What is the impact of military expenditure on the economy? Is it an investment and what...

What is the impact of military expenditure on the economy? Is it an investment and what does it contributes to the welfare of the nation?

Expert Solution

Rahul Sunny answered 2 years ago

Contrast and compare the neo-classical and Keynesian’s view on the economic impact of military expenditure.

What is the meaning of investment banking and its impact on the economy?

Evaluate the effectiveness of an increase in investment expenditure on the performance of an economy.

What is an investment shock and how can it positively or negatively impact the economy? is...

What is an investment shock and how can it positively or negatively impact the economy? is it part of a demand shock?

Suppose that for a particular economy and period, investment was equal to 100, government expenditure was...

Suppose that for a particular economy and period, investment was equal to 100, government expenditure was equal to 75, net taxes were fixed at 100, and consumption (C) was given by the consumption function C = 25 + 0.8YD where YD is disposable income and Y is GDP. a. What is the level of equilibrium income (Y). b. What is the value of the government expenditure multiplier? Of the tax multiplier? c. Suppose that investment declined by 40 units to...

Scenario: In a closed economy without a government, the consumption expenditure equals $5,000 and the investment...

Scenario: In a closed economy without a government, the consumption expenditure equals $5,000 and the investment expenditure equals $2,000. Refer to the scenario above. If the population of the economy is 200, the per capita national income is ________. Group of answer choices $35 $17 $50 $10 A hypothesis states that religious teachings, family ties, and/or social norms are the causes of economic prosperity. According to this hypothesis, ________. geography is a fundamental cause of prosperity culture is a proximate...

Problem 4 Consider the following economy: Consumption Expenditure 446,832 million Planned Investment Expenditure 346,877 million Government...

Problem 4 Consider the following economy: Consumption Expenditure 446,832 million Planned Investment Expenditure 346,877 million Government Expenditure 446,832 million Exports 402,443 million Imports 388,374 million Marginal Propensity to Save 0.3 Marginal Tax Rate 0.32 Autonomous Taxes 301,240 million Marginal Propensity to Import (nx) 0.04 (e) Calculate the marginal leakage rate. (0.5 mark) (f) Assume that the natural rate of output for this economy is estimated as $1,200,000 million. (i) Is this economy facing a recessionary or inflationary gap? (0.5 mark) (ii) Illustrate...

Suppose an economy experiences a decrease in investment expenditure. a) Show graphically using AD-AS model how...

Suppose an economy experiences a decrease in investment expenditure. a) Show graphically using AD-AS model how the price level and output are affected in the short-run. b) Can the government use fiscal policy to offset the effects on price level and output, explain?

Consider an economy with the following components of aggregate expenditure: Consumption function: C=20 + 0.8YD Investment...

Consider an economy with the following components of aggregate expenditure: Consumption function: C=20 + 0.8YD Investment function: I = 30 Government expenditures: G = 8 Export function: X= 4 Import function: M=2 + 0.2Y Tax rate, t = 0.2 or 20%. Answer the following question. What is the marginal propensity to consume in this economy? What is the equation of the aggregate expenditure function in this economy? Determine the size of the autonomous expenditure multiplier. Determine the size of the...

Income (Yd) Consumption Expenditure Saving Investment Expenditure Government Expenditure Net Export Expenditure Aggregate Expenditure $8000...

Income (Yd) Consumption Expenditure Saving Investment Expenditure Government Expenditure Net Export Expenditure Aggregate Expenditure $8000 $11,000 $2,500 $5,000 $12,500 12,000 14,000 2,500 5,000 12,500 20,000 20,000 2,500 5,000 12,500 30,000 27,500 2,500 5,000 12,500 50,000 42,500 2,500 5,000 12,500 100,000 80,000 2,500 5,000 12,500 1. Calculate savings, autonomous consumption, MPC, MPS, break even income, and the equilibrium level of income (Y = AE = C + I + G + NX) in the above given information. 2. Draw a...

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