The economy is experiencing a contraction recessionary gap

Assignment Help Microeconomics
Reference no: EM13379042

The economy is experiencing a contraction (recessionary gap) of $400 billion. What government spending stimulus would you recommend to move the economy back to full employment if the MPC is 0.75? Would your policy be any different if the MPC were 0.66?

Reference no: EM13379042

Questions Cloud

The new mayor has pledged to reduce air pollution and the : the new mayor has pledged to reduce air pollution and the only source of air pollution in the city are two
You are meeting with accounting department personnel to : you are meeting with accounting department personnel to make sure they understand the importance of corporate social
Assuming that you are the controller for a publicly traded : assuming that you are the controller for a publicly traded company your cfo has asked you to prepare a presentation for
Your ceo read a recent report on the importance of the sox : your ceo read a recent report on the importance of the sox act but he acknowledged that he does not know much about it.
The economy is experiencing a contraction recessionary gap : the economy is experiencing a contraction recessionary gap of 400 billion. what government spending stimulus would you
Consider the following data which applies to avataria and : consider the following data which applies to avataria and twilightia in the years 1990 and 2010. in both countries the
Buy a computer for 2500 now keep it for 8 years and then : buy a computer for 2500 now keep it for 8 years and then sell it for 800. the computer is not expected to require any
Suppose that the trade pattern of a country is that it : suppose that the trade pattern of a country is that it exports foodstuffs and imports fancy sports equipment. can you
Suppose we have a random sample of 50 people and their : suppose we have a random sample of 50 people and their weight w and height h are recorded to the nearest pound and inch

Reviews

Write a Review

Microeconomics Questions & Answers

  Above you see three indifference curves and a budget

above you see three indifference curves and a budget line.nbsp answer the following questions.a.nbsp if this consumers

  What is the relationship between economies of scale and a

what is the relationship between economies of scale and a natural monopoly? what is simultaneous consumption and

  Folk wisdom has it that when people lose their jobs they

folk wisdom has it that when people lose their jobs they drown their sorrows in drink.economists have long challenged

  You are to research the rise and fall of the early days of

you are to research the rise and fall of the early days of the world wide web. in 1993 tim berners-lee created the web

  Build and validate a multiple regression model

Interpret the coefficients of the regression model. Which independent variable has the strongest impact on the dependent variables

  Which country is experiencing the higher rate of inflation

Suppose P (domestic price) and P* (foreign price) are both increasing. Now suppose that the dollar experiences a 5% nominal depreciation. a. Which country is experiencing the higher rate of inflation if the domestic currency experiences

  Give the economic intuition of the results on consumption

the price level and the money supply over the business cycle both in terms of correlation, magnitude and lead vs lag. Give the economic intuition of the results on consumption, investment, productivity, wages and price levels.

  What was an effective price flor in the labor market

Assume that labor supply is perfectly inelastic. If the demand for labor is inversely related to the real wage, what would the effect of a minimum wage be if it was an effective price flor in the labor market

  What is multiplier-how does it differ from govt multiplier

Government decreases current tax, while holding government spending in the present and future constant. (a) How does this effect aggregate output, employment and the real wage What is the multiplier and how does it differ from the government expen..

  What is the amount of repaid principal and the interest paid

Using the mortgage calculator spreadsheet available on VISTA, produce a graph which displays, for each month, the amount of repaid principal (also called normal paydown) and the interest paid when the nominal mortgage rate is r = 5.33% compounded ..

  G following macroeconomic modely c i0 g0

given the following macroeconomic modely c i0 g0 equilibrium income yc a by-t consumption

  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..

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