Business, 01.08.2020 22:01 Beres7

Question 2: Keynesian Fiscal Policy Assume the economy has a GDP of $11,500 billion. The unemployment rate is at 7.3% and has been slowly rising for the last 6 months. Inflation was at 2.3% one year ago but has since dropped to near 0%. The MPC in the economy is .80 and the Natural Rate of Unemployment is 4.5%. The target rate for inflation is 2%. a. What problem is the economy currently facing? b. Is the problem serious enough that government should act to solve it? c. If the government does decide to act, what size government expenditure would fix the problem d. What size tax change would fix the problem? e. Why would it be better for government to solve the problem using government purchases (part c above) rather than taxes (part d above) to solve the problem? f. Assuming that government does decide to use the tax policy, what could happen to cause the policy to be ineffective?

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 20:50

Suppose the price of frozen yogurt, a substitute for ice cream, increases. what happens to equilibrium price and quantity of ice cream? a. the price and quantity of ice cream both increase b. the price and quantity of ice cream both decrease c. the price of ice cream increases and the quantity decreases d. the price of ice cream decreases and the quantity increases

Answers: 3

Answer

Business, 22.06.2019 05:50

Nichols inc. manufactures remote controls. currently the company uses a plantminuswide rate for allocating manufacturing overhead. the plant manager is considering switchingminusover to abc costing system and has asked the accounting department to identify the primary production activities and their cost drivers which are as follows: activities cost driver allocation rate material handling number of parts $5 per part assembly labor hours $20 per hour inspection time at inspection station $10 per minute the current traditional cost method allocates overhead based on direct manufacturing labor hours using a rate of $20 per labor hour. what are the indirect manufacturing costs per remote control assuming an method is used and a batch of 10 remote controls are produced? the batch requires 100 parts, 5 direct manufacturing labor hours, and 3 minutes of inspection time.

Answers: 2

Answer

Business, 22.06.2019 11:00

Zoe would like to be able to save for night courses at the local college. which of these would be a good way for zoe to make more money available for savings without dramatically changing her budget? economía

Answers: 2

Answer

Business, 22.06.2019 19:00

Which of the following is likely not a benefit of requiring a grand jury to listen to and examine all of the evidence against a person suspected of committing a serious crime and then independently deciding whether or not to hand down an indictment? 1.the grand jury system provides the accused another safeguard against being sent to trial and facing conviction based on flawed evidence. 2.the members of the grand jury are drawn from the community and are empowered to render independent decisions about whether or not the government has collected enough evidence to bring an individual to trial. 3.the grand jury’s decision can provide prosecutors insight into what is necessary to build a sufficient case if a similar crime is presented later. 4.the grand jury is impaneled to rubber-stamp prosecutors’ cases, which makes it possible for more cases to reach trial.

Answers: 2

Answer

You know the right answer?

Question 2: Keynesian Fiscal Policy Assume the economy has a GDP of $11,500 billion. The unemploymen...

Questions