As an elected official, you have been informed that real GDP is below its potential and that action should be taken to encourage economic growth and bring the economy to its long-run equilibrium. The marginal propensity to consume is 0.6, and the amount of new government spending is $700 billion.
What is the multiplier?
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “As an elected official, you have been informed that real GDP is below its potential and that action should be taken to encourage economic ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Clara is looking into investing a portion of her recent bonus into the stock market. While researching different companies, she discovers the following standard deviations of one year of daily stock closing prices.
Answers (1)
Cabinet Division would like to purchase 11,900 units from the Handle Division at a price of $130 per unit. Handle Division has no excess capacity to handle the Cabinet Division's requirements.
Answers (1)
One benefit of obtaining your bachelor degree over your associates degree is A) higher lifetime income potential B) lesser degree of overall education C) more student loan debt D) fewer opportunities for advancement
Answers (1)
Of the five primary components of an information system (hardware, software, data, people, process), which do you think is the most important to the success of a business organization?
Answers (1)
Using the rule of 72, approximate the following amounts: (a) If the value of land in an area is increasing 5 percent a year, how long will it take for property values to double? (Round your answer to 1 decimal place.)
Answers (1)
New Questions in Business
Waldo is buying Marianne's house. The closing date (day belongs to seller) of the sale transaction is September 1 (day 244 of the year). Current Year real estate taxes are $1,100 (will be billed to buyer next year).
Answers (1)
The best way for an employer to find out if a potential employee can do a job is by
Answers (1)
Tiffany is an architect for the building of a large office complex downtown. Frequently a group of steel workers whistle at her as she climbs a ladder or interacts with staff. The men's actions create a hostile work environment. a) true b) false
Answers (1)
Monica heard that as a general rule, she should spend no more than one week's pay on rent. If Monica's salary is $42,068 per year, what is the maximum amount per month that she should spend on rent?
Answers (1)
Which of the following statements regarding a firm's optimal capital structure are true? Check all that apply. The optimal capital structure maximizes the firm's stock price. The optimal capital structure minimizes the firm's WACC.
Answers (1)