The economy is growing slowly, the inflationary gap is large, and there is a budget deficit. a.
Question:
a. Do we know whether the budget deficit is structural or cyclical? Explain your answer.
b. Do we know whether automatic stabilizers are increasing or decreasing aggregate demand? Explain your answer.
c. If a discretionary decrease in government expenditure occurs, what happens to the structural budget balance? Explain your answer.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 91% (12 reviews)
a The economy is at an above fullemployment equilibrium because there is an i...View the full answer
Answered By
Asim farooq
I have done MS finance and expertise in the field of Accounting, finance, cost accounting, security analysis and portfolio management and management, MS office is at my fingertips, I want my client to take advantage of my practical knowledge. I have been mentoring my client on a freelancer website from last two years, Currently I am working in Telecom company as a financial analyst and before that working as an accountant with Pepsi for one year. I also join a nonprofit organization as a finance assistant to my job duties are making payment to client after tax calculation, I have started my professional career from teaching I was teaching to a master's level student for two years in the evening.
My Expert Service
Financial accounting, Financial management, Cost accounting, Human resource management, Business communication and report writing. Financial accounting : • Journal entries • Financial statements including balance sheet, Profit & Loss account, Cash flow statement • Adjustment entries • Ratio analysis • Accounting concepts • Single entry accounting • Double entry accounting • Bills of exchange • Bank reconciliation statements Cost accounting : • Budgeting • Job order costing • Process costing • Cost of goods sold Financial management : • Capital budgeting • Net Present Value (NPV) • Internal Rate of Return (IRR) • Payback period • Discounted cash flows • Financial analysis • Capital assets pricing model • Simple interest, Compound interest & annuities
4.40+
65+ Reviews
86+ Question Solved
Related Book For
Macroeconomics Canada in the Global Environment
ISBN: 978-0321778109
8th edition
Authors: Michael Parkin, Robin Bade
Question Posted:
Students also viewed these Economics questions
-
The economy is in a boom and the inflationary gap is large. a. Describe the discretionary and automatic fiscal policy actions that might occur. b. Describe a discretionary fiscal restraint package...
-
An economy is facing the inflationary gap shown in the accompanying diagram. To eliminate the gap, should the central bank use expansionary or contractionary monetary policy? How will the interest...
-
The global economy is in bad shape and getting worse, the world economy is growing slowly and productive public investment that boosts both the demand and supply sides of the economy is not being...
-
Use the information in Figure to answer the following questions: a. What is the six-month forward rate for the Japanese yen in yen per U.S. dollar? Is the yen selling at a premium or a discount?...
-
Refer to the data in Exercise E3-44B. Smiths accountant found an error in the expense records from the year reported. Depreciation on manufacturing plant and equipment was actually $305,000, not the...
-
Consider the analogy of the jiggling box containing coins that was described. The reaction, the flipping of coins that either face heads up (H) or tails up (T), is described by the equation H T,...
-
Godfrey and Taylor formed a partnership on 1 July 2025 with initial capital balances of \($90\) 000 and \($60\) 000 respectively. For the year ended 30 June 2026, the Profit or Loss Summary account...
-
Error Analysis Lowell Corporation has used the accrual basis of accounting for several years. A review of the records, however, indicates that some expenses and revenues have been handled on a cash...
-
6. 7. 8. If one of the diameters of the circle x + y-2x-6y+6=0 is a chord of another circle 'C', whose centre is at (2, 1), then its radius is Let Bi (i = 1, 2, 3) be three independent events in a...
-
On October 1, Year 6, Versatile Company contracted to sell merchandise to a customer in Switzerland at a selling price of SF400,000. The contract called for the merchandise to be delivered to the...
-
How would lowering taxes on employment create jobs?
-
Explain why $150 billion of tax cuts wont increase the budget deficit by $150 billion. The $ 150-billion stimulus plan will bump up the deficit, but not necessarily dollar for dollar. Heres why: If...
-
Critically discuss the need for companies to report the environmental and social impact of their supply chains. How might they do that? Who would benefit from that information?
-
Retailers have never been so adept at meeting customers needs as they are now. If this is so, then why is direct marketing growing so fast?
-
Under what circumstances would an UnknownHostException be thrown?
-
Retin-A is a topical ointment originally developed for the treatment of severe cases of acne and related skin disorders. An observed side benefit resulting from use of this product is its beneficial...
-
In what circumstances should you never use the telephone for contacting prospects? Give examples of companies or situations where this is the case.
-
Why is it not common to work directly with the InputStream and OutputStream objects obtained from a Socket object?
-
A small volume of blood is selected and examined under a microscope, and the number of white blood cells is counted. Suppose that for healthy people the number of white blood cells in such a specimen...
-
Show that gj concave AHUCQ Abadie For nonnegative variables, we have the following corollary.
-
The cost of filling up the car is rising as the crude oil price soars and pump prices may exceed the peak price of 2009. a. Does demand for or the supply of gasoline or both change when the price of...
-
The cost of filling up the car is rising as the crude oil price soars and pump prices may exceed the peak price of 2009. a. Does demand for or the supply of gasoline or both change when the price of...
-
The cost of filling up the car is rising as the crude oil price soars and pump prices may exceed the peak price of 2009. a. Does demand for or the supply of gasoline or both change when the price of...
-
-> Let G and H be groups. A function : G H is called a (group) homomorphism if it satisfies (9192) = (91) * (92) for all 91, 92 G. (Note that the product 91*92 uses the group law in the group G,...
-
Complete the table for the point (2, 2). f(x) (2, 2) f(2x) 6f(2x) 6f(2(x+1))- -3
-
I hired a carpenter and an apprentice to do some work at my business. They worked two days. On the first day I was billed $210 for 11 hours of work by the main carpenter and for 7 hours of work by...
Study smarter with the SolutionInn App