Q: Explain the difference between government spending and government purchases of goods and
Explain the difference between government spending and government purchases of goods and services (G). Which is larger?
See AnswerQ: What would happen to the multiplier analysis if b = 0?
What would happen to the multiplier analysis if b = 0? If b = 1?
See AnswerQ: Explain the basic logic behind the multiplier in words. Why does
Explain the basic logic behind the multiplier in words. Why does it require b, the marginal propensity to consume, to be between 0 and 1?
See AnswerQ: Explain the logic behind the finding that variable imports reduce the numerical
Explain the logic behind the finding that variable imports reduce the numerical value of the multiplier?
See AnswerQ: Use the following data to compute the College Price Index for 2017
Use the following data to compute the College Price Index for 2017 using the base 1987 = 100.
See AnswerQ: What would the circular flow diagram (Figure 1) look like
What would the circular flow diagram (Figure 1) look like in an economy with no government? Draw one for yourself.
See AnswerQ: What is a consumption function, and why is it a useful
What is a consumption function, and why is it a useful device for government economists planning a tax cut?
See AnswerQ: Look back at the income-expenditure diagram in Figure 3 and
Look back at the income-expenditure diagram in Figure 3 and explain why some level of real GDP other than $6,000 (say, $5,000 or $7,000) is not an equilibrium on the demand side of the economy. Do not...
See AnswerQ: Does the economy this year seem to have an inflationary gap or
Does the economy this year seem to have an inflationary gap or a recessionary gap?
See AnswerQ: Try to remember where you last spent a dollar. Explain how
Try to remember where you last spent a dollar. Explain how this dollar will lead to a multiplier chain of increased income and spending. (Who received the dollar? What will he or she do with it?)
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