Questions
Which of the following would not be good ways to spend the borrowed money?

The government of the US has decided to run a budget deficit. Which of the following would not be good ways to spend the borrowed money? (Select all that apply)
Select all that apply:
Increased spending on Medicare
Improvements in public education
Rebate checks for all citizens
Investment in public highways

In: Economics

2. Fiscal Policy options to address a recessionary gap: Suppose the economy’s MPC is .75 or...

2. Fiscal Policy options to address a recessionary gap: Suppose the economy’s MPC is .75 or 3/4.

A. If the government increases spending by $60 billion, what will the cumulative increase in AD be equal to?

B. If the government decreases taxes by $60 billion, what will the cumulative increase in AD be equal to?

In: Economics

How does the fact that Canadians or other foreign nationals come to America for health care...

How does the fact that Canadians or other foreign nationals come to America for health care tend to influence the measured share of our GDP that is devoted to health care in America. Does their spending show up in the numerator used to calculate that share. Does their income show up in the demoninator

In: Economics

Consider an economy that is at potential output. Using the aggregate demand curve and the inflation...

Consider an economy that is at potential output. Using the aggregate demand curve and the inflation adjustment line, describe what would happen to real GDP and inflation in the short run, in the medium run, and in the long run if the government cut spending on defense. Be sure to provide an economic explanation for your results.

In: Economics

Consider an economy that is at potential output. Using the aggregate demand curve and the inflation...

Consider an economy that is at potential output. Using the aggregate demand curve and the inflation adjustment line, describe what would happen to real GDP and inflation in the short run, in the medium run, and in the long run if the government cut spending on defense. Be sure to provide an economic explanation for your results.

In: Economics

marketing firm asked a random set of married and single men as to how much they...

marketing firm asked a random set of married and single men as to how much they were willing to spend for a vacation. At = .05, is a difference in the two amounts?

Married men

Single men

Sample size

70

70

Mean spending

420

445

Sample variance

5000

6000

In: Statistics and Probability

Assume the government increases spending by $100. Explain: (1) through the multiplier process, why income Y...

Assume the government increases spending by $100. Explain: (1) through the multiplier process, why income Y will increase; and (2) why the money market (LM Curve) cause investment to fall and thus the increase in GDP to be less than hoped for. I NEED MATH AND GRAPHs please!

In: Economics

After reading Special Topic 1 and Special Topic 2, write a 2-page paper answering and describing:...

After reading Special Topic 1 and Special Topic 2, write a 2-page paper answering and describing: Can democracy survive if a majority of the citizenry pay little or nothing in taxes while benefiting directly from a higher level of government spending? Why or why not? Discuss

In: Economics

Goldman uses meals served as the activity level for its fish house. The company has a...

Goldman uses meals served as the activity level for its fish house. The company has a cost formula for ingredients of $600 + $.80q. The actual cost of ingredients for June was $2,240 and the restaurant served 1,700 meals. The budget was based on serving 1,800 meals.

What is the spending variance for June?  

In: Accounting

Discuss how changes in the Federal Reserve’s monetary policy affect at least 1 of the 4...

  • Discuss how changes in the Federal Reserve’s monetary policy affect at least 1 of the 4 components of GDP (consumption, investment, government spending, net exports).
  • Have the Federal Reserve’s countercyclical monetary policies been effective in moderating business cycle swings? Justify your response.

In: Economics