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IgorLugansk [536]
2 years ago
13

The government can use _____________ in the form of ____________________ to increase the level of aggregate demand in the econom

y.
Business
1 answer:
Naily [24]2 years ago
7 0

The government can use <u>an expansionary fiscal policy </u>  in the form of <u>an increase in government spending </u> to increase the level of aggregate demand in the economy.

<h3>How does Government Spending Affect the Economy ?</h3>

There is a high possibility that the rise in taxes will negate the impact of rising government spending which would leave Aggregate Demand (AD) unchanged. However, it is possible that increased spending and rise in tax could lead to an increase in GDP.

In a recession, consumers may reduce spending leading to an increase in private sector saving. Therefore a rise in taxes may not reduce spending as much as usual.

The increased government spending may create a multiplier effect. If the government spending causes the unemployed to gain jobs then they will have more income to spend leading to a further increase in aggregate demand. In these situations of spare capacity in the economy, the government spending may cause a bigger final increase in GDP than the initial injection.

However, if the economy is at full capacity, the increase in government spending would tend to crowd out the private sector leading to no net increase in Aggregate demand from switching from private sector spending to government sector spending.

<h3>Which type of policy does the governments adopt to increase the aggregate demand in the economy?</h3>

Expansionary fiscal policy increases the level of aggregate demand, either through increases in government spending or through reductions in taxes. Expansionary fiscal policy is most appropriate when an economy is in recession and producing below its potential GDP.

Therefore, we can conclude that the correct option is C.

Your question is incomplete, but most probably your full question was:

The government can use _____________ in the form of ____________________ to increase the level of aggregate demand in the economy.

A. a contractionary fiscal policy; a reduction in taxes

B. an expansionary fiscal policy; an increase in corporate taxes

C. an expansionary fiscal policy; an increase in government spending

D. a contractionary fiscal policy; an increase in taxes

Learn more about Expansionary Fiscal Policy on:

brainly.com/question/25589179

#SPJ4

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A research _______ is a general plan for implementing the research strategy.
siniylev [52]
Is there answer choices if not
I think it is Design.
8 0
2 years ago
To get the benefits of vertical integration without the accompanying risks, companies can ______. (Check all that apply.)
Ganezh [65]

Companies can do the listed in order to get the benefits of vertical integration without the accompanying risksL

  • choose strategic outsourcing
  • use taper integration

<h3>What is a vertical integration?</h3>

This refers to a business strategy that allows a firm company to alter or design its operations by taking direct ownership of various stages of its production process rather than just relying fully on an external contractors or suppliers.

The risk associated with a vertical integration that could be an inability to cope with new technologies because they evolve quickly can be correct by choosing a strategic outsourcing or using a taper integration.

Therefore. the Option A & B is correct.

Missing options "

-choose strategic outsourcing

-use taper integration

-control every element of the industry value chain

-opt to become fully vertically integrated"

Read more about vertical integration

brainly.com/question/11773609

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7 0
1 year ago
Why are suppliers in purely competitive markets efficient
Lisa [10]

Answer: because it forces firms to achieve maximum efficiency (productive and allocative efficiency). Requires that goods be produced in the least costly way. Firms are forced to produce at the minimum average total cost in the long run.

Explanation:

8 0
3 years ago
Previn Brothers Inc. purchased land at a price of $26300. Closing costs were $1300. An old building was removed at a cost of $10
Aloiza [94]

Answer:

$38,000

Explanation:

The computation of the cost of the land is shown below:

= Purchase price of land + closing cost + removal cost of an old building

= $26,300 + $1,300 + $10,400

= $38,000

In order to find out the cost of the land, we simply added the purchase value of land, its closing cost and the removal cost of an old building

3 0
2 years ago
Project Y costs $50,000, its expected cash inflows are as follows-- year 1: $19,000; year 2: $20,000; year 3: $18,000; year 4: $
Citrus2011 [14]

Answer:

a. $40,001.70

b. 30.19 %

c. 18,01% .

d. 2 years and 7 months

e. 3 years

Explanation:

Calculation of NPV using a financial calculator :

-$50,000    CFj

$19,000      CFj

$20,000     CFj

$18,000      CFj

$19,000      CFj

$20,000     CFj

$17,000      CFj

i/yr                7%

Shift NPV   $40,001.70

Calculation of IRR using a financial calculator :

-$50,000    CFj

$19,000      CFj

$20,000     CFj

$18,000      CFj

$19,000      CFj

$20,000     CFj

$17,000      CFj

Shift IRR      30.19 %

Calculation of MIIR :

<em>The First Step is to Calculate the Terminal Value at end of year 6. </em>

Terminal Value (FV) = Sum of (PV x (1 + r) ^ 6 - n)

                                 =$19,000 x (1.07) ^ 5 + $20,000 x (1.07) ^ 4 + $18,000 x (1.07) ^ 3 + $19,000 x (1.07) ^ 2 + $20,000 x (1.07) ^ 1 + $17,000 x (1.07) ^ 0

                                 = $26,648.48 + $26,215.92 + $22,050.77 + $21,753.10 +  $21,400 + $17,000

                                 = $135,068.27

<em>The Next Step is to Calculate the MIRR using a Financial Calculator : </em>

-$50,000 CFj

0          CFj

0            CFj

0          CFj

0          CFj

0                      CFj

$135,068.27   CFj

Shift IRR/Yr 18,01%

Therefore, the MIRR is 18,01% .

Calculation of the Payback Period :

$50,000 = Year 1 ($19,000) + Year 2 ($20,000) + $11,000 / $18,000

               = 2 years and 7 months

Calculation of the project's Discounted Payback :

$50,000 = $19,000 / (1.07)^1 + $20,000 / (1.07)^2 + $18,000/ (1.07)^3 + $19,000/ (1.07)^4

              = Year 1 ($17,757.01) + Year 2 ($17,468.77) + Year 3 ($14,693.36) + $80.83 / $14,495

              = 3 years

7 0
3 years ago
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