User Account

All Pages

What are the future implications for the path of y

Assignment Help Macroeconomics
Reference no: EM132507014

In our simple model, consumption is a function of disposable income, C=C(Y-T). If the increase in G leads to no long-run increase in Y, explain what component of aggregate expenditure must get "crowded out" by the increase in G. Remember your national-income accounting for a closed economy that says: Y = Ca + la + Ga where the "a" subscript denotes "actual" expenditure. What are the future implications for the path of Y* from this reduction in a specific type of expenditure?

Reference no: EM132507014

Questions Cloud

What are the six primary functions of the central bank : What are the six primary functions of the central bank? Describe each.
What is the maximum amount of money : If a single bank faces a requires reserve ratio of 20 percent, has total reserves of $500,000, and checkable deposit liabilities of $400,000
Undesirable for the economy in the long run : Explain, in words, why an increase in government purchases may be desirable in the short run, but possibly undesirable for the economy in the long run.
Compute the customer margin of big sky outfitters : Compute the customer margin of Big Sky Outfitters. (Round your intermediate calculations and final answer to the nearest whole dollar amount)
What are the future implications for the path of y : What are the future implications for the path of Y* from this reduction in a specific type of expenditure?
Significant impact on gasoline consumption : Do you think that such an increase, reflected in the price of gasoline, would have a significant impact on gasoline consumption?
Medicare payroll tax with the social security payroll tax : Identify the category of tax that applies to payroll taxes and contrast the Medicare payroll tax with the Social Security payroll tax.
Regional tourism and hospitality promotion organization : As the manager of reputable resort hotel, what arguments would you use with your board of directors to obtain financial support for your local and regional
What are the reasons is more efficient : When making management decisions, is variable or absorption costing more efficient and what are the reasons it is more efficient?

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  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?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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