Business
Business, 29.07.2019 17:50, daryondaniels28

The government decides to reduce its expenditure by $250. the multiplier in this economy is 4 and the tax rate is 22 percent. the net effect of this contractionary fiscal policy is to:

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Business, 22.06.2019 18:50, saltytaetae
Suppose the government enacts a stimulus program composed of $600 billion of new government spending and $300 billion of tax cuts for an economy currently producing a gdp of $14 comma 000 billion. if all of the new spending occurs in the current year and the government expenditure multiplier is 1.5, the expenditure portion of the stimulus package will add nothing percentage points of extra growth to the economy. (round your response to two decimal places.)
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Social Studies, 27.09.2019 20:10, keldrykmw4
Prior to the congressional and presidential actions, careful studies by government economists indicated that the direct multiplier effect of a rise in government expenditures on equilibrium real gdp is equal to 6. in the 12 months since the increase in government spending, however, it has become clear that the actual ultimate effect on real gdp will be less than half of that amount. this could have happened because of all the following except a. direct expenditure offset. b. a supply-side effect. c. an indirect crowding out. d. a short-run increase in the price level.
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