Problems of inflation or unemployment

Assignment Help Macroeconomics
Reference no: EM131056465

Assume that production in the United States is valued at $10,000. National income is therefore $10,000. Of their income, workers pay $1,000 in taxes, save $500, spend $8,000 on consumer goods, and spend $500 on imports. Businesses spend $1,000 in new investment spending. And, foreigners spend $500 on exports. In order to avoid any problems of inflation or unemployment, the government should have a budget deficit or surplus of:

a. 0

b. $500 surplus

c. $500 deficit

d. $1,000 deficit 

e. $2,000 deficit

Reference no: EM131056465

Questions Cloud

Chain of workout facilities : HealthWorks Inc, a chain of workout facilities, is looking at a new type of exercise equipment for all of its stores. The total amount of investment (an immediate outflow) will be $550 today and the equipment is expected to last for 5 years with no s..
What is the discounted payback period for this investment : The Seattle Corporation has been presented with an investment opportunity which will yield cash flows of $30,000 per year in Years 1 through 4, $35,000 per year in Years 5 through 9, and $40,000 in Year 10. What is the discounted payback period for t..
Optimum exponential quanta1 response : Optimum exponential quanta1 response. For Problem 9.1, suppose that all I units have a common inspection time q, = q, I = I,. . . ,I. Suppose Y of the I units are failed on inspection.
Considering the purchase of new parking system : A small town in Ohio is considering the purchase of a new parking system that would enhance the collection of parking fees while providing additional convenience to shoppers. The hardware requires an immediate outflow (an investment today) of $1350.
Problems of inflation or unemployment : Businesses spend $1,000 in new investment spending. And, foreigners spend $500 on exports. In order to avoid any problems of inflation or unemployment, the government should have a budget deficit or surplus of:
Where does the data appear in the file and why : Where does the data appear in the file
Describe the variables and their scale of measurement : Identify a research question from your professional life or career specialization that can be addressed by a correlation. Indicate why a correlation would be the appropriate analysis for this research question.
Price change than bonds with low coupon rates : Which of the following statements is true? Given a change in market interest rate, bonds with high coupon rates have greater price change than bonds with low coupon rates. A bond that is selling at discount has yield to maturity lower than the coupon..
Show that a large file can be successfully created : Compile the program with the _FILE_OFFSET_BITS macro set to 64, and test it to show that a large file can be successfully created.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Discuss the risks of doing business in china

The scenario is that I am going to open restaurants in China. One in Shanghai and one Beijing. These restaurants will serve healthy food such as salads, sandwiches, pizza, soup,

  What is the price elasticity of demandis it elastic

If the price of a good increases by 8% and the quantity demanded decreases by 12%, what is the price elasticity of demand?is it elastic, inelastic or unitary elastic?

  Is the budget deficit getting larger or smaller

What can you say about trends. Is the budget deficit getting larger or smaller. What about the national debt. Why are people so concerned about the size of the national debt

  Draw his daily budget constraint in a 16hour day

"Anjali and Sanu are married, and Sanu is the breadwinner. Anjali provides 4 non-market hours of service daily, and her productivity at home is $15. Sanu's earnings are $20/hour, and his productivity at home is $10/hour. Draw his daily budget constra..

  An electric company must decide whether to install a

an electric company must decide whether to install a scrubber to reduce sulfur dioxide emissions from its electric

  Economists generally agree that high budget deficits today

economists generally agree that high budget deficits today will reduce the growth rate of the economy in the future.

  What macroeconomic effects of minimum wage change in economy

How this changes in the minimum wage, could possibly affect the unemployment rate? What will be the macroeconomic effects, of minimum wage change in the economy?

  Why does price discrimination occur

Price discrimination is the practice of charging different customers or groups of customers different prices for the same product. Why does price discrimination occur?

  Write down the equation of the budget line

Write down the equation of the budget line.

  Explain how do they impact the domestic economies

Explain how do they impact the domestic economies of nations. How do they affect individual business decisions.

  A furniture manufacturer is considering moving

A furniture manufacturer is considering moving its production to India. Its production function is: Q = 1.52L.6K.4. In Canada, w = $24 & r = $4. In India, w = $4 & r = $24.

  Evaluating and interpreting different elasticity of demand

What is the income elasticity?  Interpret the elasticity in a mathematic and economic context -- what does this number tell you?  Is the own price elasticity consistent with economic principles?  Explain.

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