Reference no: EM131439025
PRINCIPLES OF MACROECONOMICS MULTIPLIER PROJECT V3
Bayou Sans Espoir, LA, has been experiencing a mini-recession because of the significant decline in crude oil prices and cuts in state subsidies to its crawfish packing plant. As a result of falling oil prices, the oil companies operating in Bayou Sans Espoir have reduced investment spending in the area by $8 mil; Cajun Crawfish, the largest crawfish packing operation, has reduced local investment by $500,000.
a. If the local marginal propensity to consume is 0.75, by how much has decreased investment spending reduced local gross domestic product and income?
b. The State of Louisiana has announced that it will cut 800 families in Bayou San Espoir from the state welfare rolls as part of its overall cuts to its cash assistance program. It is estimated that the total annual reduction in transfer payments to Bayou Sans Espoir residents will amount to $3 mil. By how much will local GDP be reduced by this reduction in transfer payments?
c. Bayou Sans Espoir is experiencing hard times. The local unemployment rate has risen to 5% points above the full employment level after the cuts to investment spending and transfer payments to residents. If local GDP was $506 mil before those changes, by how much, in dollar figures, would local GDP now have to increase to reach the full employment level?
d. The Chinese have discovered crawfish (miniature lobster on menus in China) and have placed new orders with Cajun Crawfish amounting to $6 mil annually. By how much will local GDP increase as a result of the increase in crawfish sales?
e. Unfortunately for Bayou Sans Espoir, the State if Louisiana has cut off all funding to Planned Parenthood Clinics throughout the state of Louisiana. The local clinic, which received $3 mil annually from the state, will close. At the same time, a tax cut pushed through earlier in the year by the former governor, who was running for the Republican presidential nomination, will reduce taxes paid by local residents by $2 mil. How will these changes affect local GDP?
Competition among applicants to land jobs
: The economy is tight, and there is competition among applicants to land jobs. This setting is expected to lead to an increase in the number of applicants who will misrepresent their background and credentials. The hope, of course, is that this bit of..
|
What would be advantages or disadvantages of your decision
: SOCS 315- Why do you want or not want to enter into this type of an agreement? What are your fears? What are your rights? What are your concerns? What would be the advantages or disadvantages of your decision?
|
Forecast the demand for an expensive type of cloth
: Sally, the manager of a clothing company needs to forecast the demand for an expensive type of cloth. Sue collected the demand data for the past eight months in 1000s of yards (see table below). All your answers should be in 1000s of yards as well. N..
|
What problem area would the internet intervention address
: With so many individuals using the Internet today, the psychology of the individual, the family, the community, and the society has changed. Some might argue that the traditional psychological theories cannot be applied and therefore psychology as..
|
By how much will local gdp increase
: EC 251 PRINCIPLES OF MACROECONOMICS MULTIPLIER PROJECT V3. The Chinese have discovered crawfish (miniature lobster on menus in China) and have placed new orders with Cajun Crawfish amounting to $6 mil annually. By how much will local GDP increase a..
|
Research paper on the bhagavad gita
: Explain in their original religious context these concepts (and any others you feel relevant) for your readers, offering an example of the way in which each surfaces within the Gita and influences its primary theme.
|
What did their actions do to the other wall street firms
: What did their actions do to the other Wall Street firms? How did they influence domestic and global financial markets? What effect did they have on the valuations of other securities?
|
Discuss the differences between intoxication and toxicity
: Discuss the differences between intoxication and toxicity. Explain the digestive elimination process of two of the following:Over-the-counter drugs,Dietary supplements,Performance enhancing drugs.
|
Discuss relationship between shelf space of product-sales
: Using these data points, apply simple linear regression, and examine the residual plot. What do you conclude? Construct a scatter chart and use the Excel Trendline feature to identify the best type of curvilinear trendline that maximizes R2.
|