Explain why contractionary fiscal policy is more likely to decrease Real GDP in a closed economy than

Question:

Explain why contractionary fiscal policy is more likely to decrease Real GDP in a closed economy than in an open economy.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Economics

ISBN: 978-1285738321

12th edition

Authors: Roger A. Arnold

See More Books

Question Posted: Feb 12, 2016 08:03 AM

See More Questions

Contractionary policies are designed to slow the economy and reduce inflation by decreasing aggregate demand and aggregate output. Explain why contractionary fiscal policy and contractionary monetary...
If Congress and the president decide that an expansionary fiscal policy is necessary, what changes should they make in government spending or taxes? What changes should they make if they decide that...
Suppose country A undertakes a policy mix of contractionary fiscal policy and expansionary monetary policy. What doyou predict would happen to real interest rates, the value of country As currency,...
What is the average US Gross of movies? What is the average Budget of movies? What is the average Run time of movies? Place the plot of Budget and US Gross here.
Complete the following ANOVAtable. Source of Variance SS fMS F Treatment Erro Total 249.61 19 317.80 25
Which of the following will result in an increase in net working capital? a. An increase in cash. b. A decrease in accounts payable. c. An increase in notes payable. d. A decrease in accounts...
2. The amount that Abbey Corporation should record as a piecemeal recognition of constructive gain or loss at December 31, 2017, is: a $5,000 b $4,500 c $5,500 d None of the above
Selected accounts from the adjusted trial balance of Daniel's Sports Equipment on September 30, 2010, the fiscal year end. The company's beginning merchandise inventory was $81,222 and ending...
QUESTION 2 Which of the following items are required to produce a forecasted future condensed income statement? A Tax rate; asset turnover; NOPAT margin; revenue growth B. NOPAT margin; revenue...
Suppose a $3 per-unit tax is imposed on the sellers of this good. How much is the burden of this tax on the buyers in this market? Suppose a $3 per-unit tax is imposed on the sellers of this good....
Explain why expansionary monetary policy is more likely to increase Real GDP in an open economy than in a closed economy.
Explain why contractionary monetary policy lowers Real GDP more in an open economy than in a closed economy.
Identify the fundamental assumptions of the field of organizational behavior.
A displacement of 32 cm east is followed by displacements of 48 cm east and then 64cm west. What is the total displacement? At 3:00 p.m. a car is located 20 km south of its starting point. One hour...
Consider the following Demand curve for Uber Rides: Q = = 120 - 4p Suppose that the Supply Curve is perfectly elastic at a price of $20 per unit. 11. Draw both the Supply and Demand functions with Q...
You've decided to build a radio to listen to your favourite FM radio station, which broadcasts at 101.5 MHz. For the tuner, you'll be using an RLC circuit, but the only inductor you happen to have on...
You are the lead buyer for a large healthcare organization in British Columbia and have been tasked with leading the procurement of a new CAT Scan Machine. Outline four steps to prepare and call a...
A circuit is composed of a coil having N turns and area A. Its leads are connected to a combination of resistors, as shown in (Figure 1). All three resistors have the same resistance R. The coil is...
When an employer denies an employee (or a group of employees) his or her full employment opportunity based on the racial bias of customers, is the employer violating the employees civil rights?
An item of depreciable machinery was acquired on 1 July 2009 for $120,000 by cash It is expected to have a useful life of 10 years and zero salvage value On 1 July 2012, it was decided to revalue the...
The comparative marketable securities and inventory balances for a company are provided below. Based on this information, what is the amount and percentage of increase or decrease that would be shown...
Equation tells us that to reduce a current account deficit a country must increase its private saving, reduce domestic investment, or cut its government budget deficit. Nowadays, some people...
Equation tells us that to reduce a current account deficit a country must increase its private saving, reduce domestic investment, or cut its government budget deficit. Nowadays, some people...
Explain how each of the following transactions generates two entriesa credit and a debitin the American balance of payments accounts, and describe how each entry would be classified: a. An American...
Marie Forleo, a marketing trainer and host of MarieTV, presents the eight tips for genuine networking. Do you agree or disagree with her suggestions? Discuss how this information is useful to you and...
Identify all relevant costs or revenue that are applicable to production- constrained decisions 1. Contributions margin of product 2. Interference with other production 3. Contribution margin per...
Gammaro Compary manufactures wallets from fabric. In 2 0 1 9 , Gammaro made 2 , 1 5 0 , 0 0 0 wallets using 1 , 2 5 0 , 0 0 0 yards of fabric. In 2 0 1 9 , Gammaro has capacity to make 2 , 8 0 0 , 0...

Explain why contractionary fiscal policy is more likely to decrease Real GDP in a closed economy than

Question:

Step by Step Answer:

The reduction in government spending reduces aggregate demand ...View the full answer

Economics

Students also viewed these Economics questions