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State whether the following will increase, decrease, or have no effect on measured GDP in the short run. Explain your answers: a. Humbert decides to
State whether the following will increase, decrease, or have no effect on measured GDP in the short run. Explain your answers: a. Humbert decides to shovel the snow as a favor for his elderly neighbor. b. The government increases spending without increasing taxes. c. Marijuana sales are legalized. Cheech begins selling pot openly and reporting his income. d. A new trade agreement results in a country increasing its exports without significantly increasing imports. e. The EPA shuts down Toxic Corp. for repeated environmental violations. f. In order to save money, Mortimer cancels his cleaning service and begins cleaning his own home. Assume the government increases subsidies for scientific research. a. Why might this policy increase long run economic growth? (This is probably more likely.) b. Why might this policy decrease long run economic growth
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