Government spending multiplier
suppose that the marginal propensity to consume is 0.75. assum...
Social Studies, 11.12.2019 09:31 wyattdawes45
Government spending multiplier
suppose that the marginal propensity to consume is 0.75. assume that there are no tax and no import leakages. government proposes a fiscal stimulus of expenditure spending of $600 billion.
(include calculations and formulas)
a) calculate the total change in real gdp in the economy.
b) how much is the induced change in the private sector aggregate spending?
c) explain the spending multiplier process by comparing an increase in unemployment insurance benefit to an increase in educational spending, which policy could achieve a faster effect of increasing the aggregate spending, and why?
d) what are some limitations of discretionary fiscal policy and the spending multiplier?
Answers: 1
Social Studies, 22.06.2019 07:00
How does désir represent the diversity of europe today? how did the 1400s and 1500s affect the religious diversity of europe? how might cultural diversity in a place like germany affect everyday life? what are two reasons some europeans might find immigration to be an advantage? what are two reasons some might find it to be a disadvantage? why do you think languages and culture spread more easily in europe now than in the past?
Answers: 1
Social Studies, 22.06.2019 07:30
According to the chart, the power to tax is a concurrent power, meaning a) it belongs to the state government. b) it is a government power that is shared. c) it is less important than the power to borrow money. eliminate d) it is more important than the regulating state trade.
Answers: 2
Social Studies, 22.06.2019 16:00
China wants to take control over social media in which other region? question 4 options: taiwan chile japan hong kong
Answers: 2
Social Studies, 22.06.2019 20:30
Describe two reasons that cities developed along rivers during the industrial revolution. for full credit, your response must be at least 2 complete sentences.
Answers: 3
Mathematics, 03.09.2019 19:20
History, 03.09.2019 19:20
History, 03.09.2019 19:20
Spanish, 03.09.2019 19:20
Mathematics, 03.09.2019 19:20
Biology, 03.09.2019 19:20
English, 03.09.2019 19:20
Health, 03.09.2019 19:20