Which of the following would have a larger POSITIVE impact on aggregate demand? a. cutting taxes by $100 billion b. incr...
Which of the following would have a larger POSITIVE impact on aggregate demand?
a. cutting taxes by $100 billion
b. increasing government purchases by $100 billion
c. increasing taxes by $100 billion
d. decreasing government purchases by $100 billion
Homework Answers
Answer
Option b
b. increasing government purchases by $100 billion
A tax change has an inverse impact and it is less than government spending change by the amount of change as the balanced budget multiplier is 1.
Cutting tax of $100 billion has $100 billion less impact than an increase in government spending of $100 billion
Add Answer to:
Which of the following would have a larger POSITIVE impact on aggregate demand? a. cutting taxes by $100 billion b. incr...
Ignoring any supply−side effects, suppose the government is considering cutting taxes by $100 billion or increasing...
Ignoring any supply−side effects, suppose the government is considering cutting taxes by $100 billion or increasing government expenditures on goods and services by $100 billion. Then A. the tax cut would increase aggregate demand and the increase in government expenditure would decrease aggregate demand. B. both policies would increase aggregate demand but the increase in government expenditure has a smaller effect. C. both policies would increase aggregate demand by the same amount. D. both policies would increase aggregate demand but...
In the basic aggregate demand and aggregate supply model, which of the following would cause deflation?...
In the basic aggregate demand and aggregate supply model, which of the following would cause deflation? An increase in A. government purchases B. oil prices C. the expected future price level D. income taxes
Explain the change in aggregate demand when 1)Taxes are increased by $100 Billion 2. (7 pts)...
Explain the change in aggregate demand when
1)Taxes are increased by $100 Billion
2. (7 pts) Both 1 and 2 occur simultaneously (please try to do
it ASAP)
that was what the instructor privided
Problem 4 "Monetary Policy" (20 points) Explain the change in aggregate demand when: 1. (6 pts) Government expenditure on goods and services increases by $100 Billion 2. (7 pts) Taxes are increased by $100 Billion 3. (7 pts) Both 1 and 2 occur simultaneously
Which of the following would shift the aggregate demand curve to the left?
Which of the following would shift the aggregate demand curve to the left? Increase in government purchases, money supply or gross private investment Decreases in government purchases, decreases in money supply, increases in taxes Increases in taxes, increases in government purchases, decreases in money supply Decreases in taxes, government purchases or money supply
An increase in the price level will A) shift the aggregate demand curve to the left.
7) An increase in the price level will A) shift the aggregate demand curve to the left. B) shift the aggregate demand curve to the right. C) move the economy up along the aggregate demand curve. D) move the economy down along the aggregate demand curve. 8) Expansionary monetary policy involves A) reducing money supply and lowering taxes B) increasing money supply to decrease interest rate C) increasing government spending and cutting money supply D) increasing the interest rate and increasing taxes 9) Long-run macroeconomic equilibrium occurs when A) aggregate demand...
If government purchases increased by $200 billion and net taxes decreased by $200 billion, in the...
If government purchases increased by $200 billion and net taxes decreased by $200 billion, in the Keynesian model, ignoring any crowding out effects, aggregate demand would: a)Increase by $200 billion if MPC was 0.5 b) Increase by $600 billion if MPC was 0.5 c)Increase by $200 billion regardless of MPC d)Decrease by $200 billion regardless of MPC e)Do none of the above
13. The aggregate demand curve would shift to the left if 13. A. government spending were...
13. The aggregate demand curve would shift to the left if 13. A. government spending were increased. B. the money supply were increased. C. the cost of energy were to decrease. D. net taxes were increased. All Numbers are in S Billiion Consmption Planned Investment Government Output Net Spending Income) Taxes (C 100+0.9-Y) Savings Purchases Spending 2,400 100 2,800 100 3,000 100 3,200 100 3,400 100 3,600 100 3,800 100 2,170 2,530 2,710 2,890 3,070 3,250 3,300 150 170 190...
The graph below depicts an economy where a decline in aggregate demand has caused a recession....
The graph below depicts an economy where a decline in aggregate demand has caused a recession. Assume the government decides to conduct fiscal policy by increasing government purchases to reduce the burden of this recession. Fiscal Policy LRAS Price Level 100 200 300 400 500 600 700 800 900 Real GDP (billions of dollars) Instructions: Enter your answers as a whole number. a. How much does aggregate demand need to increase to restore the economy to its long-run equilibrium? O...
decrease in personal taxes from $100 billion to 580 billion will increase real GDP 11. If...
decrease in personal taxes from $100 billion to 580 billion will increase real GDP 11. If the MPC -0.75, a decrease in person by A) $20 billion. B) $40 billion. C) $60 billion. D) $80 billion. Table 10.1 Consumption C - $1.0+ 0.80YD Investment $1.5 Government purchases $2.2 Net exports Taxes Government transfer payments $0 (all values are in billions of dollars) 2, 12. Refer to Table 10.1. Equilibrium real GDP for this economy is equal to A) $5.75 billion....
The graph below depicts an economy where a decline in aggregate demand has caused a recession....
The graph below depicts an economy where a decline in aggregate demand has caused a recession. Assume the government decides to conduct fiscal policy by increasing government purchases to reduce the burden of this recession. Fiscal Policy 180 LRAS AS 160 140 120 100 Price Level 80 60 40 AD 20 AD 0 100 200 300 400 500 600 700 800 900 Real GDP (billions of dollars) Instructions: Enter your answers as a whole number. a. How much does aggregate...
Explain the change in aggregate demand when
1)Taxes are increased by $100 Billion
2. (7 pts) Both 1 and 2 occur simultaneously (please try to do
it ASAP)
that was what the instructor privided
Problem 4 "Monetary Policy" (20 points) Explain the change in aggregate demand when: 1. (6 pts) Government expenditure on goods and services increases by $100 Billion 2. (7 pts) Taxes are increased by $100 Billion 3. (7 pts) Both 1 and 2 occur simultaneously
13. The aggregate demand curve would shift to the left if 13. A. government spending were increased. B. the money supply were increased. C. the cost of energy were to decrease. D. net taxes were increased. All Numbers are in S Billiion Consmption Planned Investment Government Output Net Spending Income) Taxes (C 100+0.9-Y) Savings Purchases Spending 2,400 100 2,800 100 3,000 100 3,200 100 3,400 100 3,600 100 3,800 100 2,170 2,530 2,710 2,890 3,070 3,250 3,300 150 170 190...
The graph below depicts an economy where a decline in aggregate demand has caused a recession. Assume the government decides to conduct fiscal policy by increasing government purchases to reduce the burden of this recession. Fiscal Policy LRAS Price Level 100 200 300 400 500 600 700 800 900 Real GDP (billions of dollars) Instructions: Enter your answers as a whole number. a. How much does aggregate demand need to increase to restore the economy to its long-run equilibrium? O...
decrease in personal taxes from $100 billion to 580 billion will increase real GDP 11. If the MPC -0.75, a decrease in person by A) $20 billion. B) $40 billion. C) $60 billion. D) $80 billion. Table 10.1 Consumption C - $1.0+ 0.80YD Investment $1.5 Government purchases $2.2 Net exports Taxes Government transfer payments $0 (all values are in billions of dollars) 2, 12. Refer to Table 10.1. Equilibrium real GDP for this economy is equal to A) $5.75 billion....
The graph below depicts an economy where a decline in aggregate demand has caused a recession. Assume the government decides to conduct fiscal policy by increasing government purchases to reduce the burden of this recession. Fiscal Policy 180 LRAS AS 160 140 120 100 Price Level 80 60 40 AD 20 AD 0 100 200 300 400 500 600 700 800 900 Real GDP (billions of dollars) Instructions: Enter your answers as a whole number. a. How much does aggregate...
Most questions answered within 3 hours.
-
draw a diagram illustrating the three ways of genetic
information flow
asked 3 minutes ago -
CASE 3-1 YOU CAN’T GET THERE FROM HERE: UBER SLOW ON
DIVERSITY
Established in 2009, Uber...
asked 2 minutes ago -
A local AM radio station broadcasts at an energy of
4.39×10-31 kJ/photon.
Calculate the frequency at...
asked 26 minutes ago -
Smithson Cutting is opening a new line of scissors for
supermarket distribution. It estimates its fixed...
asked 31 minutes ago -
A student working in a genetics lab was given the task of
studying a new Drosophila...
asked 32 minutes ago -
Object A is moving due east, while object B is moving due north.
They collide and...
asked 34 minutes ago -
Use the de Broglie relationship (l = h/mu where u is speed) to
determine the wavelengths...
asked 49 minutes ago -
An elliptical hair that is 80µ by 120µ in minor and
major diameters that is 10...
asked 50 minutes ago -
I need the SWOT analysis the Tenets of Warren Buffet for the
company "Goldman Sachs".
asked 50 minutes ago -
What is the state of relations between the Soviet Union and the
West between 1965 and...
asked 56 minutes ago -
regarding business managment-
1. define social identity theory / clearly state the
theory.
2. briefly mention...
asked 59 minutes ago -
Develop the pseudocode and the flowchart for a program that
finds the sum of 5 numbers.
asked 1 hour ago