Answer:
Explanation:
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Question
What are the steps an Involver follows for planning
Answer:
All other powers are reserved by the states under the tenth amendment. So in the USA, national government according to the constitution has the specific powers that it can use to deliver best to the people. These powers are delegated to national government because they are elected by the people of USA and owe a duty of care to them by giving them powers to act in their best interest.
Answer:
The correct answer is option a.
Explanation:
According to the classical economists, in the money market the equilibrium is achieved by the intersection of demand for money and supply of money curves. The supply of money is constant. They believed that money was demanded to make transactions. The amount of money needed then would depend on the value of transactions. They believed that there is a direct relationship between money supply and price level.
The liquidity preference theory however stated that money is used for transactionary, precautionary and speculative motives. And the money supply is not directly related with the price level. Interest rate also effects the demand and supply of money.
Answer:
To reach full employment (reduce inflationary gap), government spending must fall by $8 million.
Explanation:
Multiplier = 1 / (1 - mpc) = 1 / (1 - 0.8) = 5
Output gap = Current GDP - Potential GDP = $100 - $60 = $40 million
Amount of change in government expenditure needed = Output gap / mpc = $40 / 5 = $8 million
Since the Potential GDP is less than the Current GDP, this implies that the government spending must fall by $8 million to reach full employment.
Therefore, to reach full employment (reduce inflationary gap), government spending must fall by $8 million.