Business, 19.12.2019 02:31 genyjoannerubiera
Suppose that real gdp is currently $ 13.8 trillion and potential real gdp is $ 14.0 trillion, or a gap of $ 200 billion. the government purchases, multiplier is 5.0, and the tax multiplier is 4.0
holding other factors constant, by how much will government purchases need to be increased to bring the economy to equilibrium at potential gdp?
1.government spending will need to be increased by $ billion (enter your response rounded to the nearest whole number).
2. holding other factors constant, by how much will taxes have to be cut to bring the economy to equilibrium at potential gdp?
taxes will need to be cut by $ billion (enter your response rounded to the nearest whole number).
Answers: 3
Another question on Business
Business, 21.06.2019 20:20
Miller mfg. is analyzing a proposed project. the company expects to sell 8,000 units, plus or minus 2 percent. the expected variable cost per unit is $11 and the expected fixed costs are $287,000. the fixed and variable cost estimates are considered accurate within a plus or minus 5 percent range. the depreciation expense is $68,000. the tax rate is 32 percent. the sales price is estimated at $64 a unit, plus or minus 3 percent. what is the earnings before interest and taxes under the base case scenario?
Answers: 1
Business, 21.06.2019 21:50
Franklin painting company is considering whether to purchase a new spray paint machine that costs $4,800. the machine is expected to save labor, increasing net income by $720 per year. the effective life of the machine is 15 years according to the manufacturer’s estimate. required determine the unadjusted rate of return based on the average cost of the investment.
Answers: 2
Business, 22.06.2019 07:30
When selecting a savings account, you should look at the following factors except annual percentage yield (apy) fees minimum balance interest thresholds taxes paid on the interest variable interest rates
Answers: 1
You know the right answer?
Suppose that real gdp is currently $ 13.8 trillion and potential real gdp is $ 14.0 trillion, or a g...
Questions
Mathematics, 30.07.2021 03:30
