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Suppose the economy is experiencing an output gap of –3%. a. Select each response that indicates how monetary policy or fiscal p

igor_vitrenko [27]

Answer:

Suppose the economy is experiencing an output gap of –3%

a. Monetary policy or fiscal policy can be used to raise actual output toward potential output when:

The government can increase its spending or reduce taxes, which will shift the IS curve to the right and increase GDP.

The Fed can reduce the interest rate, which will shift the MP curve down and increase GDP.

b. The policies identified in part a,

can be used together to raise actual output toward potential output.

Explanation:

Investment-Savings (IS) curve shows all the levels of interest rates and output (GDP) at which an economy's total desired investment (I) equals its total desired saving (S). This equilibrium can be achieved at a level of interest rate that maximizes output. The IS curve slopes downward, and to the right because at a lower interest rate, investment is higher, which produces more total output (GDP) for the economy.

7 0

3 years ago

All sources of income are known as which of the following?

Oksanka [162]

I think the correct answer from the choices listed above is the first option. All sources of income are known as gross income. It is an <span>individual's total personal </span>income<span>, before accounting for taxes or deductions. Hope this answers the question. Have a nice day.</span>

4 0

3 years ago

Read 2 more answers

The definition of input , out put and processing please

goldfiish [28.3K]

The best definitions of input, output and processing are as follows:

Input refers to the resources that are used up in production to create further value, finished goods, or more input for further processing.

Processing is the intervening activity that changes the input to output.

Output is the product of processing input or resources. Output is typically the finished outcome from a processing activity.

<h3>What is the relationship between input, output, and processing?</h3>

Processing is at the center of input and output.

Processing involves changing, manipulating, or transforming input resources into output or finished products.

Thus, the definitions of input, output and processing are as given above.

Learn more about input, output, and processing at brainly.com/question/25250720

5 0

2 years ago

Consider the following information: Rate of Return If State OccursState ofProbability ofEconomyState of EconomyStock AStock BSto

grigory [225]

Answer:

Expected Return Boom = 0.29(0.353) + 0.42(0.453) + 0.29(0.333)

Expected Return Boom = 0.3892

Expected Return Boom = 38.92%

Expected Return Good= 0.29(0.123) + 0.42(0.103) + 0.29(0.173)

Expected Return Good = 0.1291

Expected Return Good = 12.91%

Expected Return Poor = 0.29(0.013) + 0.42(0.023) + 0.29(-0.053)

Expected Return Poor = - 0.00194

Expected Return Poor = - 0.194%

Expected Return Bust = 0.29(-0.113) + 0.42(-0.253) + 0.29(-0.093)

Expected Return Bust= - 0.166

Expected Return Bust= - 16.6%

a. Expected return portfolio = 0.3892*0.18 + 0.1291*0.42 + 0.32*- 0.00194 + 0.08*- 0.166

Expected return portfolio = 0.1104

Expected return portfolio = 11.04%

b. Variance = 0.18*(0.3892-0.1104)^2 + 0.42*(0.1291-0.1104)^2 + 0.32*(- 0.00194-0.1104)^2 + 0.08*(- 0.166-0.1104)^2

Variance = 0.02429

c. Standard Deviation = (0.02429)^(0.5)

Standard Deviation = 0.1558

Standard Deviation = 15.58%

3 0

3 years ago

Suppose Deborah gets a sales bonus at her place of work that gives her an extra $600 of disposable income. She chooses to spend

Mashutka [201]

Answer:

Option (d) is correct.

Explanation:

Suppose Deborah gets a sales bonus at her place of work,

Disposable Income, YD = $ 600

Consumption, C = $480

Savings , S = $ 120

Marginal propensity to consumer, MPC:

= Consumption ÷ Disposable Income

= 480 ÷ 600

= 0.8

Therefore, Deborah marginal propensity to consume (MPC) is 0.80

Option (d)

7 0

3 years ago