Assuming the increase would be in the horizontal range of

Assignment Help Macroeconomics
Reference no: EM13338319

The economy is in a recession. The government enacts a policy to increase spending by $2 billion. The MPS is .2. What would be the full increase in real GDP from the change in government spending assuming the increase would be in the horizontal range of the aggregate supply curve?

Reference no: EM13338319

Questions Cloud

Assuming that absolute purchasing power parity : Assuming that absolute purchasing power parity holds, what should the U.S./Canadian exchange rate be if the CPI in Canada is 225 and the CPI in the U.S. is 179 and the U.S. interest rate is 6%?
Analyse participative leadership style : Analyse Participative Leadership Style
Can we assume that it is less than 1 and chose : Supose we have two alternatives which have same output that is the same benefits. If we apply incremental B/C ratio the result gives 0. Can we assume that it is less than 1 and chose the lower cost alternative?
You are an economic adviser to a candidate for national : You are an economic adviser to a candidate for national office. She asks you for a summary of the economic consequences of a balanced-budget rule for the federal government and for your recommendation on whether she should support such a rule. How do..
Assuming the increase would be in the horizontal range of : The economy is in a recession. The government enacts a policy to increase spending by $2 billion. The MPS is .2. What would be the full increase in real GDP from the change in government spending assuming the increase would be in the horizontal range..
Suppose that the exchange rate between the russian ruble : Suppose that the exchange rate between the Russian ruble and the U.S. dollar is currently $0.03 to the ruble. The one year forward rate for the ruble is $0.025 dollars to the ruble. If Russian inflation is 20% what is the approximate U.S. inflation r..
State the purpose of these legal prices and assess their : Give one example of a price floor and one example of a price ceiling.State the purpose of these legal prices and assess their impacts on the market.
Students attitudes towards school and college facilities : Students attitudes towards school /college facilities
What would be the effect of a $300 increase in taxes once : Suppose that the economy starts at equilibrium and the mpc = 0.8. What would be the effect of a $300 increase in taxes once all the rounds of the multiplier process are complete?

Reviews

Write a Review

Macroeconomics Questions & Answers

  Which affects karls consumption of beer more

karls preferences over hamburger (h) and beer (b) are described by the utility function U(h,b)=min(2h,3b). his monthly income is M dollars and he only buys these two goods out of his income. denote the price of hamburgers by Ph and beer by Pb.

  Assume that initially equilibrium full employment level

Assume that initially equilibrium was 200 units and that this was also full employment level of income

  What does each side of the equation represent

In a two input – one output production model, what are the profit-maximizing conditions, in a general equation form? What does each side of the equation represent?

  Calculate household income what programs are ignored

How does the US Department of Agriculture calculate the official poverty level What government assistance programs does the Census Bureau consider when calculating household income What programs are ignored

  Explain what is economic growth

Leaders of a small town are tired of looking at a vacant and dilapidated warehouse that sits on a prime piece of real estate. The town finds an investor who purchases the warehouse and promises to renovate the old building and build condominiums.

  Assess facets of economic theory

Given that the economy raise by the banking system and creation of money through lending, if one market is down are we to suppose that these other firms that are facing increased demand will borrow enough to counter balance the amount

  Comparative advantage in technology

Techland and Clothworld are 2-nations with the similar number of employees. In Techland each employee can make 4 units of technology OR 4 units of clothing.

  Explain 2-3 methods currently being used for economy

The World Bank is currently advising newly industrialized countries on how to encourage growth. Using the Internet, library and/or other resources, research and briefly explain 2-3 methods currently being used to encourage economic growth for the ..

  Explain supplemental nutritional assistance program

In your diagram, show that a family that considers food a necessity, given $M/3 in cash would spend less than $M/3 on food. What is the optimal bundle of this type of family if instead of receiving cash it received the SNAP card? g) At bundle H, i..

  How the exchange rate for the dollar would likely change

In the following question briefly describe how the exchange rate for the dollar would likely change in the short-run (ceteris paribus) and state whether the dollar appreciates or depreciate.

  Speculation exchange rate risk and hedging

At the end of 2002, the (1-year) interest rate was 1% in the U.S., and 26% in Argentina. Recall that at the same time, the spot rate for the Argentine currency was Peso 4.00/$.

  Determine the relationship between the mpc and the mps

If consumption increases through $12 billion when real disposable income raise by $15 billion, What is the value of the MPC? Determine the relationship between the MPC and the MPS?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd