other things equal, a reduction in personal and business taxes can be expected to:

other things equal, a reduction in personal and business taxes can be expected to:

Asked by 2 years ago
9.9k points
The relationship between investment and GDP is shown by theinvestment schedule
in the aggregate expenditures model, it is assumed that investmentdoes not change when real GDP changes
all else equal , a large decline in the real interest rate will shift theinvestment schedule upward
the level of aggregate expenditures in the private closed economy is determined by theexpenditures of consumers and businesses
refer to the above data the MPS IS3/10
the equilibrium level of GDP in a private closed economy is whereaggregate expenditures equal GDP
in a private closed economy when aggregate expenditures equal GDPplanned investment equals saving
in a private closed economy when aggregate expenditures exceeds GDPbusiness inventories will fall
if at some level of GDP the economy is experiencing an unintended decrease in inventoriesdomestic output will increase
if an unintended increase in business inventories occurswe can expect businesses to lower the level of production
for a private closed economy and unintended decline in inventories suggest thataggregate expenditures exceed GDP
for a private closed economy aggregate expenditures consist ofc+Ig
when investment remains the same at each level of GDP in a private closed economy , the slope of the aggregate expenditures scheduleequals the MPC
Actual investment is 62 billion at an equilibrium output level is.10
if unintended increase in business inventories occur we can expecta decline in GDP and rising unemployment
in a private economy .... investment is equal to saving at all levels of GDP and equilibrium occurs only at the level of GDP where... investment is equal to savingactual; planned
In the aggregate expenditures model, equilibrium GDP IN A PRIVATE CLOSED ECONOMY IS INDICATED BYAll of the above
in the aggregate expenditures model, technological progress will shift the investment scheduleupward and increase aggregate expenditures.
at equilibrium real GDP in a private closed economy;aggregate expenditures and real GPD are equal
which of the following statements is correct for a private closed economysaving equals planned investment only at the equilibrium level of GDP
at the 180 billion equilibrium level of income saving is 38 billion in a private closed economy planned investment must be38 billion equilibrium level of income saving
saving is always equal toactual investment
actual investment isplanned investment plus unintended increases inventories
investment and savings are respectivelyinjections and leakages
imports have the same effect on the current size of GDPsaving
exports have the same effect on the current size of GDPinvestment
at the equilibrium GDP for an open economynet exports may be either positive or negative
other things equal if change in the tastes of consumers causes them to purchase more foreign goods at each level of US GDPUs GDP will fall
If net exports decline from zero to some negative amount the aggregate expenditures schedule wouldshift downward
if net exports are positveaggregate expenditures are greater at each level of GDP then when net exports are zero or negative
other things equal an increase in economy exports willincrease its domestic aggregate expenditures and therefore increase its equilibrium GDP
If the dollar appreciates relative to foreign currencies we would expecta country's net exports to fall
if a nation imposes tariffs and quotas on foreign products the immediate effect will be toincrease domestic output and employment
if the multiplier in an economy is 5, a 20 billion increase in net exports willincrease by 100 billion
if the equilbrium level of GDP in a private open economy is 100 billion and consumption is 700 billion at that level of GDP thenIg+Cn must equal 300 billion
an exchange rateis the price at that the currencies of any two nations exchange for one another
if the unitied states wants to increase its net exports it might take steps toincrease the dollar price of foreign currencies
other things equal serious recession in the economies of US trading partners willdepress real output and employment in the US economy
In a mixed economy the equilibrium GDP exists whereSa+M+T=Ig+X+G
other things equal, if 100 billion of government purchases G is added to private spending C+Ig+Xn...
in which of the following situation for a mixed economy will the level of GDP expandwhen Ig+X+G exceeds Sa+M+T
If a lump -sum income tax of 25 billion is levied and the and the MPS is .20 theconsumption schedule will shirft downward by 20 billion
Suppose the economy is operating at its ful employment noninflationary GDP and the MPC is .75 the federal government now finds that it must increase spending on military goods by 21 billion in response to deterioration in the international political situation to sustain full employment non inflation GDP government mustincrease taxes by 28 billion
a 1 increase in government spending on goods and services will have a greater impact on the equilibrium GDP that will 1 decline in taxes becausea portion of a tax cut will be saved
ignoring international trade in a mixed economy aggregate expenditures are comprised ofCa+Ig+Xn+G
if APC=.6 and MPC=.7 the immediate impact of an increase in personal taxes of 20 will be todecrease consumption by 14
when the public sector is added to the aggregate expenditures are modelwe add a new leakage in the form of taxes and a new injection in the form of government spending
the level of aggregate expenditures in a mixed open economy is comprised ofCa+Ig+Xn+G
in a mixed closed economytaxes and saving are leak ages while investment and government purchases are injections
an increase in taxes will have a greater effect on the equilibrium GDPthe larger the MPC
which of the following would increase GDP by the greatest amounta 20 billion increase in government spending
what do investment and government expenditures have in commonboth represent injection to the circular flow
taxes representa leakage of purchasing power like, savings
suppose government finds it can increase the equilibrium real GDP 45 billion by increasing government purchases by 18 billionMPS in the economy is .4
in the aggregate expenditures model, a reduction in taxes mayincrease saving
in the agregate expenditures model an in increase in government spending mayincrease output and employment
if a 20 billion increase in government expenditures increases equilibrium GDP by 50 billion thenthe MPC for this economy is .6
a lump sum tax mean thatthe same amount of tax revenue is collected at each level of GDP
equal increase in government purchases and taxes willincrease the equilibrium GDP and the size of that increase is independent of the size of the MPC
an inflationary expenditure gap is the amount by whichaggregate expenditures exceed the full employment level of GDP
cyclical unemployment in the US is essentially the consequence ofa deficient level of aggregate expenditures
the aggregate demand curveshows the amount of real output that will be purchased at each possible price level
the interest rate effect suggest thatan increase in the price level will increase the demand for money, increase interest rates, and decrease consumption and investment spending
the real balances effect indicates thata higher price level will decrease the real value of many financial assets and therefore reduce spending
the foreign purchases effect suggest that an increase in the US price level relative to other countires willincrease us imports and decrease us exports
the real balances interest rate and foreign purchases effects all help explainwhy the aggregate demand curve is down sloping
the factors that affect the amounts that consumers businesses governemtn and foreigners wish to purchase at each price level are thedeterminants of aggregate demand
Other things equal if the national incomes of the major trading partners of the US were to rise the USaggregate demand curve would shift to the right
other things equal a decrease in the real interest rate willexpand investment and shift AD curve to the right
a decline in investment will shift the AD curveleft by a multiple of the change in investment
and economy s aggregate demand curve shifts leftward or rightward by more than changes in initial spending becausemultiplier effect
the economy's long run AS curve assumes that wages and other resources priceseventually rise and fall to match upward or downward changes in the price level
the aggregate supply curbe (short run)is steeper above the full employment output than below it
monopoly or market power is the ability of a firm toset its price
other things equal a reduction in personal and business taxes can be expected toincrease both aggregate demand and aggregate supply
prices and wages ten to beflexible upward but inflexible downward
other things

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Views: 39
Asked: 2 years ago