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makvit [3.9K]
4 years ago
14

A $1 increase in government spending on goods and services will have a greater impact on the equilibrium GDP than will a $1 decl

ine in taxes because
Business
1 answer:
ollegr [7]4 years ago
7 0

Answer:

Government spending creates employment or it employment-intensive as compared to a decline in tax.

Explanation:

Government spending is more employment-intensive as compared to tax. When the government dumps money into the economy then the economy becomes richer than the injected money because it creates employment and increases the aggregate demand. Moreover, GDP will increase more because it depends on the MPC and spending multiplier. While the tax decline is saving intensive when a tax falls then people try to save more.  

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Answer:

decrease; increase

Explanation:

This is the case because as the central bank of that country lowers interest rate, with the goal recovering from the recession, but because the interest rate is low, the value of the country's currency (exchange rate) will decrease as a result of low investment spending.

When this occurs there will be an increase in net exports as a result of foreign demand because the prices of the country's export is now lower.

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B. reference library

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3 years ago
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Whenever marginal cost is greater than average total cost, A. average total cost is rising. B. marginal cost is falling. C. aver
Damm [24]

Answer:

A. average total cost is rising.

Explanation:

Whenever marginal cost is more than average cost it means it costs more to produce a unit now compared to the average cost of the previous units. Lets assume that a company produces 3 units  of a good.

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The second unit costs $2

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Average cost= (1+2+3+4)/4=10/4=2.5

Here we see that the average cost increased from 2 to 2.5 because marginal cost was greater than average cost.

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