This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Which of the following would result in GDP for an economy equal to 10 trillion? A) C = 7 trillion ... (Read 91 times)

Haya94

  • Hero Member
  • *****
  • Posts: 558
on: Jun 29, 2018
Which of the following would result in GDP for an economy equal to 10 trillion?
 
  A) C = 7 trillion
  I = 2 trillion
  G = 4 trillion
  NX = 3 trillion B) C = 6 trillion
  I = 2 trillion
  G = 1.5 trillion
  NX = -2 trillion C) C = 4 trillion
  I = 3 trillion
  G = 2 trillion
  NX = -1 trillion D) C = 5 trillion
  I = 5 trillion
  G = 2 trillion
  NX = -2 trillion

Question 2

Suppose real GDP is currently 12.5 trillion and potential real GDP is 13 trillion. If the president and Congress increased government purchases by 500 billion, what would be the result on the economy?
  .
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

aruss1303

  • Sr. Member
  • ****
  • Posts: 314
Reply #1 on: Jun 29, 2018
Answer to Question 1

D

Answer to Question 2

The economy would go from a short-run equilibrium below potential GDP to a short-run equilibrium above potential GDP. The increase in government purchases, which equals the shortfall in real GDP from potential real GDP, is too large. The increase in government purchases needs to be less than the shortfall in real GDP because of the multiplier effect.


Haya94

  • Member
  • Posts: 558
Reply 2 on: Jun 29, 2018
Wow, this really help

Jsherida

  • Member
  • Posts: 314
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

As the western states of America were settled, pioneers often had to drink rancid water from ponds and other sources. This often resulted in chronic diarrhea, causing many cases of dehydration and death that could have been avoided if clean water had been available.

Did you know?

On average, someone in the United States has a stroke about every 40 seconds. This is about 795,000 people per year.

Did you know?

Certain rare plants containing cyanide include apricot pits and a type of potato called cassava. Fortunately, only chronic or massive ingestion of any of these plants can lead to serious poisoning.

Did you know?

About 60% of newborn infants in the United States are jaundiced; that is, they look yellow. Kernicterus is a form of brain damage caused by excessive jaundice. When babies begin to be affected by excessive jaundice and begin to have brain damage, they become excessively lethargic.

Did you know?

For about 100 years, scientists thought that peptic ulcers were caused by stress, spicy food, and alcohol. Later, researchers added stomach acid to the list of causes and began treating ulcers with antacids. Now it is known that peptic ulcers are predominantly caused by Helicobacter pylori, a spiral-shaped bacterium that normally exist in the stomach.

A melanistic jaguar at the Henry Doorly Zoo. Melanism is the result of a dominant allele and remains A melanistic jaguar at the Henry Doorly Zoo. Melanism is the result of a dominant allele and remains
The monthly changes of angle between the direction of illumination by the Sun and viewing from Earth The monthly changes of angle between the direction of illumination by the Sun and viewing from Earth
The National Organization for Women holds a rally in Illinois for the Equal Rights Amendment. In ... The National Organization for Women holds a rally in Illinois for the Equal Rights Amendment. In ...
Failure of the Equal Rights Amendment, 1972–1982 Failure of the Equal Rights Amendment, 1972–1982
Drug A is more potent than Drugs B and C. Drugs A and C have equal efficacy because both drugs have ... Drug A is more potent than Drugs B and C. Drugs A and C have equal efficacy because both drugs have ...
Production of prototrophs as a result of genetic recombination Production of prototrophs as a result of genetic recombination
Video: Calvin Cycle Explained!

For a complete list of videos, visit our video library