Answer: b. left by about $26.7 billion.
Explanation:
The multiplier determines how much government spending affects the aggregagte demand.
Multiplier is:
= 1 / ( 1 - MPC)
= 1 / (1 - 0.625)
= 2.67
The effect on Aggregate demand is:
= Government spending * Multiplier
= -10 billion * 2.67
= -$26.7 billion
Aggregate demand will shift left by $26.7 billion to show that aggregate demand is decreasing.
Answer:
The three scenarios describe a competitive market.
Explanation:
1) In the competitive market buyers and sellers are price takers, this means that there are many producers and consumers and none of them are able to intervene in price and market. Price is given, ie price is determined by interaction in the market. 2) The products are identical. That is, no company will make a profit due to differentiated products. In perfect competition, companies produce identical products, and the consumer is indifferent to the product characteristics of each company. 3) There is free entry and exit of companies and factors of production, ie there is no cost to enter and exit any sector. This means that factors can migrate from one sector to another without incurring costs, meaning there are no barriers to entry and exit from any sector.
Thus, from items 1 and 2, consumers and buyers are price takers, that is, they cannot influence the price determined by the market. Item 3 is about achieving zero profit or normal long-term profit. This is because the free entry and exit of companies avoids extraordinary profits by encouraging companies to migrate to sectors that earn higher profits in the short term. Thus, in perfect competition, compa
The answer is A) Raising taxes
The Constitution of 1789 gives the Federal Government authority to raise and levy taxes in all of the States in America.
It comes under the General Welfare Clause and gives complete authority to impose and collect taxes.
It prohibits separate State taxation IF it hinders inter State and International trading. It also prohibits each State from setting up independent import and export duties without the approval of the Federal Government, that is, the Congress.
It requires all tax revenue bills to originate solely from the House of Representatives.
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