The graphs illustrate an initial equilibrium for the economy. Suppose that the government cuts taxes.
Use the graphs to show the new positions of aggregate demand (AD), short‑run aggregate supply (SRAS), and long‑run aggregate supply (LRAS) in both the short run and the long run, as well as the short‑run and long‑run equilibriums resulting from this change. Then, indicate what happens to the price level and real GDP (or aggregate output) in the short run and in the long run.
In the short-run, the price level __________ and GDP __________.
In the long-run, the price level __________ and GDP __________.
WORD BANK
increases
decreases
stays the same
Answers
Answer:
In the short-run, the price level increases and GDP increases.
In the long-run, the price level increases and GDP stays the same.
Explanation:
When the government cuts taxes, consumers have more disposable income and increase spending. This shifts the AD curve to the right.
Short run: Neither the SRAS nor LRAS curves shift in the short run in response to the increase in aggregate demand. The new equilibrium point is the intersection of the shifted AD curve with the SRAS curve.
Long run: The aggregate demand increase looks the same on the long‑run graph as it does on the short‑run graph. As the higher price level causes expectations to change, the SRAS curve then shifts such that it intersects the AD and LRAS curves at the same point. As was the case in the short run, the LRAS curve itself does not move, as it only shifts when the economy's potential output changes due to factors like technological progress.
The long‑run equilibrium point is then the intersection of AD, SRAS, and LRAS.
The graphs show the economy's initial equilibrium. Let's say the government lowers taxes. The price level and GDP both rise in the short term. In the long run, prices rise but GDP stays constant.
What is government?The term government refers that the system which was governed by a state or a country in it, we see there are different governments are being there in states the government is made by the people and govern for the people also in it. There is a system being made and under the system, the government is being run.
When taxes are reduced by the government, customers have more money to spend. The AD curve is moved to the right as a result. Short run: In the short term, the increase in aggregate demand has no effect on either the SRAS or LRAS curves
Therefore, The graphs show the economy's initial equilibrium. Let's say the government lowers taxes
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Related Questions
Consider the information about the economy of Pakistan. Note that the currency of Pakistan is the rupee.
The government purchases: 2.60 trillions of rupees.
Individuals consume: 11.50 trillions of rupees.
Individuals save: 5.54 trillions of rupees.
Businesses invest: 1.35 trillions of rupees.
Foreigners spend: 0.57 trillions of rupees to purchase Pakistani firms.
Pakistan imports: 2.00 trillions of rupees.
Pakistan exports: 1.24 trillions of rupees.
Calculate Pakistan's GDP. Assume that the values are all current and no conversions need to be made. Give your answer in terms of trillions of rupees, and round to two decimals.
Pakistan's GDP: ___________________ trillions of rupees
Answers
Answer:
Pakistan's GDP = 14.69 trillions of rupees
Explanation:
Gross domestic product is the total value of all final goods and services produced in a country. In this question, savings and foreign purchases of businesses were distractors. Since GDP is a measure of the production of an economy, you only include final goods and services. While savings and foreign investment are important to any economy, they are not final goods and services.
Pakistan's GDP = Individual consumption + Businesses invest + Government purchases + Net exports
Pakistan's GDP = 11.50 + 1.35 + 2.60 + (1.24 - 2.00)
Pakistan's GDP = 11.50 + 1.35 + 2.60 - 0.76
Pakistan's GDP = 14.69 trillions of rupees
what is the most serious threat to biodiversity
Answers
Answer: Climate change was ranked as a 6% risk to Earth's biodiversity. WWF's Living Planet Report 2020 has ranked the biggest threats to Earth's biodiversity. The list includes climate change, changes in land and sea use and pollution. The WWF used data from over 4,000 different species.
Explanation:
I hope that that’s the answer you were looking for
One of the key underpinnings of public choice analysis is the assumption that politicians and bureaucrats
make political decisions based on self‑interest, just as individuals and firms do.
make political decisions based primarily on benefiting future generations.
seek only to maximize long term economic growth through increasing GDP.
act not out of self‑interest but desire to increase the general utility of the public.
Answers
Answer:
a. make political decisions based on self‑interest, just as individuals and firms do.
Explanation:
Public choice analysis is the combination of political science and economics and analyzes political decision making. One key assumption of public choice theory is that politicians are rational, self‑interested, economic agents. Like all other economic agents, they make decisions based on their own self‑interest (specifically, to satisfy constituents and retain their positions). It leads to rise of interest groups, logrolling and rent seeking behavior from the politicians and bureaucrats which leads to inefficiency.
Select all the correct answers.
What are two reasons why the US government sent expeditions into the Louisiana Territory in the 1800s?
The government wanted to learn about the strength of the French military in the area.
A: At that time, many Americans traveled there to search for gold and precious stones.
B: At that time, Americans knew very little about the geography of the area.
C: The government wanted to establish friendly ties with American Indians there.
D: The government wanted to prepare for a coming war against Great Britain.
Answers
Answer:
B. I do not know the second one
Explanation:
it makes sense that americans knew very little about the area at the time since they had just bought the territory
The boundary between the Pacific Plate and the Australian Plate is a transform boundary. What event is likely to occur at this boundary?
Answers
Answer:
seafloor spreading
Explanation:
When members of a family system are over involved with each other's affairs and are over concerned with the details of each other's lives, they are said to be:
Answers
An enmeshed family is a kind of family system where family members are usually involved with each other's affairs.
What is an enmeshed family ?An enmeshed family serves as the type of the family system that are mote concerned about the affairs and well being of each other.
Therefore, enmeshed family usually look out for each other and care about each other.
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How does a resource change if it is considered to be scarce?
Answers
Answer:
Explanation:
Because the more resources a company or someone wants it will eventally be limited or run out, as you used up all the resources.
Monopolies are usually harmful to economies because they:
Answers
How are oceans important to human beings?
Answers
Answer:
ocean give benefits such as swimming and catching fish and also they can move boats and go to islands and explore hope it helps. :)
Explanation:
what do you do to protect the heritage in your community? write any one activity.
Answers
Answer:
creating public awareness among the people about the importance Heritage.
Lilliput is a country that has closed borders and does not import or export any goods or services; hence, they do not worry about trade with other countries.
Total spending for the federal government of Lilliput for the last fiscal year was $24.19 billion. The country collected $22.9 billion in taxes during this same fiscal year. Assume government transfers were zero.
Based on this information, what is Lilliput's budget balance? Enter your answer to two decimal places.
budget balance: $_____________ billion
In the last fiscal year, Lilliput was running
a. a balanced budget
b. a budget deficit
c. a budget surplus
Answers
Answer:
$ -1.29 billion
b. a budget deficit
Explanation:
Subtracting Lilliput's federal revenues (taxes equaling $22.9 billion) from spending (expenditures equaling $24.19 billion) gives
federal revenue − federal spending − federal transfer payments = $22.9 billion − $24.19 billion = −1.29 billion
When tax revenue exceeds government spending, there is a budget surplus. When spending exceeds taxes, the country runs a budget deficit. When spending is equal to tax revenue, the budget is said to be balanced.
In this case, there is a budget deficit.
Theodosius left a will instructing the Romans to do what after his death?
Answers
Answer:
He decided to have the Roman Empire divided.
Explanation:
What do the 20 towns that Saleemul Huq plan have in common
Answers
Answer:They have at least 1 million residents
Explanation:
The 20 towns that the Saleemul Huq plan has in common is the approximate population that was present in that region.
What is Saleemul Huq's plan?The Least Developed Countries' participation in the United Nations Framework Conference on Climate Change is now being supported. He is looking into the effects of adaptation strategies and how vulnerable countries with little development are to climate change.
About 20 subsidiary towns across the nation with a present count of around 500,000 could each take in another 500,000 migrants and a program is being developed to transform these secondary places into climate-resilient, immigrant-friendly communities. This was the most common thing that was presented in the region of these 20 towns under the plan.
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how to make people to follow rules
Answers
Answer:
[tex]There \: is \: a \: way \: to \: follow \: rules \: effectively \\ without \: resorting \: to \: breaking \: them.[/tex]
Be guided by values. Values are the principles that guide our behaviour, attitudes and actions. ...Tweak the rules to suit you. Sometimes we follow rules too strictly because we are afraid to question them. ...Simplify. ...Be Authentic. ...Conclusion.Heyyy Guyssss !!
What are the advantages of industry ?
Answers
Faster manufacturing.
Less machine and production line downtime.
Fewer quality issues with products.
Explanation:
Growth of industries leads to increase in production of goods and services which are available to people at cheaper rates.It reduces dependence on other countries and improves economy.It reduces dependence on other countries and improves economy.It results in rising the standard of living.It reduces dependence on other countries and improves economy.It results in rising the standard of living.It creates new job opportunities helping in the removal of unemployment.For the U.S. government, which of the given is NOT an example of discretionary spending?
a. Medicare
b. defense spending
c. science spending
d. Medicaid
For the U.S. government, which of the given is NOT an example of mandatory spending?
a. education spending
b. interest on the national debt
c. Social Security
d. Medicare
Which type of spending currently takes up a larger proportion of the U.S. federal budget?
a. Mandatory spending and discretionary spending take up an equal amount.
b. mandatory spending
c. discretionary spending
Answers
Answer:
- Medicare
- Education spending
- Mandatorym spending
Explanation:
Discretionary spending is subject to an annual appropriation process by Congress. In contrast, mandatory spending is authorized by permanent laws and therefore can not be easily changed.
The answer to the first question is that Medicare is not a type of discretionary spending. Medicare is a type of mandatory spending. Discretionary spending includes defense, science, income security (including Medicaid), transportation, environment, education, veterans' benefits and services, etc.
The answer to the second question is that education spending is not a type of mandatory spending. Spending on education is a type of discretionary spending. Mandatory spending includes Medicare, Social Security, interest on the national debt, food stamps, TANF (temporary assistance for needy families), etc.
The answer to the last question is that the majority of the budget is spent on mandatory spending items. Mandatory spending accounts for about 60%, whereas discretionary spending accounts for about 40%.
Philosophy of Mind studies only the brain and
how it affects the body and the outside physical
world.
O True
False
Answers
Philosophy of mind is the philosophical study of the nature of the mind, mental events, mental functions, mental properties, and consciousness, and of the nature of their relationship with the physical body: the so-called mind-body problem.
No, the philosophy of Mind does not studies only the brain and how it affects the body and the outside physical world. So, the correct answer is False
A subfield of philosophy called philosophy of mind investigates the nature and ontology of the mind as well as how it interacts with the body. The hard problem of consciousness and the nature of particular mental states are addressed, but the mind-body dilemma is a paradigmatic topic in philosophy of mind. The mind's ontology, the nature of cognition and thought, and the connection between the mind and body are some of the aspects of the mind that are being explored. Other aspects of the mind that are being examined are mental events, mental functions, and mental qualities.
The brain is not the only element that is explored in the philosophy of mind, but it is unquestionably a significant component.
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High Power Distance Index countries are more egalitarian than low Power Distance Index countries. Group of answer choices True False
Answers
It is a false statement that the High Power Distance Index countries are more egalitarian than low Power Distance Index countries.
What is the difference between the two countries?
A High Power Distance country have a culture that gives great deference to a person of authority while the Low Power Distance country have a culture that values the equal treatment of everyone.
Hence, it is false that the High Power Distance Index countries are more egalitarian than low Power Distance Index countries because both country priotize people having a equal rights and opportunities.
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Subject: Economic
Answers
Answer:
C. Managing inflation
Explanation:
✓ Open market operations are the key means by which a central bank controls inflation, money supply, and prices.
✓ Hopefully this helps you!
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Answer:
It is determining tax rates, but also preventing recession.
Explanation:
Central banks are responsible for overseeing the monetary system for a nation (or group of nations), along with a wide range of other responsibilities, from overseeing monetary policy to implementing specific goals such as currency stability, low inflation, and full employment.
The Federal Reserve acts as the U.S. central bank, and in that role performs three primary functions: maintaining an effective, reliable payment system; supervising and regulating bank operations; and establishing monetary policies.
Classify the events according to their impact on aggregate demand (AD).
1. A dramatic decline in the average price of houses will _____________.
2. Increased concern that a recession is looming will _____________.
3. An announcement by the central bank to maintain its existing monetary policy will _____________.
4. A reduction in government spending will _____________.
5. A dramatic improvement in the stock market, causing investors' wealth to rise, will _____________.
6. A recession occurring in a trading partner's economy will _____________.
7. An increase in income tax rates on individuals earning more than $450,000 per year will _____________.
WORD BANK
not change AD.
increase AD.
decrease AD.
Answers
Answer:
1. decrease AD.
2. decrease AD.
3. not change AD.
4. decrease AD.
5. increase AD.
6. decrease AD.
7. decrease AD.
Explanation:
Aggregate demand (AD) measures the total amount of spending that occurs in an economy and can be segmented into consumption spending, government spending, investment spending, and net exports. A key principle in this example is that AD increases when there are increases to any of these individual components of AD and decreases when the individual components decrease.
Several of the events in this example describe direct changes in the components of AD:
- A reduction in government spending leads to a decline in AD as it is associated with fewer goods and services being purchased.
- An increase in tax rates reduces disposable income and therefore causes consumption spending to decline.
- When recessions occur abroad, foreigners purchase fewer imported items. (e.g., a recession in Europe means that American firms will export less to Europe.) Thus, net exports decline as trading partners experience recessions, which causes AD to fall.
- Consumer confidence also impacts spending in that people are more inclined to make purchases when feeling optimistic and more inclined to save when feeling concerned about the economy.
- Wealth is another factor that affects AD. People buy more goods and services when they have more wealth and vice versa. Therefore, an increase in wealth associated with rising stock prices increases AD, whereas falling wealth from declining housing prices reduces AD.
- Changes in the money supply also can lead to AD shifts. When the money supply grows more rapidly, there are increases in spending and the AD shifts to the right, and vice versa. In this example, growth in the money supply is said to be stable, implying that AD will neither increase nor decrease.
Classify each example as either relating to human capital, physical capital, or technology.
- An increase in adult literacy affects
- An increase in the number of company cars impacts
- An increase in the number of college graduates impacts
- New distribution techniques affect
- An increase in the number of company computers affects
- More people graduating from culinary school affects
- A new cancer treatment affects
- A doctor's knowledge about a new cancer treatment affects
WORD BANK
physical capital.
human capital.
technology.
Answers
Answer:
1. human capital.
2. physical capital.
3. human capital.
4. technology.
5. physical capital.
6. human capital.
7. technology.
8. human capital.
Explanation:
Human capital refers to the knowledge, skills, experiences, capabilities acquired by an individual inorder to the productivity. Physical capital refers to those inputs that contribute in the production process. It basically means the factors of production like land, building, machinery, etc. Technology refers to research, innovations and development. In other words, it means innovating something new.
Human capital is the knowledge and ability that workers have that allow them to perform their job or to perform it better. Some examples of human capital are the knowledge obtained through various types of education and training as in the case of more college graduates, individuals going to culinary school, adult literacy, and doctors learning about a new way to treat cancer.
Physical capital consists of those physical resources that are used in production but that are not inputs in production. Examples of these are company computers and company cars that presumably enhance workers' ability to perform their tasks.
Technology consists of the processes by which capital is employed in the production process. For example, improvements in a distribution process or in cancer treatments are both examples of technologies.
Suggest a way to produce skilled human resource in your school,
Answers
Answer: Some of the measures to produce skilled human resources in the country are:-
Providing practical and quality education to all.
Developing technical and vocational education system according to the need of the country.
Updating knowledge with developed information technology.
Formulating scientific education policy as per the demand of time.
By applying these measures a country can produce skilled human resources to utilize the natural means and resources for the development.
I hope this answer helped you! ^-^
Explanation:
Why might some african countries use a European language as "trade language”?
Answers
They answer is because they are forced to.
It is a more common language. The country is still a colony.
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Explain the difference between a mixed market economy and a mixed command economy
Answers
The economic system is fully controlled by the government, while the economic system is controlled by the private sector and the government.
I hope this help
South World has a total debt of $10 million and an annual GDP of $5 million. It currently pays 4% interest on its debt every year. What percentage of annual GDP does interest on the debt represent?
4%
50%
15%
8%
Answers
$10 million x 0.04 = $400,000
$400,000/$5,000,000 = 0.08
$400,000 is 8% of the annual GDP of $5 million
This is a massive ball of plasma that shines because of thermonuclear fusion
Answers
Answer:
star
Explanation:
huge ball of ionized gas (plasma) producing energy (light) by nuclear fusion. The visible surface of the sun (photosphere) is ~5700K. An object at this temperature emits most of its. energy as visible light
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The table shows the cost of a fixed basket of goods that a typical urban consumer would buy in the economy of Kindleberger. The base period for the consumer price index (CPI) is the year 2000. Please specify answers to two decimal places.
CPI for 2000: ___________
CPI for 2011: ___________
CPI for 2012: ___________
Answers
Answer:
CPI in 2000 = 100
CPI in 2001 = 132.53
CPI in 2002 = 186.14
Explanation:
Cost of a basket of goods in the base year (2000) = $4,150.
So, CPI in 2000 = Cost of basket in 2000 * 100 / Cost of basket of goods in base year
= 4150* 100 / 4150
CPI in 2000 = 100
CPI in 2001 = Cost of basket in 2001* 100 / Cost of basket of goods in base year
= 5500 * 100 / 4150
CPI in 2001 = 132.53
CPI in 2002 = Cost of basket in 2001* 100 / Cost of basket of goods in base year
= 7725* 100 / 4150
CPI in 2002 = 186.14
HELP ASAP-WILL GIVE BRAINLIEST-NO FILES
How did voting in ancient Rome change over time?
A. Citizens started to vote on what was best for the whole of the Roman Empire.
B. Citizens only voted for what was best for the community
C. Citizens were required to vote based on the needs of others and not themselves.
D. Citizens began to vote based on self interest or what was best for themselves.
Answers
Answer:
D
Explanation:
What is the capital of New Mexico? (3 points)
a
Santa Fe
b
Salem
c
Austin
d
Juneau
Answers
the capital of new Mexico is
Explanation:
Santa Fe
Answer:
What is the capital of New Mexico?
Explanation:
Santa Fe
Suppose a country is projecting a deficit of $20 million next year. Which of the following events would add most to the debt?
an increase in the deficit of $500,000
a 3% rise in the interest rate
an increase in tax revenues of $600,000
all of the above would increase the debt by the same amount
Answers
A 3% increase in the interest rate would add $600,000 to the deficit and thus to the debt. This exceeds a $500,000 increase in the deficit, while tax revenues would decrease, not increase, the debt.