Reference no: EM1373737
1. In a certain year the aggregate value demanded at the existing price level consists of $100 billion of use, $40 billion of investment, $10 billion of net exports, and $20 billion of government buy. Full-employment GDP is $120 billion. To get price level stability under these conditions the government should:
increase tax rates and reduce government spending.
discourage personal saving by reducing the interest rate on government bonds.
increase government expenditures.
encourage private investment by reducing corporate income taxes.
2. We can expect the IS-curve to get steeper, as:
money demand becomes less sensitive to changes in the interest rate
the marginal propensity to save increases
investment becomes more sensitive to changes in the interest rate
the income tax rate decreases
the expenditure multiplier increases
3. If the government increases taxes, which of the following is LEAST likely to occur?
a decrease in private domestic saving
a decrease in consumption
an increase in private domestic investment
a decrease in net exports
a decrease in national income
|
Fundamentals of public health law
: Do you stop your car at the stop sign or just drive through it without stopping and please state your justification and reasoning.
|
|
Short and long run objectives of using deficit spending
: Suppose that the United States is in the midst of a recession and a new president has just inherited an already large public debt.
|
|
Compute marginal physical product of labor schedule
: Use the following information for a company's output at various levels of employment (L) to compute:
|
|
Making as-ad diagram
: Explain why would you expect inflation rate to accelerate if actual unemployment rate declined to a level lower than the "full employment" unemployment rate & remained at that low level for a year or longer and creaste and AS/AD diagram
|
|
Price stability and economic effects of taxation
: In a certain year the aggregate value demanded at the existing price level consists of $100 billion of use, $40 billion of investment, $10 billion of net exports, and $20 billion of government buy.
|
|
Determine best targets for the fed
: The Federal Reserve System [Fed] has a huge measure of political independence. The Board of Governors, appointed through the United States president and confirms by the United States Senate, serve fourteen year terms.
|
|
Discussion on externalities
: Assume the United States government determines that the cigarette smoking creates social expenses not reflected in current price of cigarettes in the market.
|
|
Effective performance evaluation program
: The focus of the text is development of "3-criteria," successful organizations have in their human resource organization plans: the project of decision rights; an appropriate incentive and rewards system;
|
|
What do you tell her about the income tax consequences
: What do you tell her about the income tax consequences and are there ways to change the basic structure so that it is more advantageous from an income tax point of view?
|