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deff fn [24]
3 years ago
6

Suppose the federal government increases spending without also increasing taxes In a closed economy' setting this policy will (1

) - short run. - real GDP and (2) — - the price level in the In an open economy setting, the effect of government fiscal policies will (3) - . For example, in an open economy, expansionary fiscal policies affect interest rates and also exchange rates in the same direction and the changes in the latter create a (4) - crowding out effect 1: Define Closed economy An economy that has no interactions in trade or finance with other countries. 2: Define Open economy An economy that has interactions in trade or finance with other countries. (1) reduce increase not affect (2) not affect O raise Olower (3) remain intact be dampened be amplified (4) similar smaller larger
Business
1 answer:
Leona [35]3 years ago
7 0

Answer:

idk

Explanation:

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COMMON MEASURE OF WHAT SOMETHING IS WORTH OR WHAT SOMETHING COSTS
Anton [14]

Answer:

price. is the answere I am almost certain

8 0
3 years ago
The large, heterogeneous market from which specific submarkets (market segments) are drawn is called the aggregate market.
Marysya12 [62]

Answer:

False

Explanation:

The large heterogeneous market is a market structure where diverse commodities and services are available to the customers. Overall, large heterogeneous markets are known as 'Mass markets' or ' Total product market'. This market satisfies customer needs due to mass production of distinctive goods. In the large heterogeneous market, customers have different perspectives, wants, choices and nature etc.

8 0
3 years ago
Consider a business cycle theory that combines the classical âIS-LM model with the assumption that temporary changes in governme
docker41 [41]

Answer: The answer is given below

Explanation:

The IS-LM model, simply is an acronym which represents "investment-savings" and the "liquidity preference of money supply". The model indicates the interaction between market for economic goods and the loanable funds market which is also called the money market.

The variables are explained below:

a. Employment: A rise in the spending expenditure will result into an increase in the current or future taxes which will have an effect on the workers by making them poorer and therefore making them offer their services to the labor market. This will lead to a rise in labor supply.

b. The real wage: Due to the increase in labor supply, the real wage will reduce because the supply of labor will be more than the demand.

c. Average labor productivity: The marginal productivity of labor or production function is not influenced by fiscal policy changes.

d. Investment: There will be a leftward upward shift of the LM curve. Due to increase in price of goods and services, and the fall in real money supply, the interest rate will rise therefore making investment to reduce.

e. The price level: Demand for output is more than the full employment level of output. This will bring about increase in price.

5 0
3 years ago
If a firm is deciding upon the acceptance of a project with a value of $10,000, and if the client has a good credit history, the
AnnZ [28]

Answer:

FALSE

Explanation:

The Decision-Making Process includes Identifying the need for a decision, Determining the outcome of the decision, Identifying all alternative actions, the benefits and consequences of each and Making and Evaluating the decision.

Decision-Making Tools includes the use of decision-making grid to differenciate or separates factors of decision to be made, the use of Gantt chart to shows phases of project to completion and Information technology and others.

The grid chart shows the relationship between input and output documents.

3 0
2 years ago
Suppose OPEC succeeds in raising world oil prices by 300 percent. This price increase causes inventors to look at alternative so
Sphinxa [80]

Answer:

A. Substitution bias and the introduction of new goods.

Explanation:

The Consumer price index is a measure of the overall cost of goods and services (usually measured in fixed basket), purchased by a consumer in a year as compared to previous years. It gives the government and economists an idea of the cost of living of individuals in a nation. Some problems of the CPI include

1. Substitution Bias: The CPI assumes that prices of goods and services change in a fixed way as the years go by. It also does not consider the fact that sometimes some customers have preference for expensive items compare with the less expensive items. This is reflected in the OPEC case where it is automatically assumed that customers would prefer the cheaper hydrogen-powered engines to the gasoline engines.

2. Introduction of New goods: The CPI fails to recognize that new goods would enter a market because the CPI assumes a fixed basket of items and products. The introduction of new goods would affect comparisons to previous years' CPIs. The new good invented in the above case is the hydrogen-powered engine.

8 0
3 years ago
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