Questions
What are the arguments against additional federal fiscal spending in the next three months? Timeline is...

What are the arguments against additional federal fiscal spending in the next three months? Timeline is today's current economic and political climate. Thorough answer please, Thank you.

In: Economics

In an economy with marginal propensity to save (MPS) of .4, what effect will an increase...

In an economy with marginal propensity to save (MPS) of .4, what effect will an increase of $100 in government spending have on equilibrium and what effect a tax cut of $100 will have on equilibrium.

In: Economics

Given: initial equilibrium = $50,000 and the MPC = .8 a. Calculate the spending multiplier. b....

Given: initial equilibrium = $50,000 and the MPC = .8

a. Calculate the spending multiplier.

b. If planned investment decreases by $1500, calculate the CHANGE in equilibrium.

c. Calculate the new total equilibrium.

In: Economics

You read in the newspaper that economists predict a sharp rise in consumer spending. The current...

You read in the newspaper that economists predict a sharp rise in consumer spending. The current level of unemployment is at a historical low of 3 percent. What advice would you give the government on the policies it should adopt?

In: Economics

The predicted sharp rise in consumer spending is attributed by economists to lower predicted savings. in...

The predicted sharp rise in consumer spending is attributed by economists to lower predicted savings. in the last few weeks,interest rates have fallen and consumer confidence to borrow has risen. using a consumption function diagram illustrate the expected effect.

In: Economics

Which of the following factors helps to explain the sustained increases in health care spending in...

Which of the following factors helps to explain the sustained increases in health care spending in the United States?

a) Increasing cost of malpractice insurance

b) Slow growth in labor productivity in healthcare compared with the economy as a whole

c) Unnecessary, inefficient paperwork

In: Economics

A microeconomist wants to determine how corporate sales are influenced by capital and wage spending by...

A microeconomist wants to determine how corporate sales are influenced by capital and wage spending by companies. She proceeds to randomly select 26 large corporations and record information in millions of dollars. The Microsoft Excel output below shows results of this multiple regression.
SUMMARY OUTPUT
Regression Statistics
Multiple R_____0.830
R Square______0.689
Adj. R Square__0.662
Std. Error_____17501.643
Observations___26
ANOVA
__________df________SS___________MS_______F_____Signif F
Regression__2____15579777040__7789888520__25.432__0.0001
Residual___23_____7045072780___306307512
Total______25___22624849820
____________Coef_________StdError_____tStat___p-value
Intercept_____15800.0000___6038.2999___2.617___0.0154
Capital_______0.1245_________0.2045____0.609___0.5485
Wages_______7.0762_________1.4729_____4.804__0.0001
At the 0.01 level of significance, what conclusion should the microeconomist reach regarding the inclusion of Capital in the regression model?

1) Capital is significant in explaining corporate sales and should be included in the model because its p-value is less than 0.01.

2) Capital is significant in explaining corporate sales and should be included in the model because its p-value is more than 0.01.

3) Capital is not significant in explaining corporate sales and should not be included in the model because its p-value is less than 0.01.

4) Capital is not significant in explaining corporate sales and should not be included in the model because its p-value is more than 0.01

In: Statistics and Probability

A builder started to construct an apartment by spending $1Million initially and in addition, paid $50K...

A builder started to construct an apartment by spending $1Million initially and in addition, paid $50K for county approval. The construction was canceled due to regulatory issues. What is the Cost of imperfect contract? and  State the factors that caused the issue of imperfect contract?

Thanks.

In: Economics

According to the theory of new classical economics, if business sentiment and investment spending decrease


According to the theory of new classical economics, if business sentiment and investment spending decrease, the aggregate demand curve _______ , the price level falls, and aggregate output _______ 

 shifts right; decreases 

 shifts right; increases 

 shifts left; remains constant 

 shifts left; decreases

In: Economics

How much government spending needs to be increased to maintain full employment in the economy If...

How much government spending needs to be increased to maintain full employment in the economy If the economy was facing recessionary gap of $900 billions? Assume MPC is .9. How much tax cut should government give if they wanted to eliminate this recessionary gap through tax cut?

In: Economics