Estimate the gdp impact of a positive change

Reference no: EM13181570

a. What are the arguments for and against the use of fiscal policy to fight inflation, lower unemployment, and raise GDP (Keynesian and Monetarist)?

(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 80 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 $10 billion.

Reference no: EM13181570

Questions Cloud

State what was the mass of molecular oxygen from the air : what was the mass (g) of molecular oxygen from the air that combined with the substance to produce the dense gas? B. What is the ratio of the weight of oxygen burned to the weight of the dense gas produced?

What were kretovichs annual sales and its dso : an inventory turnover of 6 times, total current assets of $810,000, and cash and marketable securities of $120,000. What were Kretovich's annual sales and its DSO? Assume a 365-day year.

Find the fourier series for the odd extention of function : Find the Fourier series for the odd extention of the function f(x)=5, 0

Speech conclusion : Which of the following would you most likely find in a speech conclusion?

Estimate the gdp impact of a positive change : 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..

State calculate the detected activity from the count rate : Write a mathematical equations that show how you will calculate the detected activity from the count rate due to background radiation and the sample of KCl

What are the components of the current account : 1. Under the gold standard, there was penalty for running a payments deficit but no penalty for running a payments surplus.2.The Bretton Woods Agreement was intended, in part, to make adjustment more symmetric between deficit and surplus countries..

Will the firm realize an economic profit : Refer to the above data. If the product price is $60, at its optimal output, will the firm realize an economic profit, break even, or incur an economic loss? How much will the profit or loss be? Show all calculations. Refer to the above data. If t..

Compute the expectations of x and y : One of the 4 bus drivers is also randomly selected. Let Y denote the number of students on his bus. Compute the expectations of X and Y.

User Account

All Pages