### Interpretation of reduction in government spending

Assignment Help Macroeconomics
##### Reference no: EM1313551

Suppose Congress wishes to reduce the budget deficit by reducing government spending. Use the IS-LM model to illustrate graphically the impact of the reduction in government spending on output and interest rates. (Be sure to label:

i. the axes;

ii. the curves;

iii. the initial equilibrium values;

iv. the direction the curves shift; and

v. the terminal equilibrium values.)

#### Questions Cloud

 Graphical implications of open market purchase : Graphically illustrate the impact of an open-market purchase by the Federal Reserve on the equilibrium interest rate using the theory of liquidity preference and the market for real money balances. (Be sure to label: Multiple linear regression equation : Below you are given a partial computer output based on a sample of 16 observations. What would happen in the market : Illustrate what would happen in the market, please Specify whether the policy would cost the Chinese government anything also if so, and explain how much. Calculation of net income for the period and eps : Calculation of net income for the period and EPS and What number of shares should be used in computing diluted earnings per share for the year ended dec. 31,2006? Interpretation of reduction in government spending : Suppose Congress wishes to reduce the budget deficit by reducing government spending. Use the IS-LM model to illustrate graphically. The two ships stuck together and sank together : A 48.21 {rm kg} ice skater spins about the vertical axis through her body with her arms horizontally outstretched, making 2.20 turns each second. The distance from one hand to the other is 1.5 {rm m}. Biometric measurements indicate that each hand na.. Disadvantages of using computer software for decision making : Write down the advantages and disadvantages of using computer software for decision making. Who has a mass of 80 kg without the toolkit : To get back to the shuttle, the astronaut unstraps a 10-kg tool kit and throws it away with a speed of 8 m/s. In the script, the astronaut, who has a mass of 80 kg without the toolkit, survives, but is this accurate. Explain decision making on the basis of the irr and npv : Explain decision making on the basis of the IRR and NPV criterion and Compute the net present value for each project if the firm has a 10% cost of capital. Which project should be adopted

### Write a Review

#### Compute marginal failure reduction

Construct a table showing the marginal failure reduction (in units) and the dollar value of these reductions for each inspector hired.

#### Explanation of user cost or scarcity rent

Explain why user cost, or scarcity rent, arises in the intertemporal allocation of a depletable resource such as minerals, and some types of energy and aquifer water resources.

#### Lifetime employment system in japan

Japan has traditionally had an employment system characterized by a "lifetime" employment relationship between employer and employee and salaries that are based on length of service with the employer-starting low

Draw a diagram describing autarky and a pattern of comparative advantage for your example.

#### Tax on aggregate labor supply curve

Use both an individual's indifference curve and budget line, and the aggregate labor supply curve to explain and illustrate your answer.

#### Pricing decision on the basis of elasticity of demand

A tariff I ssimply a tax on imports. Use our model of the excise tax (with  diagram) to expain why domistic firms request that tariff? Consider both the domestic and the foreign country in your answer

#### Mcq on utility maximization and market structure

Joan is deciding where to spend her spring break.  If she goes to Cancun, Mexico, the trip will give her 9,000 utils of satisfaction and will cost her \$300.  If, instead, she travels to Florida, the trip will give her 5,000 utils of pleasure and w..

#### Calculating quantity and equilibrium price

Assume the government imposes a tax of \$2.00 per unit to reduce widget consumption and raise government revenues. What will the equilibrium quantity be?

#### Equilibrium price and output in short run and long run

Find out the average total cost and average variable cost as a function of the level of output. Assuming the firm has the same cost curves in the long-run for q>0 and C (0) =0, how much will it produce in the long-run?

#### Computation of change in work incentive

Suppose in country Triniland employers are required to pay overtime at 50% above the normal wage rate for workers who work beyond 8 hours a day.

#### Difference-absolute and comparative advantage theory

Define and describe the difference between the absolute advantage and the comparative advantage.

#### Analyzing the impact of fiscal policies

Find the velocity given that the market is in equilibrium.  MD1 is the relevant curve and it is given that the real GDP is 30,000.