Reference no: EM1373836
Assume the construction of the $360M stadium is to be financed entirely with debt to be repaid over twenty years. The repayment burden is negilible in short run. If the multiplier effect is Additional Local GDP = [1/(1-MPC)] x initial shift in autonomous expenditures, and Marginal Propensity to Consume is 80 percent, how much economic activity is generated? $1.8 billion
Assume that the $360M is to be financed by an increase in taxes. The increase in taxes will raise the $360M immediately. How much economic activity is created?
Assume that the stadium is to be financed by existing cash balances of the State, and the State will have to give up the construction of the Convention Center that was planned. How much economic activity is generated?
Determine the impact of the construction of the stadium on the local Real GDP and the Price Level, depending on whether the local economy is at or below full employment?
Determine the real contribution to local economy, what is the total multiplier effect, if $100M's worth of components such as structural steel, electrical equipment, seats etc. is purchased from out-of-state?
Assume the team is extremely successful and the stadium is full every week.
How does the spending by the locals affect economic activity? How does the spending from out-of-town visitors affect the economic activity?
How much additional tax-revenue does all of the above generate? Income tax on increased employment level, sales tax on additional spending etc.
|
Find the level of equilibrium gdp
: Assume you also have the following additional macroeconomic information of Bush Garden economy in the context of Keynesian Expenditure model.
|
|
Effect on interest rates and unemployment
: Discuss how the Federal Reserve kept the United States from sliding into a deeper recession after September 11, 2001.
|
|
Unification of us, canada, and mexico as a single economy
: Canada, the US and Mexico are clearly separate countries. Does this information alone imply a lower standard of living in each of three nations compared to the condition where they are united into a single new country?
|
|
Expenditures approach and income approach
: You all hear on TV every day or so that the United States customers has been holding up and kept our economy going.
|
|
Real contribution to the local economy
: Assume the construction of the $360M stadium is to be financed entirely with debt to be repaid over twenty years. The repayment burden is negilible in short run.
|
|
Optional strategies to tackle a foreign market
: Determine the pros and cons of optional strategies to tackle a foreign market, such as acquisition of a local company, direct investment in production
|
|
Major economic facts for the retail trade unions
: Some states have had laws limiting the sale of most goods on Sunday. Most customers oppose these laws because they discover Sunday afternoon a good time to shop,
|
|
Determine the individual marginal tax rate
: An individual's taxable income increase from $20,000 to $30,000 a year, and taxes paid amount increase from $5,000 to $8,500. Determine the individual's marginal tax rate is:
|
|
Evolution of fiscal policy
: Determine what did classical economists suppose about flexibility of values, wages, and interest rates and what disagreements did Keynes have with classical economists?
|