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1) If the tax multiplier is -1.5 and a $200 billion tax increase is implemented, what is the change in GDP, holding everything else constant? (Assume the price level stays constant.)
2) Suppose real GDP is currently $12.5 trillion and potential real GDP is $13 trillion. If the president and the Congress increased government purchases by $500 billion, what would be the result on the economy?
3) Suppose the federal budget deficit for the year was $100 billion and the economy was in a recession. If the economy had been at potential GDP, it is estimated that tax revenues would have been $60 billion higher and government spending on transfer payments $50 billion lower. Using these estimates, what was the cyclically adjusted budget deficit or surplus for the year?
4) How could the existence of an unemployment insurance system or other transfer programs have reduced the severity of the Great Depression?
When the Smith family lived in Japan they consumed 4 lbs of rice per week and 2 lbs of potatoes per week. When the Smith family lived in Germany their consumption drastically changed to 4 lbs of potatoes per week and 2 lbs of rice per week. Although ..
If due to over-harvesting of coconuts they become more difficult to acquire, taking 2 hours to pick one coconut, Illustrate what combination will maximize utility.
How does a fiscal policy affect the AS-AD curve? Lets say for example have an equilibrium output of 1600 and full employment level of 1200 meaning i have an inflationary gap of 400 so i might want to fix this by applying a fiscal policy that increase..
determine if the firm is operating in the short run or the long run. old york & company, a women's retailer, is not under a wage contract with its employees, but it is currently in a one year lease at its mall location.
Critics of agribusiness allege that industrialized, large-scale food production poses harm to consumer health as well as the environment. Proponents of agribusiness contend that factory farming and other food-production methods are vital in feeding a..
Should chain stores imitate the packaging of leading brands? (Store brands will frequently have the look of a well-known brand). Why or why not
Identify and describe four means of political risk adaptation. Give a cited source for each mean. I know what the four means are of political risk adaptation the problem I'm having is where do I find websites to give examples of these. If someone cou..
An increase in the aggregate demand for goods and services has a larger impact on output ________ and a larger impact on the price level ________.
What are the positive and negative aspects of budget deficits and surpluses? What policy is best for today's economy? Explain your answer.
What are the social and global economic impacts on health care in the present day relating to budgetary cuts from the various levels of government (local, state, and federal)?
An economy needs 400 bn. Spending to close the recessionary gap, multiplier is 4; what should be the increase in spending on the part of the of the government?
q1. a has the u.s. economy experienced inflation or deflation during recent recessions? elucidate.b can the inflation
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