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2 years ago

In the Keynesian-cross model with a given MPC >0, the government-expenditure multiplier ______ the tax multiplier.

Business

1 answer:

Slav-nsk [51]2 years ago

5 0

Answer:

the government-expenditure multiplier _Is larger than_ the tax multiplier.

Is larger than

Explanation:

Keynesian Cross Model otherwise known as expenditure-output model is used to determine the point where total or aggregate expenditures in the economy are intercept the amount of output produced, i.e equilibrium level of real GDP. In economy, if MPC >0, the government-expenditure multiplier is larger than the tax multiplier.

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the economy was in long-run equilibrium when aggregate demand increased. at this point in time, the expected inflation has start

artcher [175]

The eco-nomy was in long-run equilibrium when aggre-gate demand increased. At this point in time, the expec-ted inflation has start-ed to adjust to the new high-er actual inflation rate. Accor-ding to the (Friedman) natural rate the-ory, this means the unemploy-ment rate in the economy must curr-ently be <u><em>below the natu-ral rate</em></u>.

Milton Friedman defi-ned the natural rate of unemploy-ment as the level of unemployment that result-ed from real economic forces, the long-run level of whi-ch could not be altered by monet-ary policy. Accor-ding to the general equili-brium model of economics, natural unemploy-ment is equal to the level of unemploy-ment of a labor mark-et at perfect equilibrium.

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8 months ago

If you are required to show proof of financial responsibility for the future, for how many years must the proof be kept? 1 year

Harrizon [31]

Answer:

For 2 years

Explanation:

Financial responsibility is the procedure or the process which is defined as managing the money and also the other similar assets, in a method which is considered as productive and in the best interest of family, business or individual.

So, in order to show the proof of the financial responsibility in the near future, business or individual needs to show the proof for the 2 years because to make the proof comparable with the previous year.

7 0

2 years ago

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brilliants [131]

Answer:

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Explanation:

4 0

2 years ago

The Office of Management and Budget ______. Group of answer choices

Serga [27]

Answer Choices:

A. is staffed by accountants, economists, tax lawyers

B. keeps Congress well informed on international affairs

C. was created by Article III of the Constitution

D. consents to treaties and trade agreements negotiated by the President

Answer:

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2 years ago

Read 2 more answers

Farr, an unmarried taxpayer, had $70,000 of adjusted gross income and the following deductions for regular income tax purposes:_

Karolina [17]

Answer:

C. $11,000

Explanation:

For computational purposes, both the Mortgage interest as well as the miscellaneous itemized deducted qualify as deductions based on the Schedule A which is the regular tax purposes.

However, only Mortgage interest will be allowable itemized deduction because miscellaneous itemized deductions fall under the category of adjustments and as such do not qualify for deductions under the AMT which is the Alternative Minimum Taxable Income.

Based on the explanation, only $11,000 of mortgage interest qualifies.

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2 years ago