How would the increase in defense affect the economy

Reference no: EM13224886

Suppose that in response to a foreign crisis, the government increases defense spending by $50 billion. How would the increase in defense affect the economy? How would the effects differ depending on the size and sign of the output gap when the crisis began?

Reference no: EM13224886

Questions Cloud

What are some of the challenges associated : What are some of the challenges associated with increasing capacity in a service business??? Select a type of service operation and offer at least three ways that they could increase their capacity.?

Discuss supply factors of economic growth pertinent : Given the products below and the events that affect them, indicate what happens to demand or supply, and the equilibrium price and quantity in a competitive market. Identify the determinant of demand or supply that causes the shift.

Does the eoq increase or decrease : Does the EOQ increase or decrease if estimates of setup (order) costs include fixed, semi-variable, and pure variable costs while inventory-holding costs include only pure variable costs? Vice versa? What are the implications? Explain.

Explain how the marketing opportunity would reflect : Explain how the marketing opportunity would reflect upon the firm. Would it have a positive or negative public relations effect on the firm? Would it result in great financial improvements, or only a minor improvement?

How would the increase in defense affect the economy : Suppose that in response to a foreign crisis, the government increases defense spending by $50 billion. How would the increase in defense affect the economy How would the effects differ depending on the size and sign of the output gap when the cri..

What would the four-firm concentration ratio be : Suppose that the most popular car dealer in your area sells 10 percent of all vehicles. If all other car dealers sell either the same number of vehicles or fewer, what is the largest value that the Herfindahl index could possibly take for car deal..

Strategic alliance be in the growth of the company : How could UTV become an Rs5 billion company by 2008 and an Rs10 billion company by 2010? What could the role of the strategic alliance be in the growth of the company?

What average price change per year for the entire 10-year : An economist has predicted that for the next 5 years the U.S. will have an 8% annual inflation rate, followed by 5 year at a 6% inflation rate. this is equivalent to what average price change per year for the entire 10-year period

Compute the mass of khp : calculate the mass of KHP(KHC8H4O4) needed to react completely with 25 mL of a 0.10 M NaOH solution?

User Account

All Pages