fiscal stimulas, Macroeconomics

Assignment Help:
Suppose the consumption function is C = $500 billion + 0.55Y and the government wants to stimulate the economy. By how much will aggregate demand at current prices shift initially (before multiplier effects) with

Instructions: Round your answers to 1 decimal place.

a) A $90 billion increase in government purchases?

$ billion

b) A $90 billion tax cut?

$ billion

c) A $90 billion increase in income transfers?

$ billion

What will the cumulative AD shift be for

d) The increased G?

$ billion


e) The tax cut?

$ billion

f) The increased transfers?

$ billion

Related Discussions:- fiscal stimulas

Negative performances of the economy, An advantage of observing statistics ...

An advantage of observing statistics from this range is that it encapsulates both positive and negative performances of the economy helping to produce a much more accurate insight

Demographics of the customers, A firm conducted a research about the demogr...

A firm conducted a research about the demographics of their customers. For the study they collected data about the following variables: gender, marital status, credit rating (low,

Explain the multiplier effect with example, Explain the multiplier effect w...

Explain the multiplier effect with example Deposits and loans in banks give rise to an important multiplier effect. We use a simple example to illustrate this effect. Consider

Sears rates its salespersons, Sears rates its salespersons according to the...

Sears rates its salespersons according to their sales ability and their potential for advancement. They sampled 500 salespeople with following data: Potential for Advancement Fair

Effectiveness of commercials, Suppose an advertising agency is conducting a...

Suppose an advertising agency is conducting a survey concerning the effectiveness of commercials during the Super Bowl. If 32% of people watch the Super Bowl, and if the agency con

Effect of a large federal deficit on interest rates, Explain, using the bes...

Explain, using the best framework you can think of (based on our class discussion), the effect of a large federal deficit on interest rates.

Money demand, money demand = 3500 - 250i what is the interest rate present ...

money demand = 3500 - 250i what is the interest rate present if the money market is in equilibrium

Explain the long-run phillips curve, Q. Explain the long-run Phillips curve...

Q. Explain the long-run Phillips curve? The long-run Phillips curve The augmented Phillips curve has an important consequence: the long-run Phillips curve must be vertical

Increase in income, How does an increase in income affect a consumer's budg...

How does an increase in income affect a consumer's budget line and their total utility?

Inftaion, what is the cause of inflation in PNG

what is the cause of inflation in PNG

Write Your Message!

Captcha
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