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alexandr1967 [171]
3 years ago
6

Robert Necco and Nelson Packard are economists at Economic Research Associates. ERA asks Necco and Packard for their opinions ab

out the effects of fiscal policy on real GDP for an economy currently experiencing a recession. Necco states that real GDP is likely to increase if both government spending and taxes are increased by the same amount. Packard states that if both government spending and taxes are increased by the same amount, there is no expected net effect on real GDP.
Regarding the statements made by Necco and Packard:
Necco Packard
A) Correct Correct
B) Correct Incorrect
C) Incorrect Incorrect
D) Incorrect Correct
Business
1 answer:
Lorico [155]3 years ago
8 0

Answer: B) Correct Incorrect

Explanation:

Whilst it was generally believed at some point that raising taxes and Government Spending by the same amount would have no effect, research has disproven this thought.

This is because it was shown that an increase in Government Spending leads to a larger increase in GDP than an increase in taxes reduces it.

This is because when the Government spends money, the Multiplier effect of Government Spending is always 1 more than that of the Taxes therefore raising taxes and spending by the same amounts still increases the Real GDP because Government Spending will create more income than taxes will take.

Necco is right, Packard is wrong.

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If a nation exports much of its output but imports little, will it be better or worse off? How about the reverse? What if a nati
Angelina_Jolie [31]
This is the situation of countries like Germany,

Where exports > imports...
The results is definitely good for the country. It will increase its trade surplus. This allow the country to amassed a huge number of foreign reserves which they can use to invest abroad..

While countries that import > exports, will experienced trade loss/deficit (just think it like the reverse)
8 0
3 years ago
How does implementing change affect strategic relationship management?
HACTEHA [7]

Answer:

A it upsets the balance

Explanation:

4 0
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You purchased five call option contracts with a strike price of $22.50 and an option premium of $.48. You held the option until
Wittaler [7]

Answer:

You lose your premium <em>$</em><em>240</em> down the drain.

Explanation:

-$240

Total Loss= 5*(100 x -$0.48)= -$240

Good luck mate! Options are very risky.

7 0
2 years ago
In a command economy, the goods and services that a country produces, the quantity in which they are produced, and the prices at
IrinaK [193]

Answer:

In a command economy, the goods and services that a country produces, the quantity in which they are produced, and the prices at which they are sold are planned by the government

The government plans the goods and services that a country produces, the quantity in which they are produced, and the price at which they are sold.

8 0
2 years ago
Bob’s employer covers 23% of his family’s annual health insurance premium. The balance of the premium is deducted in equal a
Aliun [14]

Based on the amount covered and the amount withdrawn, we can calculate that Boba's annual health insurance premium is<u> $6,256.88</u>

First find the total amount withheld from Boba in a year:

= 185.30 x 26

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Boba's employer covers 23% of his insurance so the amount withdrawn is 77% of the insurance.

The annual insurance is therefore:

<em>= Boba's share / Percentage paid by Boba</em>

= 4,817.80 / 77%

= $6,256.88

In conclusion, the annual premium is $6,256.88

<em>Find out more about </em><em>insurance premiums </em><em>at brainly.com/question/3757928. </em>

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2 years ago
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