption, government spending, net...
please answer all
The components of GDP are: Select one: O a. Consumption, government spending, net exports, and investment. O b. Exports, imports, investment, and disposable income. O c. Consumption, exports, imports, and disposable income. O d. Consumption, inventory, government spending, and disposable income. Question 19 Not yet answered Points out of 1.00 P Flag question The crowding out effect refers to a decrease in: Select one: O a. Consumption or investment as a result of an increase in government...
Where Y is GDP, C is consumption, I is investment, G is government spending, and there...
Where Y is GDP, C is consumption, I is investment, G is government spending, and there is no international trade, national saving equals: A) Y – C – I. B) C + I + G. C) Y – C – G. D) Y + C + G.
1. GDP - annual debt 2. government spending - tax revenue >0 3.government spending - tax...
1. GDP - annual debt
2. government spending - tax revenue >0
3.government spending - tax revenue <0
4. annual debt/GDP
5 annual deficit/GDP
6. total debt - debt held by us households and institutions
==================================================
A budget deficit is government spending in excess of what?
A.. tax revenues
B. real GDP
C. household spending
D. consumption
================================================
What would happen to the cyclical deficit if the GDP growth rate
jumped from 2 percent to 4 percent?
A.decrease in deficit...
$800 000 Wages paid to labour Household consumption spending Government Transfers Investment spending Government spending on...
$800 000 Wages paid to labour Household consumption spending Government Transfers Investment spending Government spending on goods & services Exports Imports Taxes Profits 50 000 250 000 200 000 300 000 250 000 250 000 200 000 If GDP equals $1100000, then consumption spending is equal to $ A Do not include any commas or spaces in your answer.
What is crowding out? O a reduction in consumption and investment spending that results from government...
What is crowding out? O a reduction in consumption and investment spending that results from government borrowing O a reduction in consumption and investment spending that results from increased international trade O a reduction in government borrowing resulting from increases in consumption and investment spending O a reduction in investment, but not consumption, that results from government borrowing O a reduction in consumption, but not investment, that results from government borrowing are a mechanism by which crowding out occurs. OIncreases...
if crowding out occurs, an increase in government spending a) decreases the interest rate and consumption...
if crowding out occurs, an increase in government spending a) decreases the interest rate and consumption and investment spending rise b) decrease the interest rate and consumption and investment spending decline c) increases the interest rate and consumption and investment spending decline d) increase the interest rate and consumption and investment spending rise
Question 1 (1 point) If interest rates increase, how wil his affet planned investment? Planned investment...
Question 1 (1 point) If interest rates increase, how wil his affet planned investment? Planned investment will decrease. Planned investment will not be affected. Planned investment could increase or decrease. Planned investment will increase. Question 2 (1 point) ere to cut back on their consumption expenditures If the economy were to enter a recession and households w what type of industry would be most affected? Industries selling perishable goods. Industries providing services. Industries selling durable goods. Industries selling non-durable goods...
The government of the country intends to increase government spending in order to increase GDP by...
The government of the country intends to increase government spending in order to increase GDP by $950 million from $32.11 billion. If there is a multiplier of 4, calculate the increase in government spending needed to bring about the desired change in GDP.
please show work [c; 4pt] Consider the AE model with consumption, investment, and government spending. Per...
please show work
[c; 4pt] Consider the AE model with consumption, investment, and government spending. Per capita consumption is represented by the function C = 4000 + 0.75(Y-T) and investment is $3000 per capita. How much does the AE model predict GDP will increase with 52,000 per capita of balanced-budget government spending? $1,000 per capita of government deficit spending? Id; 5pt] Banking and T-accounts Suppose a bank starts with $10,000 cash raised from co-owners (so equity also starts at $10,000)....
please answer all
The components of GDP are: Select one: O a. Consumption, government spending, net exports, and investment. O b. Exports, imports, investment, and disposable income. O c. Consumption, exports, imports, and disposable income. O d. Consumption, inventory, government spending, and disposable income. Question 19 Not yet answered Points out of 1.00 P Flag question The crowding out effect refers to a decrease in: Select one: O a. Consumption or investment as a result of an increase in government...
1. GDP - annual debt
2. government spending - tax revenue >0
3.government spending - tax revenue <0
4. annual debt/GDP
5 annual deficit/GDP
6. total debt - debt held by us households and institutions
==================================================
A budget deficit is government spending in excess of what?
A.. tax revenues
B. real GDP
C. household spending
D. consumption
================================================
What would happen to the cyclical deficit if the GDP growth rate
jumped from 2 percent to 4 percent?
A.decrease in deficit...
$800 000 Wages paid to labour Household consumption spending Government Transfers Investment spending Government spending on goods & services Exports Imports Taxes Profits 50 000 250 000 200 000 300 000 250 000 250 000 200 000 If GDP equals $1100000, then consumption spending is equal to $ A Do not include any commas or spaces in your answer.
What is crowding out? O a reduction in consumption and investment spending that results from government borrowing O a reduction in consumption and investment spending that results from increased international trade O a reduction in government borrowing resulting from increases in consumption and investment spending O a reduction in investment, but not consumption, that results from government borrowing O a reduction in consumption, but not investment, that results from government borrowing are a mechanism by which crowding out occurs. OIncreases...
Question 1 (1 point) If interest rates increase, how wil his affet planned investment? Planned investment will decrease. Planned investment will not be affected. Planned investment could increase or decrease. Planned investment will increase. Question 2 (1 point) ere to cut back on their consumption expenditures If the economy were to enter a recession and households w what type of industry would be most affected? Industries selling perishable goods. Industries providing services. Industries selling durable goods. Industries selling non-durable goods...
please show work
[c; 4pt] Consider the AE model with consumption, investment, and government spending. Per capita consumption is represented by the function C = 4000 + 0.75(Y-T) and investment is $3000 per capita. How much does the AE model predict GDP will increase with 52,000 per capita of balanced-budget government spending? $1,000 per capita of government deficit spending? Id; 5pt] Banking and T-accounts Suppose a bank starts with $10,000 cash raised from co-owners (so equity also starts at $10,000)....
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