answer

watching

views

16 May 2018

Aggregate expenditure is the total amount of spending in the economy that determines the level of the GDP. Components of aggregate expenditure are autonomous expenditure, planned private investments, government expenditure, and net exports. When autonomous expenditure increases or decreases, it has a multiplied effect on the GDP.

Referring to the 10-year historical period that you chose for your final project,( i choose Korean War and Vietnam War.). discuss an example of a change in autonomous spending. Research a government policy implemented during that time and discuss the multiplier effect it had on the economy.

answer

watching

312

views

For unlimited access to Homework Help, a Homework+ subscription is required.

You have 0 free answers left.
Get unlimited access to 3.8 million step-by-step answers.

Get unlimited access

Already have an account? Log in

Sixta KovacekLv2

19 May 2018

Unlock all answers

Get 1 free homework help answer.

Already have an account? Log in

Related questions

Aggregate expenditure is the total amount of spending in the economy that determines the level of the GDP. Components of aggregate expenditure are autonomous expenditure, planned private investments, government expenditure, and net exports. When autonomous expenditure increases or decreases, it has a multiplier effect on the GDP.

Referring to the 10-year historical period that you chose for your final project, discuss an example of a change in autonomous spending. Research a government policy implemented during that time and discuss the multiplier effect it had on the economy.

I have chosen 1980-1989 in the US.

fuchsiaoyster268

True or False Questions:

1. Recessionary Expenditure Gap- Aggregate expenditures by which aggregate expenditures at the full employment GDP falls short of those required to achieve full employment GDP.

2. Private Closed Economy- An economy that includes consumer, business, and government segments of the economy.

3. Lump-sum taxes- A tax of a constant amount so the government obtains the same amount of tax at each level of GDP.

4. Aggregate Supply schedule- A relationship between a nation's price level and the amount of real domestic output that is produced.

5. Real Rate of Interest effect- The Nominal Rate of Interest earned on a project.

6. Savings- savings are planned investments by the consumer.

7. Wealth effect- The dollar amount of all the assets owned minus the dollar amount of all the liabilities or debt.

8. Savings Schedule - GDP less investment = savings

9. Aggregate Demand Schedule- a schedule that shows the amount of a nation's output (real GDP) that buyers desire to purchase at each price level.

10. Productivity- The measure of the level of the nation of real output and the amount of resources used to produce the output, less labor cost.

11. Multiplier effect- Measures the change in GDP to spending.

12. Injection- Investment by private business into the economy for capital goods is and injection into the economy.

13. Consumption schedule- The measurement of Disposable income less savings.

ceruleanotter437

1. In an economy with no foreign trade and a marginal propensity to consume of 0.8, which of the following will be true?

a. If taxes are increased by $100M, GDP will decrease by $500M.

b. If autonomous consumption increases by $50M, GDP will increase by $200M.

c. If both taxes and government spending increase by $100M, GDP will increase by $250M.

d. If taxes are decreased by $100M, GDP will increase by $400M.

e. If autonomous consumption decreases by $100M, GDP will decrease by $800M.

2. Looking at the circular flows model, how can the saving equals investment equation be derived?

a. By looking at flows into and out of goods markets

b. By looking at flows into and out of financial markets

c. By looking at flows into and out of households

d. By looking at flows into and out of firms

e. By looking at flows into and out of the government

3. What will be the short-run effect of a 10% increase in the money supply for an economy operating in the Keynesian portion of the aggregate supply curve?

a. Real GDP will increase by 10% if velocity doesn't change.

b. Real GDP and the price level will both increase by 5% if velocity doesn't change.

c. Real GDP won't change, but the price level will increase by 10% if velocity doesn't change.

d. Velocity will fall by 5%, the price level will increase by 5%, and real GDP won't change.

e. According to the quantity theory of money, velocity will fall by 10%, and nothing else will change

4. Which of the following will make monetary policy more effective in changing nominal GDP?

a. A fixed velocity of money

b. A flat investment demand curve

c. A high marginal propensity to save

d. A money demand curve that is very flat

e. An aggregate expenditure curve that is very flat

amethystworm634

Weekly leaderboard

Home

Homework Help 3,900,000

Economics 400,000

Unlock all answers

Related textbook solutions

Principles of Economics

Principles of Macroeconomics

Principles of Microeconomics

Related questions

Related Documents

ECO100Y5 Chapter Notes - Chapter 11: Consumption Function, Keynesian Cross, Inventory Investment

ECO 2013 Lecture Notes - Lecture 10: Real Interest Rate, Price Level, Government Spending

ECO100Y5 Chapter Notes - Chapter 11: Consumption Function, Inventory Investment, Keynesian Cross

Weekly leaderboard