Use the aggregate expenditures model to show how government fiscal policy could eliminate either a recessionary...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Use the aggregate expenditures model to show how government fiscal policy could eliminate either a recessionary expenditure gap or an inflationary expenditure gap. Given that full employment exists at $5,000, does a recessionary gap or inflationary gap exist? Identify this gap in the diagram below. Instructions: 1)Use the snap tool (Gap) to show this expenditure gap. 2) This will display a two-ended arrow. Drag one end of the arrow to the lowest value of the inflationary expenditure gap and drag the other end to the highest value of the gap. Your Graph Score: 0% 8000- Full Employment 7000- 8000- 5000- AE. 4000- 3000--- 2000- 1000- 45° 1000 2000 3000 4000 5000 6000 7000 8000 Real GDP Instructions: Enter only a whole number for your answers. What is the dollar amount of this expenditure gap? Aggregate Expenditures (Billions of Dollars) Use the aggregate expenditures model to show how government fiscal policy could eliminate either a recessionary expenditure gap or an inflationary expenditure gap. Given that full employment exists at $5,000, does a recessionary gap or inflationary gap exist? Identify this gap in the diagram below. Instructions: 1)Use the snap tool (Gap) to show this expenditure gap. 2) This will display a two-ended arrow. Drag one end of the arrow to the lowest value of the inflationary expenditure gap and drag the other end to the highest value of the gap. Your Graph Score: 0% 8000- Full Employment 7000- 8000- 5000- AE. 4000- 3000--- 2000- 1000- 45° 1000 2000 3000 4000 5000 6000 7000 8000 Real GDP Instructions: Enter only a whole number for your answers. What is the dollar amount of this expenditure gap? Aggregate Expenditures (Billions of Dollars)
Expert Answer:
Answer rating: 100% (QA)
Use this as an example the question is not complete Thank yo... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
The economy is growing slowly, the inflationary gap is large, and there is a budget deficit. a. Do we know whether the budget deficit is structural or cyclical? Explain your answer. b. Do we know...
-
Arrow Tools is a power tool manufacturer located in the city of Dongguan, located in Chinas Pearl River Delta. Ever since Arrow Tools began making tools in 1980, they have been using service teams in...
-
Oligopolist A is considering a price reduction. The payoff from this strategy depends on the behavior of Oligopolist B. If Oligopolist B also reduces price, then Oligopolist A will earn a profit of...
-
Stock Valuation While it comes to investing, picking the right stock plays a crucial role. Careful research and patience are needed. One needs to check several aspects of the company before...
-
What effect will each of the following have on a products unit contribution margin ? In each case, assume that all other variables remain unchanged. a. The business raises the selling price of the...
-
A pond of water at 0C is covered with a layer of ice 4.00 cm thick. If the air temperature stays constant at &10.0C, how long does it take for the ice thickness to increase to 8.00 cm?
-
Calculate \(r\) for the changes in the flow of vehicles and the level of pollution in Exercise 11.12. Assuming that the necessary assumptions can be met, construct a 99% confidence interval for the...
-
During early 2012, economic hardship was stretching the limits of Frances welfare system. One indicator of the level of hardship was the increase in the number of people bringing items to a Paris...
-
A potato is launched out of a building (building A) from the 10th floor which is 15 m high, with a velocity of 55 m/s at an angle of 35.0 above the horizontal. There is a building (building 2) 130 m...
-
The steel plane truss shown in the figure is loaded by three forces P, each of which is 490 kN. The truss members each have a cross-sectional area of 3900 mm2 and are connected by pins each with a...
-
T1_10: Assume that in an open economy: C = 40+ 0.65(Y - T); G = 10; 1 = 20; T = 0, where T are taxes. EX = 5+ 4EP*/P; IM = 10 + 0.1 (Y - T) - 3EP*/P; E = 3; P* = 1.5; P = 2. Find Y
-
1. The yield point data necessary to experimentally construct a yield surface for the particle reinforced aluminum 6092/17.5p-W is provided below. These data were acquired using axial- torsional...
-
The Objective is to develop a strategic leadership development plan. Throughout this course, we have examined in depth the process of strategic leadership and the various elements that make...
-
Examine Table 2.1. Describe the biological reason row 1 and row 6 of the data in th table differ from each other. Limit response to 40 words maximum. genotype PO B P 10 B P " O* _Z+ _P* / * _O+ _g*...
-
The energy E of the electron in a hydrogen atom can be calculated from the Bohr formula: = E Ryn 2 In this equation Ry stands for the Rydberg energy, and n stands for the principal quantum number of...
-
Give an example of one proactive and one reactive decision- making situation that you or one of your co-workers has experienced in your company. If you are not currently working, you may draw on a...
-
Explain how you propose to mitigate personal biases, remain objective during data analysis, and set aside personal worldviews being in a leadership position and dealing with Organizational Injustice.
-
1. Which of the four major types of information systems do you think is the most valuable to an organization? 2. How do you critically associate the ideas of business agility and business efficiency...
-
1. In this context, explain the factors that the Board of Directors of Gap will need to consider in developing a strategic plan. 2. Provide a detailed discussion of what the organization will need to...
-
1. How many of the eight characteristics of an ideal mission statement are present in Harley-Davidsons mission statement? (See table below) 2. How many of the eight characteristics of an ideal vision...
-
Please conduct a job analysis for the position graduate student enrolled in a masters program in the general field of business. This job analysis may benefit from interviewing incumbents (i.e., other...
-
Honeybees accumulate charge as they fly, and they transfer charge to the flowers they visit. Honeybees are able to sense electric fields; tests show that they can detect a change in field as small as...
-
A platypus foraging for prey can detect an electric field as small as 0.002 N/C. To give an idea of the sensitivity of the platypuss electric sense, how far from a +10 nC point charge does the field...
-
Raindrops acquire an electric charge as they fall. Suppose a 2.5-mm-diameter drop has a charge of +15 pC; these are both typical values. If the strength of the earths electric field is 100 N/C, how...
Study smarter with the SolutionInn App