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
Suppose home cost pricing prevails in international trade, while world output is declining. Consider two economies, A and B, both having floating exchange rates and the same moneta

what is automatic stabilizer, example with diagram or graph please

We will look now at changes in the income distribution of Canadians between 1991 and 2001. Use the census data for these years provided in the course web page. Download that data i

Explain the excise terms of tax. The excise terms of tax: a. Tax incidence b. Excess burden c. Deadweight loss d. Tax revenue

The system where workers concentrate on specialized tasks to make a product is referred to as: A. Coincedence of wants B. Roundabout production C.Freedom of enterprise

What can be the topic to make assignment on indian macro economics

How central banks increase the monetary base When the Central Bank cuts the target rate, they must simultaneously increase the monetary base by buying government securities. The

The market demand for a factor   The market demand curve for any input is not simply the horizontal summation of the individual demand curves of all the firms. This is due to th

What are the costs of economic growth? Economic growth can result also into: • Increases within pollution noise and congestion • Unnecessary depletion of non-renewable r

An experiment is explained by an exponential random variable with mean ? and x1 and x2. A proposed test of the hypothesis ?=2 next to the alternative ?=½ uses the critical region {