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
igomit [66]
3 years ago
8

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

olicy can be used to raise actual output toward potential output. 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. Firms can increase production, which will shift the IS curve to the right and increase GDP. The Fed can increase the interest rate, which will shift the MP curve up and reduce GDP. The government can increase taxes, which will shift the IS curve to the left and reduce GDP. b. The policies you identified in part a if used together, will cancel each other out, and the economy will remain in output gap of -3%. cannot be used together because each moves the economy in a different direction. can be used together to raise actual output toward potential output.
Business
1 answer:
igor_vitrenko [27]3 years ago
7 0

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.

You might be interested in
Suppose you invest 60% of your portfolio in campbell soup and 40% in boeing. the expected dollar return on your campbell soup st
DiKsa [7]
<span>Boeing stock has increased to about 41.4% while Campbell soup has decreased to about 58.5%. This is because Boeing's rate of return was significantly higher than Campbell's soup, therefore with the returns added in, the portion of the portfolio that is invested in Boeing has increased.</span>
4 0
3 years ago
The temperature in Gavin’s oven is a sinusoidal function of time. Gavin sets his oven so that it has a maximum tem- perature of
kondor19780726 [428]
It equals so divide 45 in 377
3 0
3 years ago
Please help or going to jump off a really high bridge
Sedbober [7]

Answer:

join pa dlet to get the answers

Explanation:

7 0
3 years ago
Darwin Inc. sells a particular textbook for $20. Variable expenses are $14 per book. At the current volume of 50,000 books sold
Ksenya-84 [330]

Answer:

Fixed costs= $300,000

Explanation:

Giving the following information:

Selling price per unit= $20

Variable expenses= $14

Break-even point in units= 50,000

<u>To calculate the fixed costs, we need to use the following formula:</u>

Break-even point in units= fixed costs/ contribution margin per unit

50,000= fixed costs / (20 - 14)

50,000*6= fixed costs

Fixed costs= $300,000

7 0
3 years ago
Anthony, a self-employed plumber, makes a maximum contribution to a SEP for his employee, Debra. Debra's compensation is $40,000
aksik [14]

Answer:

$10,000

Explanation:

The maximum contribution you can made to SEP shall not exceed the lower of the following two limits for 2020:

1. 25% of total compensation paid to employee.

2. $57,000

By applying the above rule to the given scenario in question, the maximum contribution allowed by the Anthony to be made to SEP for Debra shall not exceed:

25% of total compensation=25%*40,000=$10,000

7 0
3 years ago
Other questions:
  • Rios Co. makes drones and uses the variable cost approach in setting product prices. Its costs for producing 30,000 units follow
    10·2 answers
  • Which one of the following choices is the responsibility of the team leader? Set project expectations Outline the ideas to be di
    13·1 answer
  • Lew Co. sold 200,000 corrugated boxes for $2 each. Lew's cost was $1 per unit. The sales agreement gave the customer the right t
    5·1 answer
  • An oligopolistic market structure is distinguished by several characteristics, one of which is either homogeneous or differentia
    9·1 answer
  • Kaylor Equipment Rental paid $75 in dividends and $511 in interest expense. The addition to retained earnings is $418 and net ne
    5·1 answer
  • If Ed​ Lusk, VP for​ operations, proceeds with the existing prototype​ (option a), the firm can expect sales to be 110 comma 000
    7·1 answer
  • Jeff is a top manager at a textile factory. He is developing a crisis plan in the event that the company has a toxic spill or ac
    8·1 answer
  • Ivanhoe Corporation has fixed costs of $412,800. It has a unit selling price of $4, unit variable cost of $2.40, and a target ne
    8·1 answer
  • The metro system in Chepe City is new, so the government has decided not to sell tickets but to charge a flat amount to each of
    13·1 answer
  • What are the name of the 7 contents
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!