Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 12, 2024

Suppose as part of Demand-side Contractionary Policy Government spending decreases by $100 billion and the marginal propensity to consume is 0.5. Assuming no taxes and

Suppose as part of Demand-side Contractionary Policy Government spending decreases by $100 billion and the marginal propensity to consume is 0.5. Assuming no taxes and no trade, by how much will real GDP change?

A. $500 billion decrease.

B. $200 billion decrease.

C. $800 billion decrease.

D. $400 billion increase.

E. $100 billion decrease.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managing in a Global Economy Demystifying International Macroeconomics

Authors: John E. Marthinsen

2nd edition

128505542X, 978-1305176157, 1305176154, 978-1285055428

More Books

Students also viewed these Economics questions

Question

★★★★★

A mass of 1.5 kg of air at 120 kPa and 24C is contained in a gas-tight, frictionless piston cylinder device. The air is now compressed to a final pressure of 600 kPa. During the process, heat is...

Answered: 1 week ago

Question

★★★★★

Under Rule 203, is it ever acceptable for financial statements to NOT conform to GAAP?

Answered: 1 week ago

Question

★★★★★

3. Encourage students to write in journals about their own feelings. Protect the privacy of these writings (see trust above).

Answered: 1 week ago

Question

★★★★★

Landry's Tool Supply Corporation is considering purchasing a machine that costs $100,000 and will produce annual cash flows of $40,000 for five years. The machine is expected to be sold at the end of...

Answered: 1 week ago

Question

★★★★★

Write a note on Quality circles.

Answered: 1 week ago

Question

★★★★★

. Calculate the ending balances in the T-Accounts then insert those balances in the Unadjusted Trial Balance. Cash SMART TOUCH LEARNING Unadjusted Trial Balance Nov. 1 1,200 December 31, 2016 Nov....

Answered: 1 week ago

Question

★★★★★

Manager T. C. Downs of Plum Engines, a producer of lawn mowers and leaf blowers, must develop an aggregate plan given the forecast for engine demand shown in the table. The department has a normal...

Answered: 1 week ago

Question

★★★★★

Case study on The Toronto Ultimate Club By reading this recommendation 3. Elaborate on what it's trying to say. Recommendation 3 : TUC will hire an additional employee to assist Jason Robinson,...

Answered: 1 week ago

Question

★★★★★

The goal of this lab is to segment a given network address using VLSM (Variable Length Subnet Mask). After completing this lab, you will be able to: Calculate subnets Materials Required This lab...

Answered: 1 week ago

Question

★★★★★

4. A round A36 steel test specimen has a diameter of do of 22mm and a gauge length of Lo 175mm. Take Oy = 250 MPa. (20 pts) a] If a force of 70 kN elongates the length by 1mm, what is the engineering...

Answered: 1 week ago

Question

★★★★★

which of the following describe items that systems engineers should consider regarding contracting? Select three that apply. They should focus exclusively on contract pricing since past performance...

Answered: 1 week ago

Question

★★★★★

Yoshi Company completed the following transactions and events involving its delivery trucks. Year 1 January 1 Paid $ 2 0 , 5 1 5 cash plus $ 1 , 4 8 5 in sales tax for a new delivery truck estimated...

Answered: 1 week ago

Question

★★★★★

Does this future have a sound, an image, a taste or a smell that you can evoke here and now?

Answered: 1 week ago

Question

★★★★★

2. In this chapter, the reader should reflect on the following concepts: benchmark-ing, competence development, thought dispositions, identity and perception.

Answered: 1 week ago

Question

★★★★★

Is it necessary to change something in your everyday life in order for you to achieve the goal?

Answered: 1 week ago

Previous Question Next Question