Assuming that real and potential GDP are initially equal, an increase in government purchases Select one: a.

Fantastic news! We've Found the answer you've been seeking!

Question:

Assuming that real and potential GDP are initially equal, an increase in government purchases

Select one:

a. has a negative effect on real GDP in the long run

b. results in a higher rate of inflation in the long run

c. results in a lower rate of inflation in the long run

d. has a positive effect on real GDP in the long run

Related Book For answer-question

Venture capital and the finance of innovation

ISBN: 978-0470454701

2nd Edition

Authors: Andrew Metrick

See More Books

Posted Date: Feb 25, 2022 03:08 AM

See More Questions

An increase in government spending raises income: a. and the interest rate in the short run, but leaves both unchanged in the long run. b. in the short run, but leaves it unchanged in the long run,...
Why can a $1 increase in government purchases lead to more than a $1 increase in income and spending?
What is the principal effect of an increase in government spending?
Consider how the Claims in our Debate Cases are the Messages we as Senders Encode to the Opposition Team / Receivers. When writing and litigating / presenting your Debate Case consider ways to...
RAS, Inc. is a supplier of residence alarm systems to building contractors. Sam Jennings, the companys new CEO, is out to make a name for himself and makes it known to his management team that he...
(a) Is an option to buy property an executory contract? (b) If Southmark had given written notice of its intent to exercise the option, but had not yet paid the purchase price, before filing for...
Consider a European Call option with strike $K$ and time to expiration $T$. Denote the price of the call for $C(S, T)$ and let $B(T)$ the price of one unit of a zero coupon bond maturing at...
Bobs Country Kitchen, a small family-owned restaurant in northern New York, has seen a drop in profitability over the past three years and the owners want to know why. Bobs has been a local favorite...
Your company is excited with the information discussed regarding the cloud technologies that are available to Get-Sole Shoes. Now the management team wants to examine what its cloud infrastructure...
A gas containing 50 mol% propylene in propane is to be separated with silica gel having the equilibrium properties shown in Figure. The final products are to be 90 mol% propylene and 75 mol% propane....
An orthogonal basis for the column space of matrix A is {V, V, V3}. Use this orthogonal basis to find a QR factorization of matrix A. Q= R= (Type exact answers, using radicals as needed.) A = 1 - 1 0...
A corporation has concluded that its financial risk premium is too high. In order to decrease this, the firm can A ) increase the proportion of long - term debt to decrease the cost of capital. B )...
Yesterday the exchange rate between the Tomato and the U.S. dollar was USD 0.5000/Tomato. What will be the exchange rate tomorrow if you expect the tomato to appreciate by 20 %? Give your answer in...
Using the pure expectations theory, forecast the annual interest rate on six-year Treasuries that are purchased nine years from today. Select the range in which the correct answers falls. (That is,...
Morton Corp., a calendar-year C corporation, started business in Year 1. In Year 5, the company sold its office building and office furniture, and purchased a new office building and office...
The shares of a manufacturing company are selling at rupees 2 0 per share. The firm paid dividends at a rate of 2 rupees per share last year. The estimated growth of the company is approximately 5 %...
(a) The AC circuit shown in Figure Q3-1 is expressed in the phasor domain. Given V = 20 20 Vpeak and V = 40 2 50 Vpeak, calculate the phasors I and I2. [10] (b) Calculate the reactive power absorbed...
If a test has high reliability. O the test measures what the authors of the test claim it measures O people who take the same test twice get approximately the same scores both times O scores on the...
True, False, or Uncertain: The levered beta for a company is always greater than or equal to the unlevered beta for the same company.
The $600M XYZ Fund has completed its 10-year life. Its annual investments, fees, distributions, and portfolio value are given in Exhibit 3-10. (a) Compute the value multiple, realized value multiple,...
True, False, or Uncertain: Done properly, analytical solutions and computational solutions will give the same result every time.
Assume you want to use random tests on an FIR filter program. How would you know when the program under test is executing correctly?
Three devices are attached to a microprocessor: Device 1 has highest priority and device 3 has lowest priority. Each devices interrupt handler takes 5 time units to execute. Show what interrupt...
Provide examples of how each of the following can occur in a typical program: a. compulsory miss b. capacity miss c. conflict miss

Assuming that real and potential GDP are initially equal, an increase in government purchases Select one: a.

Question:

Expert Answer:

The difterence between real GDp Known as the Output GAP when t... View the full answer

Venture capital and the finance of innovation

Students also viewed these accounting questions