The chapter says that budget deficits reduce the income of future generations but can boost output and

Question:

The chapter says that budget deficits reduce the income of future generations but can boost output and income during a recession. Explain how both of these statements can be true

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

Step by Step Answer:

Related Book For book-img-for-question

Principles of economics

ISBN: 978-0538453042

6th Edition

Authors: N. Gregory Mankiw

See More Books

Question Posted: Dec 14, 2012 06:25 AM

See More Questions

How do automatic stabilizers affect budget deficits and surpluses? How would automatic stabilizers be affected by an annually balanced budget rule?
Explain how variable costing income statements can be reconciled to absorption costing income statements.
Explain how reducing a government budget deficit makes future generations better off. What fiscal policy might improve the lives of future generations more than reducing a government budget deficit?
Assume that the duration of human pregnancies can be described by a Normal model with mean 266 days and standard deviation 16 days. a) What percentage of pregnancies should last between 270 and 280...
Here is a model of some kinds of learning The learner starts in an undecided state sU. Eventually the learner has to decide to do either response A (that is, end in state sA) or response B (ending in...
How successful goal setting (including management by objectives) is as an applied technique for improving motivation and performance
Open the data set, German, which is provided on the textbook website. The data set consists of 20 predictors, both continuous and categorical, and a single response variable, indicating whether the...
Common-size and trend percents for Aziz Companys sales, cost of goods sold, and expenses follow. Determine whether net income increased, decreased, or remained unchanged in this three-yearperiod....
lese, Intermediate Accoanting 3se 231/37 2/31/18
The Foxridge Investment Group buys and sells rental income properties in southwest Virginia. Bill Hunter, president of Foxridge, has asked for your assistance in analyzing a small apartment building...
Explain how each of the following policies redistributes income across generations. Is the redistribution from young to old or from old to young? a. An increase in the budget deficit b. More generous...
What is the fundamental trade-off that society faces if it chooses to save more? How might the government increase national saving?
Brainstorm with your team members about what types of output are most appropriate for a variety of executives and high-level managers of Dizzyland, a large theme park in Florida. Include a list of...
You are the cost accountant of an engineering concern which has three departments - preparation, machining and assembly. The budgeted direct labour hours for the workshops are 8,000, 12,000 and...
What alternative to fostering fun and enjoyment at work do you think might have worked for Zappos?
Using the techniques of dimensional analysis, and assuming that experimentation shows the dimensionless number to be 1, derive the following equation: E v = Job card two The results of an ultrasonic...
Given the historical cost of product Carla Vista is $13, the selling price of product Carla Vista is $15, costs to sell product Carla Vista are $3, the replacement cost for product Carla Vista is...
What causes of outliers in statistics and when I create a boxplot why do I not see the outliers. What steps are to take in creating a boxplot?
Xia Corporation is a company whose sole assets are $100,000 in cash and three projects that it will undertake. The projects are risk-free and have the following cash flows: Xia plans to invest any...
Do public and private companies follow the same set of accounting rules? Explain.
Describe how companies in global industries pursue competitive advantage.
If a nations currency doubles in value on foreign exchange markets, the currency is said to _________, reflecting a change in the _________ exchange rate. a. appreciate; nominal b. appreciate; real...
If the value of a nations imports exceeds the value of its exports, which of the following is NOT true? a. Net exports are negative. b. GDP is less than the sum of consumption, investment, and...
In an open economy, national saving equals domestic investment a. plus the governments budget deficit. b. minus the net exports of goods and services. c. plus the net outflow of capital. d. minus...
Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. The company has two manufacturing departments --Molding and Fabrication. It started, completed, and...
Horizontal Analysis The comparative accounts payable and long-term debt balances of a company are provided below. Current Year Previous Year Accounts payable $47,286 $63,900 Long-term debt 85,492...
On January 1, Year 1, Price Company issued $140,000 of five-year, 7 percent bonds at 97. Interest is payable annually on December 31. The discount is amortized using the straight-line method. Record...

The chapter says that budget deficits reduce the income of future generations but can boost output and

Question:

Step by Step Answer:

In a recession the government can use a budget deficit to increase aggregate demand thus boost...View the full answer

Principles of economics

Students also viewed these Economics questions