Homework Answers
Budget surpluses can contribute to long-run economic growth because they help in infrastructure growth and also leads in capital formation . The increased surplus helps the government spend on needed public projects which essentially lead to higher efficiency for the economy.
Norway is often referred as an example of an economy which does not spend all at once, and thereby the government is able to invest the surplus money in the needed infrastructure projects which helps in investing for the future.
When growth is strong, it makes sense to improve the nation's finances and reduce debt as a % of GDP.
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q13
QUESTION 13 Budget surpluses can contribute to long-run economic growth because they O force the...
5. Government Spending and Long Run Economic Performance Consider the following variant of the basic growth...
5. Government Spending and Long Run Economic Performance Consider the following variant of the basic growth model: We will include a government that consumes output (G) and pays for it by imposing lump sum taxes (T). The government balances its budget every period. With these modifications the model becomes: Y = A-. K.N.- N =1 Y = C, +1, +G I, =s.(Y, -T) T, = G, K,+1=K,:(1-5)+1, Suppose government spending is proportional to output. As the country grows, the government...
Sustained economic growth can be achieved with growth rate over 8% to rapidly boost an economy....
Sustained economic growth can be achieved with growth rate over 8% to rapidly boost an economy. has not been achieved by most countries in the 20th century. is key because over a long period of time small yearly growth rate compound China had special economic zones originally in places such as Hong Kong and Shenzhen set up back in the 1980s. Why would the Chinese government support these areas with different rules like no tax on trade or different economic...
A weakness of the neoclassical economic view is that it: can overlook the long-term causes of...
A weakness of the neoclassical economic view is that it: can overlook the long-term causes of economic growth like the existing natural rate of unemployment even when the economy is at potential GDP. focuses on the long-term factors for economic growth and not the short-term causes of economic growth such as why unemployment fluctuates up and down over a few years. can overlook the efficiency of the market economy in self-correcting in the long-run. Keynes' Law says that demand creates...
Question 3 A higher saving rate will lead to increased economic growth because: it coincides with...
Question 3 A higher saving rate will lead to increased economic growth because: it coincides with greater labour productivity. it means households are earning enough to consume high quality goods and services which give them a high standard of living. domestic saving will be used by the government for transfer payments. domestic saving is needed to fund domestic investment in new capital. domestic saving is used for future consumption.
An individual income tax is a tax on: Select the correct answer below: o the profits...
An individual income tax is a tax on: Select the correct answer below: o the profits of a corporation O an individual's annual income O an individual's purchases at major retailers o the wages an individual receives from an employer When the budget deficit rises... Select the correct answer below: O domestic private investment falls O government spending falls O the trade deficit falls O private savings fall Which of the following will lead to expansionary fiscal policy? Select all...
ce Level Long Run Aegregate Supply 110 LRAS 1 105 100 95 13 5 14.5 15.5...
ce Level Long Run Aegregate Supply 110 LRAS 1 105 100 95 13 5 14.5 15.5 165 Real GDP or Output amlbon of 2009 dollars Refer to the economic model pictured above: Decrease in price levels from 105 to 100 will cause Real GDP to O remain constant in the long run increase to 16.5 trillion in the long run O decrease to 13.5 trillion in the long run O increase to 15.5 trillion in the long run Price Level...
Link w DOC d. 16. nase 29. According to the Solow-Swan theory of long-run economic growth,...
Link w DOC d. 16. nase 29. According to the Solow-Swan theory of long-run economic growth, higher rates of saving for, equivalently, investment) lead to a higher income per person and higher consumption per person b. higher income per person and lower consumption per person c. higher income per person but not necessarily higher consumption per person d. higher consumption per person if the saving rate rises from an already high level and lower consumption per person if the saving...
SECTION A (50) Read the case study below and answer the questions. SHORT RUN STABILIZATION AND...
SECTION A (50) Read the case study below and answer the questions. SHORT RUN STABILIZATION AND LONG RUN COMPETITIVENESS: THE LAVITAN CASE Growth of a young country Latvia – a small, young country on the east coast of the Baltic Sea – has recently earned the title of a ‘‘tiger’’. After gaining its independence from the Soviet Union in 1991, the country embarked upon a challenging road of transitioning from a planned to a market economy. The first decade proved...
The budget surplus trap — why it may prove elusive By business editor Ian Verrender Posted...
The budget surplus trap — why it may prove elusive By business editor Ian Verrender Posted 23 Sep 2019, 4:25am Josh Frydenberg gestures during a press conference. PHOTO: Treasurer Josh Frydenberg announced an end to a decade of deficits on Thursday. (ABC News: Tamara Penniket) RELATED STORY: Balanced budget means the Government is 'working against' the Reserve Bank's efforts to boost the economyRELATED STORY: Budget comes in $13.8 billion better off than first projectedRELATED STORY: 'How'd you go broke? Slow...
please help with a detailed, fully explained answer for Question 2. thank you Read the case...
please help with a detailed, fully explained answer
for Question 2. thank you
Read the case study below and answer the questions. SHORT RUN STABILIZATION AND LONG RUN COMPETITIVENESS: THE LAVITAN CASE Growth of a young country Latvia - a small, young country on the east coast of the Baltic Sea -has recently earned the title of a "tiger". After gaining its independence from the Soviet Union in 1991, the country embarked upon a challenging road of transitioning from a...
5. Government Spending and Long Run Economic Performance Consider the following variant of the basic growth model: We will include a government that consumes output (G) and pays for it by imposing lump sum taxes (T). The government balances its budget every period. With these modifications the model becomes: Y = A-. K.N.- N =1 Y = C, +1, +G I, =s.(Y, -T) T, = G, K,+1=K,:(1-5)+1, Suppose government spending is proportional to output. As the country grows, the government...
An individual income tax is a tax on: Select the correct answer below: o the profits of a corporation O an individual's annual income O an individual's purchases at major retailers o the wages an individual receives from an employer When the budget deficit rises... Select the correct answer below: O domestic private investment falls O government spending falls O the trade deficit falls O private savings fall Which of the following will lead to expansionary fiscal policy? Select all...
ce Level Long Run Aegregate Supply 110 LRAS 1 105 100 95 13 5 14.5 15.5 165 Real GDP or Output amlbon of 2009 dollars Refer to the economic model pictured above: Decrease in price levels from 105 to 100 will cause Real GDP to O remain constant in the long run increase to 16.5 trillion in the long run O decrease to 13.5 trillion in the long run O increase to 15.5 trillion in the long run Price Level...
Link w DOC d. 16. nase 29. According to the Solow-Swan theory of long-run economic growth, higher rates of saving for, equivalently, investment) lead to a higher income per person and higher consumption per person b. higher income per person and lower consumption per person c. higher income per person but not necessarily higher consumption per person d. higher consumption per person if the saving rate rises from an already high level and lower consumption per person if the saving...
please help with a detailed, fully explained answer
for Question 2. thank you
Read the case study below and answer the questions. SHORT RUN STABILIZATION AND LONG RUN COMPETITIVENESS: THE LAVITAN CASE Growth of a young country Latvia - a small, young country on the east coast of the Baltic Sea -has recently earned the title of a "tiger". After gaining its independence from the Soviet Union in 1991, the country embarked upon a challenging road of transitioning from a...
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