The multiplier effect occurs when an initial increase (or decrease) in autonomous expenditure produces a greater increase (or decrease) in real GDP than the initial change.

In which type of discretionary fiscal policy does the multiplier play a role?
a. government spending changes only
b. both government spending changes and tax changes
c. neither government spending changes nor tax changes
d. tax changes only

Assume a marginal propensity to consume (MPC) of 0.5.

Which discretionary fiscal policy would have a more pronounced impact on the economy?
a. A 800 billion dollar increase in government spending, or a 800 billion dollar tax cut, would both have an equal impact on the economy.
b. A 800 billion dollar tax cut would have a more pronounced impact on the economy.
c. A 800 billion dollar increase in government spending would have a more pronounced impact on the economy.

Answers

Answer 1

Answer:

- both government spending changes and tax changes

- A 800 billion dollar increase in government spending would have a more pronounced impact on the economy

Explanation:

The multiplier plays a role in both government spending changes and tax changes. The multiplier depends on the MPC.

Multiplier = 1 / (1 − MPC)

If the government increases spending, the money spent will travel through the economy multiple times: once when the government spends the money and again as inviduals and businesses spend the money over and over. The amount that is spent in each round depends on the MPC. The same multiplier effect applies, for example, if the government cuts taxes.

The increase in government spending will have a larger impact on the economy. With government spending, the amount of increased spending is multiplied by the multiplier to figure out how much total economic impact the policy will have.

With a tax cut, some of the initial tax cut will be saved right away and therefore taken out of the spending cycle of the economy. Given the MPC of 0.5 in this problem, half of the tax cut will saved, leaving only the other half to travel through the economy according to the multiplier. Therefore, a tax cut has a less pronounced impact on an economy than government spending.


Related Questions

Which statements describe characteristics of civil law cases? Check all that apply. Civil cases can involve people, organizations, or both. A civil case often results in jail time for the accused person. The case begins when a defendant is accused of a crime. Some civil law cases may be considered criminal law cases, too. A plaintiff is on one side of the case, and a defendant is on the other.

Answers

Answer:

A, civil cases can involve people, orgaizations, or both

D, Some civil law cases may be considered criminal law cases, too

E, A plaintiff is on onw side of the case, and a defendant is on the other

Explanation:

How does a resource change if it is considered to be scarce?

Answers

Answer:

Explanation:

Because the more resources a company or someone wants it will eventally be limited or run out, as you used up all the resources.


1. What was the goal of most countries during this time period?

Answers

reduce pollution, and use renewable natural resources

Explain how speciation occurs and provide some examples

Answers

Answer:

The definition of speciation is the formation of new species throught the course of evolution. There are many different ways it can occur.

Geographic Isolation - Seperating two species, so that they are in different habitats. Over time these species get acquainted to heir habitats and start evolving to fit in it. Suppose there is a big lake where a species of fish lives, and the lake gets seperated. One side of the lake prefers dark fish and the other prefers lighter fish. On one side, dark fish becomes more prevalent and light fish becomes more prevalent on the ohter side. Soon, this species will split into two species, based on how different they are on the color of their scales.Temporal Isolation - This is when species mate a different times of the year. One example is if you have a bunch of frogs. Most of them mate in the summer. All of a sudden, some of them mate in the Spring as well. Soon these frogs mate a different times and become different species as they don't mate at the same time. The frogs that mate at differnt times can no longer, be the same species.Behavioral - This is when species have different mating calls or courthsips. Lets say you have birds that sing a specific tune to mate and then one day, another group fo birds in the same species sing a different tune. Soon, these two bird species will be different as they sing different tunes and can no longer mate with each other. If they can't mate with each other, they are no longer the same species.

The accompanying graph illustrates an economy in long-run equilibrium which is denoted by point ELR.

Suppose a new technology is discovered which increases productivity. In the graph, demonstrate how the economy moves to its new long-run equilibrium by shifting the appropriate curves and placing point ELR at the new long-run equilibrium.

In the long run, the aggregate price level ______________ and real GDP (aggregate output) ______________.

WORD BANK
increases
decreases
does not change

Answers

Answer:

*see image*

Explanation:

When there is a change in the potential for an economy to produce goods, this will change long-run aggregate supply (LRAS). In this case, there is an increase in productivity. This increase in productivity leads to an increase in LRAS. The LRAS curve shifts out. Firms will respond either with new entry or increasing each firm's short run supply. As a result, the short run aggregate supply (SRAS) curve increases until it crosses LRAS at the same point as aggregate demand (AD) crosses LRAS.

Because there is an improvement in technology that has raised factor productivity, nation can produce more with same resources so LRAS and SRAS shift to the right.

In the long run, the aggregate price level decreases, and real GDP increases.

Considering the heart-breaking news about educational field trip related accidents, are you in favor or disfavor in continuing this school activity? why?​

Answers

To make an argument for or against continuing educational field trips, in-depth research must be carried out, to generate greater consistency to the argument.

How to create an argument?

It is essential that your position against or in favor of a topic is formed from reliable sources, such as indexes and books, which generate greater reliability and persuasion about your point of view.

Therefore, if you are in favor of continuing educational trips, your argument may be that, in order to avoid accidents, compliance with safety regulations is necessary, and explain about the benefits of the activity.

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What is hierarchy of needs? Give definition in your own words

Answers

our actions are motivated by certain physiological needs.

how lack of responsible citizenship can lead to further cases of human rights violation within a community

Answers

The main way in which a lack of responsible citizenship can lead to further cases of human rights violation is a lack of accountability.

What is Responsible Citizenship?

This refers to the activity of citizens where they engage in acts or actions that helps their community and the government to make society better for everyone.

Hence, we can see that the lack of this in society, would lead to less accountability and would inevitably lead to further cases of human rights violations within the community.

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Americans have a disproportionate concept of crime rates. Their inflated fear of victimization constitutes a

Answers

The disproportionate concept of crimes that Americans have has inflated fear of victimization which is known as fight or flight

What is the fight or flight phrase about?

This is a term that is used to refer to the psychological response that people have to certain situations.

When confronted by threatening situations, the first response of some people may be to run. For others it may be to confront the issues head on.

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Which of these is true of global economic flows?

Answers

Answer:

i would have answered it, but if you check this please redo it so people know what your talking about

Explanation:

Advantages of living in big cities ​

Answers

Answer:

You will probably live closer to your job and closer to other places that will be more convienent than living in a rural area.

Explanation:

What did the southern states such as South Carolina still depend on for their economy after the civil war

Answers

Answer:

Sharecropping and tenant farming.

Explanation:

After the Civil War, sharecropping and tenant farming took the place of slavery and the plantation system in the South. Sharecropping and tenant farming were systems in which white landlords (often former plantation slaveowners) entered into contracts with impoverished farm laborers to work their lands.

examine the concept of the poor

Answers

Answer:

Although poverty is one of the most well-known and long-lasting circumstances in human history, it is a difficult idea to grasp. Some experts believe it is a reaction to the stress of poverty, while others believe it is a process of adjusting to poverty. There are several historical definitions, but they all relate to a lack of financial income or a reduced social position. Poverty is influenced by a variety of variables, including political, economic, social, and cultural pressures. The passage of time, which encompasses all of these elements in a very complicated manner, has consistently had the biggest impact on the evolving concept.

Explanation:

Directions: Read the following situations and answer the questions that
follow. Write your answers on a sheet of paper.
1. There is a group at work that often gossips about others on the job.
You like these people but don’t want to be a part of the gossip scene.
What will you do?
2. Your supervisor wants you to work overtime every week, but you have
other commitments outside of work. What will you do?
3. Your colleague in the company you are working has learned that the
manager’s brother has just been arrested for assault. He tends to
discuss this loudly wherever he is.
What should you do without creating any conflict with your colleague?

Answers

1. The ideal is not to engage in gossip at work, not expressing opinions about colleagues and not getting involved in meetings with non-professional matters.

2- The worker must be honest with his supervisors about his commitments outside of work, seeking a joint solution to the problem with weekly overtime.

3. In order not to create a conflict over an issue that you do not want to answer at work, you should be honest and politely ask that non-professional matters not be discussed in the workplace.

How to act ethically at work?

It is essential that the employee acts with respect for the values and individualities of other co-workers, adopting an honest and cordial attitude towards everyone and following the established rules of conduct.

Therefore, through ethics, an organization develops a stronger culture focused on personal development, motivation and collaboration.

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The aggregate demand and aggregate supply (AD‑AS) model shown depicts a hypothetical situation where a recent increase in expected income increases AD. The current AD (post adjustment) is depicted by curve AD1.

Please show what will happen to this economy next (ceteris paribus). Adjust only one of the curves in one direction. The original AD curve cannot be shifted.

Answers

Answer:

*see image*

Explanation:

The correct answer in this question is to shift the short‑run aggregate supply (SRAS) curve to the left. The new SRAS curve should meet with the AD1 curve and the long‑run aggregate supply (LRAS) curve all at the same point. The SRAS curve should not shift to the left farther than that.

In this example, the increase in expected income increased aggregate demand. The key to this problem is understanding that at the original AD curve, the economy was already at a long‑run, full employment equilibrium. So, this increase in expected income has increased output above the full employment level. After increase in aggregate demand (AD), the AD curve has shifted rightward to AD1, increasing both aggregate output and price level in short run.

This higher output is only temporary. It comes with increased prices, so workers and suppliers adjust their expectations to the higher price level. This decreases short‑run aggregate supply and shifts the SRAS curve to the left. The economy readjusts at the same full employment level of output, but at a much higher level of prices. Higher price level increases the cost of inputs, therefore raising production cost which makes firms reduce production and output. As a result, aggregate supply falls, shifting SRAS curve leftward to SRAS1, intersecting AD1 at the original aggregate output (potential GDP), but at a further higher price level as shown below.

The short-run aggregate supply (SRAS) curve should be moved to the left as the answer to this query. The long-run aggregate supply (LRAS) curve and the new SRAS curve should intersect at the same position. Beyond that, the SRAS curve shouldn't go further to the left.

In this instance, the rise in anticipated income raised total demand. The solution to this issue lies in realizing that the economy was already at a long-run, full employment equilibrium at the time of the original AD curve. As a result, output has increased above the threshold of full employment due to this increase in projected income.

After a rise in aggregate demand, the AD curve shifted rightward to AD1, which in the short term increased aggregate output and price level.

What is Aggregate Supply?

The aggregate supply (AS) or domestic final supply in economics refers to the entire amount of products and services that organizations in a national economy hope to sell over a timeframe.

It is the overall value of goods and services that companies in an economy are willing and able to supply for sale at a certain price point.

What is Aggregate Demand?

The overall demand for final goods and services in an economy at a certain period is known as aggregate demand (AD) or domestic final demand (DFD) in the field of macroeconomics.

Effective demand is a common name for it, however other times this term is used to make a distinction.

This is a country's demand for its gross domestic output. It details the volume of goods and services that will be bought at every price point. The aggregate demand is made up of investment, business and government expenditures, consumer spending, and net exports.

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How does war shape the development of civilizations


?

Answers

1. War fuels development of new technologies e.g. Nazi V2 rocket scientists employed by NASA for Apollo mission.

2. War redefines the work force, leading to development as different groups in civilisation come together in one common goal.

3. War also leads to greater unity and economic development in civilisation, e.g. European Union was created after ww2 to bring together countries so conflict of that scale would never occur, and war torn counties could develop together.

what do you do to protect the heritage in your community? write any one activity.​

Answers

Answer:

creating public awareness among the people about the importance Heritage.

what are factors that may contribute to the youth being hesitant to conduct themselves as responsible citizens​

Answers

According to the age of the youngsters, the social and cognitive development are the factors due to which they become hesitant to conduct themselves as responsible citizens.

Who are youngsters?

A youngster is a person who is elder than a child. it is the age span of 10 years to 16 years when an individual is considered a youngster.

Cognitive development is the phase in the life of a youngster where his/her mental development starts. It occurs in the phase of concrete operative in a youngster where the ages are from 7 years to 11 years. In the phase of cognitive development, the individual obtains social experiences and learns to adapt to the environment which is necessary for getting positive social attitudes.

Therefore, the youngsters become hesitant to consider themselves responsible citizens due to social and cognitive factors.

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Which statement best describes an advantage of indirect democracy over direct democracy?
A. It can be more responsive to citizens' interests.
B. It can help citizens feel more connected to government.
C. It can better reflect the democratic principle of majority rule.
D. It can make decision making more efficient.

Answers

Answer:

it would be A

Explanation:

What markets are likely to be attracted to travel on cargo ships?

Answers

Answer:

markets are likely to be attracted to travel on cargo ships? What about river cruising? Explain the reasons for your opinions.

Suppose that an economy consists of only two individuals. Jeremy has $1890 available to spend on goods. He decides to purchase $390 worth of produce from Krista in the current quarter. No other economic activity takes place during the current quarter. Using this information, answer the questions.

For the current quarter, what is the economy's income? $_____________
For the current quarter, what is the economy's expenditure? $_____________

In an economy, how are income and expenditure related?
a. Income is less than expenditure.
b. They are equal.
c. They are unrelated.
d. Income is greater than expenditure.

Answers

Answer:

Economy's income: $390

Economy's expenditure: $390

b. They are equal.

Explanation:

In an economy Income (Y) is the sum of Consumption or private expenditure (C), Investment (I), Government spending (G), and Net Exports (NX).

Y = C + I + G + NX

But as the economy consists only of 2 individuals, Investment (I), Government spending (G), and Net Exports (NX) are Zero. Therefore,

Y = C i.e. Income = Expenditure

In the above scenario, Jeremy spends $390 on produce from Krista. Jeremy's expenditure is equal to Krista's income which is $390. Under the assumptions in this scenario, the sum of all spending that occurs in the economy is exactly equal to the sum of all income that people receive.

In the question, Krista receives $390 in income from selling her produce to Jeremy. The $390 that Jeremy paid for the produce is the amount of expenditure for the economy. The $1890 Jeremy could have used is irrelevant since it is not used in the current quarter. The expenditure a buyer pays for a good or service is equal to the income the seller receives.

going to give brainliest Write a one-page summary of the checks and balances of the U.S. government. Use this chart and begin with the executive branch. Note the duties of each branch and how it would be impossible for each branch of government to have too much power.

Answers

Answer:

Explanation:

The Checks and Balances system provides each branch of government with individual powers to check the other branches and prevent any one branch from becoming too powerful. Checks and balances are principles of government under which separate branches are empowered to prevent actions by other branches and are induced to share power. Checks and balances are applied primarily in constitutional governments. The best example of checks and balances is that the president can veto any bill passed by Congress, but a two-thirds vote in Congress can override the veto. Other examples include: The House of Representatives has the sole power of impeachment, but the Senate has all power to try any impeachment.

What was the lifestyle of the Incas like? That is, how did the Incas live in South America?

Answers

Answer:

The Incas in their way of life, lived in huts made of stone and straw, which only had one room and no windows. The walls are painted in bright colors.

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Answer:

Daily life in the Inca empire was characterised by strong family relationships, agricultural labour, sometimes enforced state or military service for males, and occasional lighter moments of festivities to celebrate important life events in the community and highlights in the agricultural calendar.

What are the three things Ms. Gorgens says parents should do when considering whether to allow their child to play football?

Answers

The context clues show that the three things the three things that Ms. Gorgens says parents should do when considering whether to allow their child to play football include study up, suit up, ad speak up.

What are context clues?

It should be noted that context clues are the hints that are given in a literary work by the author.

In this case, the three things that Ms. Gorgens says parents should do when considering whether to allow their child to play football include study up, suit up, ad speak up.

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1. What is Ingenuity, and where is it located?
2. What is the importance of Jezero Crater?
3. Why is Ingenuity important to NASA?

Answers

1: Ingenuity is a small robotic aircraft/helicopter that was designed for mars

Discretionary spending is government spending that:

Answers

The discretionary spending of a government is the spending that needs to be authorized every year.

What is discretionary spending?

While this spending is not required by law, it is necessary to allow the government to meet its objectives of taking care of the people.

Because it is not required by law however, it needs to be authorized by the government's legislative branch every year in order for it to be spent. An example if the annual budget that Congress has to agree on.

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During the Constitutional Convention, small states did not want their representation based on
Which scenario is not guaranteed under the Articles of Confederation?

Answers

Answer:

a merchant

Explanation:

they can always use the same currency in Connecticut and Georgia

What makes a group a minority is that it is smaller in size

Answers

because a group of people whose practices, race, religion, ethnicity, or other characteristics are fewer in numbers than the main groups of those classifications.

According to the textbook, many Bible scholars believe that James, the half-brother of the Lord and a significant early Christian leader, is the most likely author of the book of James. true false

Answers

Answer:

True

Explanation:

The traditional author is held to be James, "a servant of God and brother of the Lord Jesus Christ". Like Hebrews, James is not so much a letter as an exhortation; the style of the Greek language-text makes it unlikely that it was actually written by James, the brother of Jesus.

"What does 'religion' mean in sociology?" from a sociological perspective

Answers

Religion from a Sociological Perspective. Religion refers to the set of ideas, attitudes, and practices that are associated with holy or spiritual matters. Religion, according to social theorist Émile Durkheim, is a "unified system of ideas and acts relevant to sacred things" (1915).

Religion serves a variety of purposes in society. These include (a) providing life meaning and purpose, (b) supporting social unity and stability, (c) acting as a social control agency, (d) fostering physical and psychological well-being, and (e) inspiring individuals to fight for good social change.

Religion is another example of a cultural universal, as it exists in some form or another in all communities. Sociologists can use functionalism, conflict theory, and interactionism to better comprehend religion.

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