Automatic stabilizers change the federal budget balance

Assignment Help Business Economics

Reference no: EM13816740

If Automatic stabilizers change the federal budget balance by $70 billion for every 1 percent change in real GDP growth, what will happen to the federal budget balance if the economy falls into a recession of -3 percent from a growth path of +2 percent?

Reference no: EM13816740

Questions Cloud

Manage the chemical stockroom : The stockroom will also be adjusting its weekend hours; so beginning on the first of next month, Saturday orders will only be filled between the hours of 8 a.m. and 12 p.m. The stockroom will be closed Saturday afternoons and Sundays.

How might the cultural differences for better or worse : How might he have fit in 1960s Kansas, and how might the cultural differences, for better or worse, affected his ability "to get the story"?

What about their procedures rules and policies : Pick up one organizations that you interact with frequently; as an employee or a customer (one bad example e) and assess their culture by looking at the following aspects: What about their procedures, rules, and policies

What costs and benefits you feel unions contribute today : Share your thoughts on labor unions today. Do you have any personal or family experiences with unions? Do unions serve a valuable purpose in today's business world? Be specific about what costs and benefits you feel unions contribute today.

Automatic stabilizers change the federal budget balance : If Automatic stabilizers change the federal budget balance by $70 billion for every 1 percent change in real GDP growth, what will happen to the federal budget balance if the economy falls into a recession of -3 percent from a growth path of +2 perce..

Global per capita income-maintain current living standards : The World Bank projects that the world's population will increase from 7 billion to 8 billion in 2025. World output today is roughly $80 trillion. What is global per capita income today? What will per capita income be in 2025 if the world's economy d..

Marginal revenue product of the second unit of factor : When a perfectly competitive firm (that sells its good for $18 per unit) hires 1 unit of factor X it produces 35 units of output and when it hires 2 units of factor X it produces 55 units of output. Marginal revenue product of the second unit of fact..

All investment must be financed with consumer saving : Suppose that every additional 3 percentage points in the investment (I / GDP) booat GDP growth by 1 percentage point. Assume also that all investment must be financed with consumer saving. The economy is now characterized by

Analyse effective change control communication strategies : Analyse effective change control communication strategies. Include two suggestions for ensuring adequate change control on projects that involve outside contracts. Justify your assertions.

User Account

All Pages