Government cutting taxes by amount

Assignment Help Business Economics
Reference no: EM131431801

Assume in economy is in recession with a MPC of 0.75 and there is a GDP gap of $100 billion. How much must government spending increase to eliminate the gap? Instead of increasing government spending by the amount that you calculated what would be the effect of the government cutting taxes by this amount?

Reference no: EM131431801

Questions Cloud

Calculate the chi square test : Based on the 2x2 contingency table posted below calculate the chi square test to see if the result rejects the null hypothesis. You can calculate this long hand or use a standard calculator such as found at this site
Unemployment rate and natural rate of unemployment : Question 1: What is the difference(s), if any, between the unemployment rate and the natural rate of unemployment? Discuss.
Find the names and addresses of employees : Retrieve the names of employees in department 5 who work more than 10 hours per week on the 'ProductX' project and List the names of employees who have a dependent with the same first name as themselves.
Write a brief statement of your findings : Do the Kruskal-Wallis test. Explain the distinction between the hypotheses tested by Kruskal-Wallis and ANOVA.- Write a brief statement of your findings. Include a numerical comparison of the groups as well as your test result.
Government cutting taxes by amount : Assume in economy is in recession with a MPC of 0.75 and there is a GDP gap of $100 billion. How much must government spending increase to eliminate the gap? Instead of increasing government spending by the amount that you calculated what would be..
Is the conflict inevitable between united states and china : Is the conflict inevitable between the United States and China? If a conflict occurs in the future, are there ways to discourage them? Or are these conflicts just part of global politics between great powers?
Find the median number of beetles trapped by boards : Find the median number of beetles trapped by boards of each color. Which colors appear more effective? Use the Kruskal-Wallis test to see if there are significant differences among the colors. What do you conclude?
What does the kick off meeting look like : The readings continue to focus on culture, trust and team structures. The objectives of this lesson are to understand how you can leverage the concepts of the collaborative managerial qualities, skills, strategies and practices needed to develop ..
Complete next year budgeted figures for each entity : You give her information for a for-profit and for a nonprofit entity and ask her to complete the following: Given the assumptions and data in this Excel file: Complete next year's budgeted figures for each entity within the same Excel worksheet

Reviews

Write a Review

Business Economics Questions & Answers

  Low voter turnout is not an indicator of trouble

Which of the following arguments do you support? Why? low voter turnout is not an indicator of trouble, as it signifies satisfaction with the status quo

  Key difference between accountants and economists

A key difference between accountants and economists is their different treatment of the cost of capital. Does this cause an accountant’s estimate of total costs to be higher or lower than an economists estimate? Explain.

  Balance of inventory and the balance of depreciation

Brenda’s Bar and Grill has total assets of $16.0 million, of which $10.0 million are current assets. Cash makes up 10 percent of the current assets and accounts receivable makes up another 40 percent of current assets. What is the balance of inventor..

  Federal reserve will raise interest rates in near future

Why is the stock market affected by predictions that the Federal Reserve will raise interest rates in the near future?

  Illustrate what are characteristics of large firms

Illustrate what are characteristics of large firms conducting both B2B and B2C transactions that require more robust and capable electronic commerce systems.

  Occupational segregation is more likely to explain

Occupational segregation is more likely to explain the:

  Draw his budget line including endpoints

In a two year setting Rod has earnings of $8000 this year and earnings of $25,000 next year. He can borrow or lend at an interest rate of 25%. Draw his budget line including endpoints. What is the slope of the budget line? What is the interpretation ..

  Terms of airfares-other vacation-related expenses changed

Jim spends all his income on apartment rent, food, clothing, and vacations. He gets a pay raise from $3,000 a month to $4,000 a month. At the same time, airfares and other vacation-related expenses increase by 50 percent. How has Jim’s budget in term..

  Define five types of production effects of economic growth

Define the five types of “production effects” of economic growth in a country and the five types of “consumption effects” of the economic growth. Then define the types of possible “overall” or “net” effects of the country’s growth on the relative imp..

  Describe the price elasticity of demand

The price of a product is $5 and the quantity demanded is 250 units/week. When the price is increased to $7 the quantity demanded falls to 125. Calculate the percent change in price and percent change in quantity demanded. Calculate the price elastic..

  Price-consumption curve is horizontal

Maisha spends all her income on good X and good Y. As the price of good X increases while the price of the price of good Y remains fixed, Maisha’s price-consumption curve is horizontal. Let the price of good Y be $1 per unit and Maish’s income be M. ..

  Bonds are currently paying an interest rate

You are in the market for a stock that is currently selling at $20. You intend to sell the stock immediately after you receive a dividend payment of 20 cents per share. Moreover you believe that you can sell the stock at $21 per share. If bonds are c..

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