Marginal Propensity to consume is .68 when a recessionary gap of 200 Billion exist. Calculate the amount of government spending, ceteris paribus, necessary to remove the gap. Calculate the amount of a tax cut, ceteris paribus, necessary to remove the recessionary gap.

Contrast the approach a supply side economist would use to remove the recessionary gap in question 3.

Please fill in the below blanks regarding economic decisions and their impacts (positive or negative): Input Decision Impact (positively / negatively)

A Decrease in the Government Spending impacts , but affects _______ . An Interest Rate cut impacts GDP Growth ___________.

An Increase in the Income Tax Rate impacts ___________________________ , and ________________________ .

A Decrease in the Corporate Tax rate increases the ________________________________, but decreases ____________________________.

Inflation can be increased by _______________________________.

In non-probability sampling, the sample means can be used to estimate population means.

T or F

when developing a questionnaire, researchers should avoid:

If Don t-Know response is legitimate, it should be kept as a separate reply category.

T or F

The government has implemented fiscal and monetary policies in order to stabilize the economy as a result of the COVID-19 pandemic. Discuss three channels by which the government’s monetary policy actions might affect stock prices and aggregate spending. What do you think about the impact these monetary policy decisions might have on the labour market ?

Initially a small open economy is in recession. The government implements expansionary fiscal policy by increasing government spending. However, central bank worries about inflation and increase interest rate. Examine the effects of this policy combination on output, interest rate and the components of demand under flexible exchange rate regime(Hint:Useopen economyIS-LM model)

A father (weight W = 858 N) and his daughter (weight W = 372 N) are spending the day at the lake. They are each sitting on a beach ball that is just submerged beneath the water (see the figure). Ignoring the weight of the air in each ball, and the volumes of their legs that are under the water, find (a) the radius of father's ball and (b) the radius of daughter's ball

This session's chapter readings discuss different things that will influence people across a national economy to either save or consume (that is, spend) more of their income. In light of current economic conditions in the United States, have you changed your saving or consumption (spending) habits? Give an example from your own experience to illustrate your answer.

1. What is the balance of payments? Explain how s trade surplus in China with the US leads to a net capital outflow of investment from China to the US? Using the international macroeconomic model, show the model and describe the relation between output, spending, savings investment, trade balances, government budgets and capital investment across trading nations?

When the Government runs a budget deficit, it must sell Treasury bonds to finance that

deficit. To analyze the impact of increased government spending, assume the Treasury will

be selling new 1-year Treasury bills. Use a supply and demand for bonds model to

determine what is likely to happen to interest rates on 1-year bills. (Explain your graph)