Consider the economy of Arcadia. Its households spend 75% of increases in their income. There are no taxes and no foreign trade. Its currency is the are. Potential output Is 600 billion arcs (Scenario: Fiscal Policy) Look at the scenario Fiscal Policy. If actual output Is 500 billion arcs, to restore the economy to potential output government should by 25 billion arcs.
a. increase spending
b. increase taxes
c. decrease spending
d. decrease taxes
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Consider the economy of Arcadia. Its households spend 75% of increases in their income. There are no taxes and no foreign trade. Its ...” 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
K's Fashions is growing quickly. Dividends are expected to increase by 8 percent annually for the next three years, with the growth rate falling off to a constant 3 percent thereafter.
Answers (1)
What determines how the burden of tax is divided between buyers and sellers? Why?
Answers (2)
John was driving home one night in a terrible snow storm when his car stalled. He managed to push the car onto a small shopping center's parking lot.
Answers (1)
Legacy issues $570,000 of 8.5%, four-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. They are issued at $508,050 when the market rate is 12%.
Answers (1)
she needed to find a new way to manage payroll for her employees, so she researched payroll companies to see which one would best meet her needs. What type of buying situation was Diane involved in?
Answers (1)
New Questions in Business
The demand for salt is inelastic, and the supply of salt is elastic. The demand for caviar is elastic, and the supply of caviar is inelastic.
Answers (1)
A match is an example of something that stores what?
Answers (1)
For the following statement, state the relevant elasticity and state what its value should be (negative, positive, greater than one, zero, and so on). The demand for European vacations increases during times of rising incomes. a.
Answers (1)
What are the two basic parts of a management plan?
Answers (1)
I need answers a, b, c, or d
Answers (2)