Increase in government spending

Assignment Help Macroeconomics
Reference no: EM131091617

Suppose that in a period of sluggish growth, there is a debate on whether to stimulate the economy by means of a tax cut or an increase in government spending. In the short run, a tax cut, as contrasted with an increase in government spending, is

a) equally powerful on a per dollar basis, favoring private over public spending

b) not quite as powerful on a per dollar basis, favoring private over public spending

c) equally powerful on a per dollar basis, and neutral between private and public spending

d) not quite as powerful on a per dollar basis, and neutral between private and public spending

Reference no: EM131091617

Questions Cloud

Determine the phase margin and gain margin : Consider the system shown in Figure 7-161. Draw a Bode diagram of the open-loop transfer function G(s). Determine the phase margin and gain margin.
Differentiate between pareto optimality and social optimalit : Differentiate between pareto optimality and social optimality. Which one is more sensitive to the general economic welfare?
Describe the theories of the human relations : Describe the theories of the Human Relations and Scientific Management schools, and explain how each approach could improve an organisation's effectiveness.
Market for loanable funds-market for foreign-currency : 1) Discuss the importance of the market for loanable funds and the market for foreign-currency exchange to the achievement of the strategic plan.
Increase in government spending : Suppose that in a period of sluggish growth, there is a debate on whether to stimulate the economy by means of a tax cut or an increase in government spending. In the short run, a tax cut, as contrasted with an increase in government spending, is
Find the maximum value of k for which the system is stable : Find the maximum value of K for which the system is stable
Principles of business excellencecourse : o Please view the video films through the links given below, read the pdf document through the given link, and post your views individually on the DB by covering the three discussion points (your contributions would be evaluated by using the rubr..
Describe visitor characteristics : Describe visitor characteristics (number of visitors, type of visitors, how often do they visit, when do they visit, what part of the site do they typically use, how long do they stay, etc.)
Difference between a marshallian demand function : What is the difference between a Marshallian demand function and a Hicksian demand function? Which one is most useful and when are they used? What is their interpretation?

Reviews

Write a Review

Macroeconomics Questions & Answers

  What does gross domestic product tell us

What does gross domestic product (GDP) tell us? How did GDP change from 2008? What caused these changes? What is real GDP? What was real GDP in 2008 and has it changed since 2008?

  What is the marginal rate of substitution between a and b

Susie is at the grocery store buying milk. She has a choice between milk from Dairy A or milk from Dairy B. She doesn't actually care at all which dairy her milk comes from. (a) Draw a possible indifference curve for Susie between milks A and B.

  Demand and supply analysis price of dairy cow

What takes place to the equilibrium price and quantity of ice cream in response to each of the following? Describe your answers.

  Calculating annualized return

The treasurer of a U.S. firm noted that although short run deposits in Swiss bank accounts had earned the company only a 3% annualized return when measured in Swiss francs, in dollars the company had realized a 12% rate of return.

  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..

  Quality management philosophies

Determine the main differences between re-engineering and continuous Improvement as Quality Management Philosophies?

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  What is the duration of this loan

What is the duration of this loan? What is the duration of a five-year, $1,000 Treasury bond with a 10 percent semiannual coupon selling at par? Selling with a yield to maturity of 12 percent?

  How the population increases the demand for haircuts

Suppose that the market for haircuts in a community is perfectly competitive and that the market is initially in long-run equilibrium. Subsequently, an increase in population increases the demand for haircuts. In the short run, we expect that the ..

  Concepts of the market equilibrating process

As a manager, it is important to understand how economic ideology, and specifically supply and demand, are a part of your everyday business decisions.

  Determine the optimal fraction of output purchased by govt

In the Macroeconomics book by Stephen Williamson (5th Edition) in the Appendix for Ch. 7-8 Problem 1 the problem asks: Suppose in Solow growth model that there is government spending financed by lump-sum taxes, with total government spending G=gY,..

  Price elasticity of demand for automobiles

Suppose that the price elasticity of demand for automobiles is known to be -2.50. Will a shortage of steel (note: steel is the primary input into the production of cars) likely increase or decrease the revenues of car manufacturers? Carefully expl..

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd