User Account

All Pages

How large a tax cut would be needed to achieve this same

Assignment Help Microeconomics
Reference no: EM13337812

Assume that a hypothetical economy with an MPC of .7 is experiencing severe recession. By how much would government spending have to increase to shift the aggregate demand curve rightward by $30 billion?

How large a tax cut would be needed to achieve this same increase in aggregate demand?

Reference no: EM13337812

Questions Cloud

How would a downward change in the money supply affect : How would a downward change in the money supply affect someone personally? How would it effect a person's career? What impact would rational expectations have on a person's decisons in this situation?
What would japan output per capita have been at the end : At the end of 1973 Japan had a per capita real output of $14,379. If, on average, Japan’s real per capita output grew at a rate of 3 percent per year between 1973 and 1993. What would Japan’s output per capita have been at the end of 1993?
How long would it take for the price level to double if : If the CPI was 110 last year and is 121 this year, what is this year's rate of inflation? What is the "rule of 70"? How long would it take for the price level to double if inflation persisted at (a) 2, (b) 5, and (c) 10 percent per year?
How would a substantial appreciation in the european euro : How would a substantial appreciation in the European euro in the foreign exchange market affect the quantity of imports of European products by the U.S.? How would such an appreciation of the European euro affect travel by Americans to Europe?
How large a tax cut would be needed to achieve this same : Assume that a hypothetical economy with an MPC of .7 is experiencing severe recession. By how much would government spending have to increase to shift the aggregate demand curve rightward by $30 billion?
How would you describe this situation and what would you : If the current price of the product is $150, what is the quantity supplied and the quantity demanded? How would you describe this situation and what would you expect to happen in this Market?
What is the point price elasticity of demand at this price : Suppose that the demand for gasoline is given as P = 3.6-0.002Q where P is the price of gasoline in $ per litre and Q is liters of gasoline per day. If you know that current price of gasoline is $1.3,
Does the production function exhibits increasing returns to : Suppose the production function is C = L(0.5) x M(0.75), does the production function exhibits increasing returns to scale, decreasing returns to scale or constant returns to scale? Explain your answer.
Net taxes affect consumption via disposable income : Net taxes affect consumption via disposable income. Do you think that net taxes could affect any of the other components of aggregate expenditures? If yes, explain how.

Reviews

Write a Review

Microeconomics Questions & Answers

  Prevent bank reserves from falling

Suppose if the public's demand for United States currency increased by $100 Million what action in the "open market" would the Fed have to take to prevent bank reserves from falling?

  What happens to output - income

Based on Problem 1, assume that G=0 in all periods but in period 1, taxes decline by 15. What happens to output/income(Y)

  Information of oligopoly pricing

Mr. Smith is president of a firm that is the industry price leader; that is, it sets the price and other firms sell all they want at that price. The other firms act as perfect competitors.

  Define aggregate production function with typical shape

Draw an aggregate production function with typical shape and label it "F". Make sure to label the axis of the graph. Now, add two more production functions based on the following scenarios.Efficient institutions are adopted in a country. Label this..

  The earnings of engineers doctors and lawyers are high

The earnings of engineers, doctors, and lawyers are high because lots of education is necessary to practice in these fields

  Reach the target rates for inflation and unemployment

What does the Federal Reserve say about the current state of the economy?

  Will you move upward or downward along the demand curve

The demand curver for your firms product is linear.Based on recent sales data you have determined that at the current price the price elasticty of demand is .80. A. Is the current price on the upper or lower portion of the demand curve

  How does the fed have goal independence

How does the federal reserve have a high degree of instrument independence? If it has a specific mandate from Congress to achieve "maximum employment and low, stable prices," then how does the Fed have goal independence?

  Us taxpayer money should not be used to bail out major banks

The CEO of bank of America Brian Moynihan recently stated that US taxpayer money should not be used to bail out major banks.

  Why cost structure associated with many kinds of information

Explain why the cost structure associated with many kinds of information goods and services might imply a market supplied by a small number of large firms. (At the same time, one internet business such as grocery home deliveries have continually s..

  Why smoking bans on bars and restaurants

Is there too much or too little smoking? Explain why smoking bans on bars and restaurants do not efficient solve an externality problem.

  Health administration question

Identify the extent of safety issues in Canadian hospital care. Describe strategies that might be put in place to improve safety?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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