Increase in government spending on equilibrium GDP

Assignment Help Business Economics

Reference no: EM13996046

Which piece of information would be least useful in trying to predict the effect of a $700M increase in government spending on equilibrium GDP?

A. Marginal propensity to save

B. The slope of the aggregate supply curve

C. Whether taxes are raised to pay for the spending increase

D. The current level of structural unemployment

E. Whether the bonds used to finance the spending were sold to households or to the Fed

Reference no: EM13996046

Questions Cloud

Net effect on output in the economy : Suppose the government spends $500M on a project that has absolutely no value to the country. If taxes were raised $500M to fund this project, the Keynesian model predicts that this will have no net effect on output in the economy. If the government ..

Which solvent would be a better choice : You are assigned to separate a mixture of benzoic acid and 2-naphthol using acid base extraction. You are given two possible liquids to dissolve the sample in: ethyl acetate and toluene. Which solvent would be a better choice? Why?

Mixture containing anisole : Mixture containing anisole (A), benzyl alcohol (B) and aniline (C) was dissolved in chloroform. Next two extractions were performed first using HCl then with NaOH. Which of the compounds could not be separated in this procedure. Explain and show the..

Cold naoh was added : A base-base extraction was done using 0.4g of a mixed compound at ratio 1:2:1 of benzoic acid, 2-napthol, napthalene that was dissolved in diethyl ether. NaHCO3 was added, shaken, and then separated off using a funnel and saved. Cold NaOH was added..

Increase in government spending on equilibrium GDP : Which piece of information would be least useful in trying to predict the effect of a $700M increase in government spending on equilibrium GDP?

World view-paying to pollute system would limit emission : World View: Paying to Pollute System Would Limit Emission, Allow Trading of Credits It costs nothing to pump greenhouse gases into the air. That is starting to change. Driven by fears of global warming, countries and states are trying to place a pric..

Draw the new budget constraint consumer faces under plan : Suppose that doctors’ visits cost $20, and the typical consumer has an income of $100. Consumers spend all of their incomes on doctors’ visits and a composite good that costs $1 per unit. Draw a graph that illustrates the consumer’s budget constraint..

Please explain the difference between aromatic : Please explain the difference between aromatic, antiaromatic, and nonaromatic groups.

Solve for the new equilibrium price and quantity : Suppose the demand for towels is given by QD = 100 − 5P , and the supply of towels is given by QS = 10P . a) Derive and graph the inverse supply and inverse demand curves. 1 b) Solve for the equilibrium price and quantity. c) Suppose that supply chan..

User Account

All Pages