User Account

All Pages

Changes in government spending and taxation

Assignment Help Business Economics
Reference no: EM131918350

Let's say that our country's Gross Domestic Product is at $15 billion (this year). We also know that we currently have unemployment and that we would have full employment if our Gross Domestic Product were to reach $18.5 billion. If the Keynesian multiplier is 7, then what would Keynesian economists recommend regarding changes in government spending and taxation?

  • We need to decrease government spending by $.4 billion.
  • We need to decrease taxes by $.4 billion.
  • We need to increase government spending by $.4 billion.
  • We need to increase government spending by $.5 billion.
  • We need to decrease government spending by $2 billion.

Reference no: EM131918350

Questions Cloud

Deposits at the start of year : How much will he end up with? How much would he end up with if he instead made his deposits at the start of each year?
What is the total noncontrolling interest : Thyme, Inc. owns 16,000 of Sage Co.'s 20,000 outstanding common shares. What is the total noncontrolling interest after the additional shares are issued
Discuss concrete-operational period of cognitive development : Through the dialogue, the children should exhibit evidence of being in the concrete-operational period of cognitive development.
Determine casey cost of goods manufactured : Cost of direct materials used in production 390,000. Determine Casey's cost of goods manufactured for the month ended January 31, 2017
Changes in government spending and taxation : If the Keynesian multiplier is 7, then what would Keynesian economists recommend regarding changes in government spending and taxation?
Determine the tax consequences to walter : Shirley holds the land for one year and a day and sells it in the marketplace for $169,000. Determine the tax consequences to Walter
Consumption pattern for goods and services : Select a specific consumer behavior and construct a "mini case study" that highlights the workings of marginal utility and how it affects the consumption
Describe origin and consequences of industrial revolution : Describe in detail the origin and consequences of the industrial revolution. Why do you think the human impact of the industrial Revolution is often overlooked?
How do you define bullying : How do you define bullying? Were you: On the giving end? On the "receiving" end of the incident? Not involved in any incidents?

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

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