1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
algol13
3 years ago
7

Suppose a hypothetical economy is currently in a situation of deficient aggregate demand of $16 billion. Four economists agree t

hat expansionary fiscal policy can increase total spending and move the economy out of recession, but they are debating which type of expansionary policy should be used. Economist A believes that the government spending multiplier is 4 and the tax multiplier is 2. Economist B believes that the government spending multiplier is 2 and the tax multiplier is 8.
Required:
Compute the amount the government would have to increase spending to close the output gap according to each economist's belief.
Business
1 answer:
GarryVolchara [31]3 years ago
5 0

Answer:

Economist A

Government spending multiplier $4billion

Tax multiplier $8billion

Economist B

Government spending multiplier $8billion

Tax multiplier $2billion

Explanation:

Computation for the amount the government would have to increase spending to close the output gap according to each economist's belief

ECONOMIST A

Government spending multiplier=16/4

Government spending multiplier=$4billion

Tax multiplier=16/2

Tax multiplier=$8billion

ECONOMIST B

Government spending multiplier=16/2

Government spending multiplier=$8billion

Tax multiplier=16/8

Tax multiplier=$2billion

Therefore the amount the government would have to increase spending to close the output gap according to each economist's belief are :

ECONOMIST A

Government spending multiplier=$4billion

Tax multiplier=$8billion

ECONOMIST B

Government spending multiplier=$8billion

Tax multiplier=$2billion

You might be interested in
How did you feel while you were filling out the inventory?nervous, curious, stressed, relaxed, etc
Usimov [2.4K]
I feel stressed reading this question as it has no context but the question is asking for your opinion. there really is no wrong answer
8 0
2 years ago
Read 2 more answers
A U.S. firm has sold an Italian firm €1,000,000 worth of product. In one year the U.S. firm gets paid. To hedge, the U.S. firm b
Paraphin [41]

Answer:

The firm will realize $1,640,000 on the sale net of the cost of hedging.

Explanation:

7 0
3 years ago
Read 2 more answers
Clint Hill, CEO of Oregano Systems, a software engineering company, holds internal contests on the company intranet to get his e
kodGreya [7K]

Answer:

C) Bottom-up approach

Explanation:

The bottom-up approach refers to a management style where employee feedback is very valuable. Employees are generally invited to participate in the decision making or goal setting processes. The communication flows from the bottom of the organization to upper management levels.

In this case Hill, organizes an internal contest in order to get new business ideas.

8 0
3 years ago
$6000 is invested into 2 accounts at 8% and 7.5% and the total interest is $472.50 how much is invested at 8%?
djverab [1.8K]
0.08x+0.057 (6000-x)=472.5
Solve for x
X=4500 invested at 8%
4 0
3 years ago
Sabrina was bored with her job in a clothing factory
Crank
If she keeps working there she is going to become depressed, so she should find a job that makes her happy
7 0
2 years ago
Read 2 more answers
Other questions:
  • Yan Yan Corp. has a $3,000 par value bond outstanding with a coupon rate of 5.2 percent paid semiannually and 25 years to maturi
    11·1 answer
  • The price elasticity of demand is equal to the​ ________ in the​ ________ divided by the​ ________ in the​ ________.
    13·1 answer
  • Information that has been measured and reported in a similar manner for different enterprises is _________.
    9·1 answer
  • Which responsibility is a project manager mostly likely to have in a web design company
    7·2 answers
  • During its first year of operations, Silverman Company paid $10,285 for direct materials and $9,800 for production workers' wage
    10·1 answer
  • (Consider This) When the federal government started requiring restaurants to print calorie counts next to menu items:__________.
    10·1 answer
  • DeShawn formed a hiring committee for his advertising company. Six employees (including two managers) met to discuss applicants
    13·1 answer
  • Which of these pavement markings separates two lanes traveling in the same direction?
    10·1 answer
  • By law, manufacturers and distributors are responsible for providing Safety Data Sheets.
    8·1 answer
  • In the 2,500-year-old text the art of war, chinese general sun tzu argues that _____________ and ___________ are key components
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!