Why do increases in government spending generate increases in GDP? Are there any tradeoffs involved with increased
Question:
Why do increases in government spending generate increases in GDP? Are there any tradeoffs involved with increased government spending as a means of increasing economic output?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (QA)
Increases in government spending can generate increases in Gross Domestic Product GDP due to their impact on aggregate demand and economic activity However there are tradeoffs and considerations assoc...View the full answer
Answered By
Carly Cimino
As a tutor, my focus is to help communicate and break down difficult concepts in a way that allows students greater accessibility and comprehension to their course material. I love helping others develop a sense of personal confidence and curiosity, and I'm looking forward to the chance to interact and work with you professionally and better your academic grades.
4.30+
12+ Reviews
21+ Question Solved
Related Book For
Introduction To Economics Social Issues And Economic Thinking
ISBN: 9780470574782
1st Edition
Authors: Wendy A. Stock
Question Posted:
Students also viewed these Business questions
-
1. In the classical model, it is thought that the long-run: A. and short-run aggregate supply curves are both upward sloping. B. aggregate supply curve is vertical and the short-run aggregate supply...
-
KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
What are the values of m and n after executing the following code? int n = 123456789; int m= 0; while (n != 0) { } m (10 m) + (n % 10); n = n/ 10;
-
The company president is reviewing the performance and budget of the marketing department with the vice president of marketing. Should that be a one-on-one meeting, or should the CFO be present? Why?...
-
The daily demand for Iron coat paint at the Top Value Hardware Store in North Bay is normally distributed, with a mean of 30 liters and a standard deviation of 10 liters. The lead time for receiving...
-
The Wide World of Fluids article titled "Follow those particles,". Two photographs of four particles in a flow past a sphere are superposed as shown in Fig. P4.18. The time interval between the...
-
On December 31, 2012, Cathy Chen, a self-employed certified public accountant (CPA), completed her first full year in business. During the year, she billed $360,000 for her accounting services. She...
-
You have a staff of three (3) uniformed personnel in your office that can conduct inspections and fire prevention activities. Additionally you have eleven (11) uniformed staff on duty that can...
-
In the AD/AS model, an increase in aggregate demand will cause a. An increase in GDP and an increase in the price level. b. A decrease in GDP and an increase in the price level. c. An increase in GDP...
-
The value of the bricks purchased by a contractor to build a fireplace in a new home is not counted in GDP because a. Business spending of any type is excluded from GDP. b. It would be double...
-
Ashton Inc. acquired a 40% interest in Villa Corp. for $200,000. In the first year after acquisition, Villa reported a loss of $700,000. Using the equity method, how should Ashton account for this...
-
What is meant by the dual effect of transactions? How does it relate to the accounting equation?
-
What is a source document? Why does a business need to prepare source documents?
-
What is a business' earning process, and when does the business record revenues?
-
Explain the difference between a quantity discount and a sales (cash) discount.
-
What is a perpetual inventory system? How is a business' cost of goods sold determined under this system?
-
Timmer Bachman founded the Bachman Corporation over 25 years ago. The companys genesis was the unique climbing apparatus developed by Timmer, an avid mountaineer. Bachman Corporation has continued to...
-
Arlington Merchants reported the following on its income statement for the fiscal years ending December 31, 2016 and 2015. 2016 2015 Sales $4,857,500 $4,752,900 Cost of goods sold 3,258,950 3,207,000...
-
Discuss the promotion a new grocery products producer would need in order to d e velop appropriate channels and move products through those channels. Would the nature of this job change for a new...
-
Describe the advantages and disadvantages of the approaches to international market entry discussed in this chapter.
-
Hydropump, Inc., produces and sells high-quality pumps to business customers. Its marketing research shows a growing market for a similar type of pump aimed at final consumersfor use with...
-
Suppose your portfolio's daily returns follow a normal distribution with volatility = 1.5%. (i) Based on this information, what is the 10-day 95% VaR? (ii) What is the corresponding 10-day 95% ES?
-
Zero Corp's total common equity at the end of last year was $350,000 and its net income was $70,000. What was its ROE?
-
What is the value of a perpetuity that pays $100 every 6 months forever? if The discount rate quoted on an APR basis is 5.6%.
Study smarter with the SolutionInn App