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Ket [755]
3 years ago
6

Suppose that real GDP is currently $ 13.8 trillion and potential real GDP is $ 14.0 trillion, or a gap of $ 200 billion. The gov

ernment purchases, multiplier is 5.0, and the tax multiplier is 4.0
Holding other factors constant, by how much will government purchases need to be increased to bring the economy to equilibrium at potential GDP?

1.Government spending will need to be increased by $ _________ billion (enter your response rounded to the nearest whole number).

2. Holding other factors constant, by how much will taxes have to be cut to bring the economy to equilibrium at potential GDP?

Taxes will need to be cut by $ _________ billion (enter your response rounded to the nearest whole number).

Business
1 answer:
MAXImum [283]3 years ago
5 0

Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

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Antipoverty programs that are set up so that the amount of government benefits will decline substantially as poor people earn mo
Alex17521 [72]

Antipoverty programs that are set up so that the number of government benefits will decline substantially as poor people earn more income typically create a <u>poverty trap.</u>

What is the Poverty trap?

A "poverty trap" is a collection of self-reinforcing factors that causes nations to start out poor and stay that way. Because poverty breeds poverty, existing poverty directly contributes to future poverty.

In the United States, poverty traps are areas, counties, or localities with chronic institutional and economic issues that result in persistently high rates of poverty. Residents are frequently stuck in unfavorable situations where there is no chance for advancement or economic progress.

The majority of nations are enjoying some growth, and poor people don't seem to have significantly different income dynamics from those who earn more, which shows that poverty traps are not common at either the national or individual level.

Learn more about poverty traps here:

brainly.com/question/14995157

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6 0
1 year ago
What is one way to speed up the acquisition of a classically conditioned response?
Vanyuwa [196]
One way to speed up the acquisition of classically conditioned response is to INCREASE THE INTENSITY OF BOTH THE CONDITIONED STIMULUS AND UNCONDITIONED UNCONDITIONED STIMULUS.
Acquisition refers to how learned responses are strengthened or changed over time. Classical conditioning refers to the learning process which occur when two stimuli are repeatedly paired. In order to increase the rate of learning [acquisition], the intensity of both the condition and unconditioned stimulus can be increased.
6 0
3 years ago
People need to have _____ in the economy to spend money.
katen-ka-za [31]
People need to have [Purchasing Power] in the economy to be able so spend money. Purchasing power means having the financial ability to spend money in buying goods and services.

5 0
3 years ago
Read 2 more answers
About 13 to 16 guests out of every 100 are purposefully out to scam us and get something for free.
Oxana [17]

Answer:

Find attached complete question with the multiple choices:

The correct answer is false

Explanation:

The statement implies that in an hospitality business,13% to 16% of the guests checked in, in order to be served for free.

Hospitality business sector prouds itself in having clients that have taste and want value for money,this is evident in their ability to make payments for hotel reservations prior to arrival,as a result ,it would be out of place to say 13% to 16% of such individuals want free service.

Everyone knows that such luxury of service comes at a premium price,it is not in anyway similar to buying a course online where to some extent you enjoy a free service(freemium) and expected to pay for any service above the minimum.

All in all,hospitality is pay as you go.

Download xlsx
7 0
3 years ago
hums 202 Which of the following describes a consumer installment loan? A. A loan you get based on the tax refund that you expect
umka2103 [35]

Answer:

B. A loan that is repaid in equal monthly payments for a specific period of time, usually several years.

C. A loan where you have to promise to give the bank your assets if you do not repay the loan.

Explanation:

A Consumer installment loan is also known as a closed end credit. It is a form of loan whereby the consumers are expected to pay back in a regular manner usually monthly over a period of time which could span between one to  about forty years.

The loan is given based on how credit worthy the consumer is. Failure to pay back the loan after the stipulated time frame would result to the seizure of the consumer's property or assets by the lending institution. The lending institution could be a bank. A mortgage loan, and a car loan are examples of consumer installment loans.

6 0
2 years ago
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