How decrease in personal income taxe would stimulate economy

Assignment Help International Economics

Reference no: EM13221129

Consider the U.S. aggregate economy, which is currently operating below its potential. Although the unemployment rate has been slowly declining, it is still well above the target rate of about 5%; the labor fprce participation rate of 63.6% is continuing to decline; and industrial capacity utilization is 77.8%, which is 2.5% below its long-run average.

(A) In this context, describe how an increase in goverment expenditures on goods and services would stimulate the aggregate economy?

(B) Also in this context, describe how a decrease in personal income taxes would stimulate the aggregate economy?

Reference no: EM13221129

Questions Cloud

Describe performance measurement tools : Describe performance measurement tools that are both broad in scope and yet summarized in a few key indicators. In this assignment you will create a specific dashboard for an operating unit of a healthcare organization.

What is the breakeven cost of gas if the car will be driven : Consider two cars. One has a price of $30,000. It averages 20 miles per gallon. A $1,500 tax credit is offered by the government for this vehicle. The other has a price of $27,000. It averages 16 miles per gallon. Interest rate= 3% per year.

Compute the formula weight : Calculate the formula weight of CuSO4 . Use the following atomic weights: Cu is 63.5463 g/mol, S is 32.0666 g/mol, and O is 15.99943 g/mol. Your reported answer should have the correct number of significant figures and units.

Explain what will the concentration of all the reactants : what will the concentration of all the reactants and products be when the reaction reaches equilibrium at 527 degrees C?

How decrease in personal income taxe would stimulate economy : Consider the U.S. aggregate economy, which is currently operating below its potential. Although the unemployment rate has been slowly declining, it is still well above the target rate of about 5%; the labor fprce participation rate of 63.6% is con..

What is the size of the internal electrical pathway : What is the size of the internal electrical pathway along which signals are sent from one part of the computer to another?

Which license enables anyone on the network : Which license enables anyone on the network to install and use the software?

Which is a windows feature that provides options : Utility systems are customized by using the control panel, which is a Windows feature that provides options that set default values for the Windows operating system.

Calculate profit-consumer surplus and welfare : Allow an inverse demand curve in a monopoly to have the following form: P[Q]=50-3*Q, allow the MR curve to be: MR[Q]=50-6*Q and say the firm has TC[Q]=10*Q2, and MC[Q]=20*Q. Derive the price the monopolist will charge.

User Account

All Pages