Any change in the economys total expenses would be expected

Reference no: EM13460892

a. Suppose your local congress representative suggests that the federal government intervene in the gasoline market to stop runaway price increases. Would you say that this view basically supports the Keynesian or the Monetarist school of thought? WHY? What position would the opposing school of thought take on this issue? (Be brief -- you can answer this in 2 or 3 brief paragraphs)

b. Any change in the economy's total expenditures would be expected to translate into a change in GDP that was larger than the initial change in spending. This phenomenon is known as the multiplier effect. Explain how the multiplier effect works.

c. You are told that 90 cents out of every extra dollar pumped into the economy goes toward consumption (as opposed to saving). Estimate the GDP impact of a positive change in government spending that equals $20 Billion.

Reference no: EM13460892

Questions Cloud

Aaliyah makes a decision to take the amphetamine to stay : aaliyah continues to struggle with balancing her work hours and her schoolwork. she has been drinking coffee to help

Futurist world ltd is a leading australian software company : futurist world ltd is a leading australian software company based in melbourne. it has long been coveting the huge

Describe at least three different ways you can inspire : the ninth seminar continues on sharing ways to integrate creativity across the curriculum in your own career. you

What effect will the current governmental initiatives that : what effect will the current governmental initiatives that focus on expanding health care coverage to more americans

Any change in the economys total expenses would be expected : a. suppose your local congress representative suggests that the federal government intervene in the gasoline market to

Determine the magnitude and direction of the force that : 1. a charge of 3.5 microc is placed on the x axis at x 0.55 m while a charge of -15 microc is placed at the

Define group communication in three to five sentences how : define group communication in three to five sentences. how does group communication differ from individual

Create a list of definitions for the following terms and : create a list of definitions for the following terms and identify their roles in finance.bull financebull efficient

In a hydraulic system comprised of a reservoir and a pump : in a hydraulic system comprised of a reservoir and a pump which is 4 ft above the oil level what would be the pressure

User Account

All Pages