fiscal stimulas, Macroeconomics

Suppose the consumption function is C = $500 billion + 0.55Y and the government wants to stimulate the economy. By how much will aggregate demand at current prices shift initially (before multiplier effects) with

Instructions: Round your answers to 1 decimal place.

a) A $90 billion increase in government purchases?

$ billion

b) A $90 billion tax cut?

$ billion

c) A $90 billion increase in income transfers?

$ billion

What will the cumulative AD shift be for

d) The increased G?

$ billion


e) The tax cut?

$ billion

f) The increased transfers?

$ billion
Posted Date: 11/4/2012 12:02:06 PM | Location : United States







Related Discussions:- fiscal stimulas, Assignment Help, Ask Question on fiscal stimulas, Get Answer, Expert's Help, fiscal stimulas Discussions

Write discussion on fiscal stimulas
Your posts are moderated
Related Questions
what are its effects on the Indian economy? Ans) It is largely positive. Globalization has brought a lot of jobs and large sums of investment to India. India's economy has been

Q. How commercial banks create money? Commercial banks clearly can't influence the amount of currency in economy or monetary base because they aren't allowed to print money. Th

Q. Explain Reversed Say's Law? In the cross model, supply should instead follow demand. Cross model not only rejects Say's Law, it turns it entirely upside down. In the cross m

what wil hapen to the real wage if the nominal wages and prices rise at the same rate per year?

Ask question #MinDerive the isoprofit function ?imum 100 words accepted#

Money Supply and Monetary Policy   All modern societies use money as the medium of exchange. Since money can be exchanged for goods and services it also becomes a financial asse

Question: Table below shows the recent trends in terms of consumption. (a) (i) Explain what is meant by the term ‘marginal propensity to consume' (MPC) and the ‘averag

1. In December 1979 it was possible to buy a January 1980 contract in gold at the New York Commodity Exchange for $487.50 per ounce and sell an October 1981 contract for $614.80 on

Explain the adjustment to the new equilibrium price from an increase in demand.

I want to know price and estimate time on this assignment.