State what fiscal policy you would recommend to eliminate the inflationary or recessionary gap in the following
Question:
a. Recessionary gap of $800; mpe = .5.
b. Inflationary gap of $1,500; mpe = .8.
c. Real GDP = $10,200; potential GDP = $9,000; mpe = .2.
d. Real GDP = $40,500; potential GDP = $42,000; mpe = .7.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 62% (16 reviews)
a If the mpe is 5 the multiplier is 2 Because there is a recessionary gap ...View the full answer
Answered By
Carly Cimino
As a tutor, my focus is to help communicate and break down difficult concepts in a way that allows students greater accessibility and comprehension to their course material. I love helping others develop a sense of personal confidence and curiosity, and I'm looking forward to the chance to interact and work with you professionally and better your academic grades.
4.30+
12+ Reviews
21+ Question Solved
Related Book For
Question Posted:
Students also viewed these Economics questions
-
Identify the internal control weaknesses in each of the following situations, and indicate what change or changes you would recommend to eliminate the weaknesses: 1. The internal audit staff of...
-
You are being interviewed for a job as a portfolio manager at an investment counseling partnership. As part of the interview, you are asked to demonstrate your ability to develop investment portfolio...
-
Lassonde Industries Inc. manufactures and sells fruit and vegetable juices and drinks, as well as specialty food products under such brand names as Oasis, Fruité, Fairlee, and Canadian...
-
How does unemployment behave over the business cycle?
-
The Luxnet division of the WSH Corporation publishes college textbooks. Luxnet employs about 20 senior editors, each of whom manages the production of several different textbooks. In the production...
-
Jasmine owned rental real estate that she sold to her tenant in an installment sale. Jasmine acquired the property in 2004 for $400,000; took $178,000 of depreciation on it; and sold it for $210,000,...
-
Product costs, activity-based costing systems. Executive Power (EP) manufactures and sells computers and computer peripherals to several nationwide retail chains. Johan Farnham is the manager of the...
-
L. Bowers and V. Lipscomb are partners in Elegant Event Consultants. Bowers and Lipscomb share income equally. M. Ortiz will be admitted to the partnership. Prior to the admission, equipment was...
-
Question 6 2 points In order for you to be indifferent between the after tax returns on a corporate bond paying and a tax-exempt municipal bond paying what would be the tax rate? DA 27.1% 19 M O222...
-
Chong is starting a winery business in his home town of Kelowna, British Columbia. Chong needs money to get started. He has a permanent policy on his own life with a cash surrender value (CSV) of $1...
-
Congratulations yet again. You've just been appointed chairman to the Council of Economic Advisers in Textland. You must rely on your research assistant for the specific numbers. He says income is...
-
Congratulations one more time. You have been appointed chair of Economic Advisers in Fantasyland. Income is currently $600,000, unemployment is 5 percent, and there are signs of coming inflation. You...
-
Assuming that you know (n), explain how to compute a 1 mod n for any a * n using the procedure MODULAR-EXPONENTIATION.
-
When a supersonic airflow, \(M=1.8\), passes through a normal shockwave under sea level conditions, what are the values of the stagnation pressure before and after the normal shockwave?
-
Eastern University, located in central Canada, prides itself on providing faculty and staff with a competitive compensation package. One aspect of this package is a tuition benefit of \($4,000\) per...
-
What is the formula for calculating return on investment (ROI)?
-
Air enters a 5.5-cm-diameter adiabatic duct with inlet conditions of \(\mathrm{Ma}_{1}=2.2, T_{1}=250 \mathrm{~K}\), and \(P_{1}=60 \mathrm{kPa}\), and exits at a Mach number of...
-
At the various activity levels shown, Taylor Company incurred the following costs. Required: Identify each of these costs as fixed, variable, or mixed. Units sold 20 40 60 80 100 a. Total salary cost...
-
A random sample of the luggage of 30 passengers of Fly Me Airlines finds that the mean weight of the luggage is 47 lb with a standard deviation of 8 lb. Construct a 90 % confidence interval for the...
-
Some people argue that the internal control requirements of the Sarbanes-Oxley Act (SOX) put U.S. companies at a competitive disadvantage to companies outside the United States. Discuss the...
-
Bell Company purchased 60 percent ownership of Troll Corporation on January 1, 20X1, for \(\$ 83,000\). On that date, Troll reported common stock outstanding of \(\$ 100,000\) and retained earnings...
-
Say that 90 percent of the people in a market demonstrate the endowment effect and 10 percent are rational. Say that, initially, all people have equal wealth. a. How would you expect the wealth...
-
Suppose the two-thirds game described in the chapter were changed to the average game, so that the class had to guess a number between 0 and 100, and the person who wins is the person who guesses...
-
In 1970 economist Martin Shubik proposed a game that involved auctioning off a one-dollar bill with the following rules: 1. The highest bidder wins the dollar bill and pays his bid. 2. The...
-
There are three basic approaches to CVP analysis - equation approach, contribution margin approach, and the contribution ratio margin approach. How are these approaches similar and how do they...
-
There are six farmers in Great Britain with access to government land to graze their cows for free. They all must share the land. Each farmer has an individual incentive to put as many of his cows on...
-
Describe several common sources of yardstick data that you can use as bases for developing forecast assumptions
Study smarter with the SolutionInn App