All categories

4 years ago

Explain how aggregate demand changes when the government increases taxes by $100 billion. Aggregate demand ______.

Business

1 answer:

Mrac [35]4 years ago

4 0

Answer: D. decreases by less than $100 billion because the tax multiplier is negative

Explanation:

If the Government were to increase taxes then it would reduce the amount of money for spending (disposable income) that people have to be able to buy goods and services.

As a result they will buy less goods and services but this would be less than the $100 billion tax imposed on them because the effect of the tax multiplier is negative.

Tax Multiplier = -Marginal Propensity to Consume / (1 - MPC)

You might be interested in

Posted this question already and no response.

Dvinal [7]

Answer: A medium of exchange

Explanation:

8 0

3 years ago

What is marketing social?

Luden [163]

Explanation:

Social marketing is an approach used to develop activities aimed at changing or maintaining people’s behaviour for the benefit of individuals and society as a whole.

5 0

3 years ago

Given a prior forecast demand value of 230, a related actual demand value of 250, and a smoothing constant alpha of 0.1, what is

mojhsa [17]

Answer:

232

Explanation:

Calculation for what is the exponential smoothing forecast value for the following period

Exponential smoothing forecast value=230 + 0.1 * (250-230)

Exponential smoothing forecast value=230 + 0.1*20

Exponential smoothing forecast value = 232

Therefore the exponential smoothing forecast value for the following period will be 232

3 0

3 years ago

Carrvour Inc. is a company that manufactures steel, cement, cars, and consumer electronics under a single brand. The top managem

CaHeK987 [17]

Answer:

D) Corporate strategy

Explanation:

Corporate strategy is an strategic plan used to define the vision and direction of an organization, its goals and how they will be achieved. Is defined by highest manager hierarchically.

I hope you find this information useful and interesting! Good luck!

6 0

3 years ago

Remembering that demand elasticity is defined as the percentage change in quantity divided by the percentage change in price, if

alina1380 [7]

Answer:

4. increase

Explanation:

If price decreases and, in percentage terms, quantity rises more than price, it means demand is elastic.

For example ,if price falls by 1% and quantity demanded increases by 5%, total revenue would definitely increase.

I hope my answer helps you

4 0

3 years ago

Explain how aggregate demand changes when the government increases taxes by​ $100 billion. Aggregate demand​ ______.

Explain how aggregate demand changes when the government increases taxes by $100 billion. Aggregate demand ______.