How would an increase in taxes influence the size of the multiplier in a four sector model ​

Answers

Answer 1

Answer:

Explanation:The Multiplier Effect

The Keynesian policy prescription has one final twist. Assume that for a certain economy, the intersection of the aggregate expenditure function and the 45-degree line is at a GDP of 700, while the level of potential GDP for this economy is $800. By how much does government spending need to be increased so that the economy reaches the full employment GDP? The obvious answer might seem to be $800 – $700 = $100; so raise government spending by $100. But that answer is incorrect. A change of, for example, $100 in government expenditures will have an effect of more than $100 on the equilibrium level of real GDP. The reason is that a change in aggregate expenditures circles through the economy: households buy from firms, firms pay workers and suppliers, workers and suppliers buy goods from other firms, those firms pay their workers and suppliers, and so on. In this way, the original change in aggregate expenditures is actually spent more than once. This is called the multiplier effect: An initial increase in spending, cycles repeatedly through the economy and has a larger impact than the initial dollar amount spent.

HOW DOES THE MULTIPLIER WORK?

To understand how the multiplier effect works, return to the example in which the current equilibrium in the Keynesian cross diagram is a real GDP of $700, or $100 short of the $800 needed to be at full employment, potential GDP. If the government spends $100 to close this gap, someone in the economy receives that spending and can treat it as income. Assume that those who receive this income pay 30% in taxes, save 10% of after-tax income, spend 10% of total income on imports, and then spend the rest on domestically produced goods and services.

As shown in the calculations in Figure B.10 and Table B.4, out of the original $100 in government spending, $53 is left to spend on domestically produced goods and services. That $53 which was spent, becomes income to someone, somewhere in the economy. Those who receive that income also pay 30% in taxes, save 10% of after-tax income, and spend 10% of total income on imports, as shown in Figure B.10, so that an additional $28.09 (that is, 0.53 × $53) is spent in the third round. The people who receive that income then pay taxes, save, and buy imports, and the amount spent in the fourth round is $14.89 (that is, 0.53 × $28.09).

The graph shows the multiplier effect as a rapidly upward-sloping line that levels at $200 and continues as a straight, horizontal line.

Figure B.10. The Multiplier Effect.  An original increase of government spending of $100 causes a rise in aggregate expenditure of $100. But that $100 is income to others in the economy, and after they save, pay taxes, and buy imports, they spend $53 of that $100 in a second round. In turn, that $53 is income to others. Thus, the original government spending of $100 is multiplied by these cycles of spending, but the impact of each successive cycle gets smaller and smaller. Given the numbers in this example, the original government spending increase of $100 raises aggregate expenditure by $213; therefore, the multiplier in this example is $213/$100 = 2.13.


Related Questions

what is व्यावहारिक जीवन​

Answers

Answer:

"व्यावहारिक जीवन" असे एक क्षेत्र आहे जे मॉन्टेसरीने मुलांसाठी सामान्य क्रिया, जे दैनंदिन जीवनातील क्रियाकलाप शिकण्यास शिकविले आहे. या क्रियाकलापांसह, मुले 5 क्षेत्रात कौशल्ये आत्मसात करतात: व्यक्तीची काळजी घेणे, पर्यावरणाची काळजी घेणे, कृपा व शिष्टाचार, शांतता आणि रेखा.

mention five reasons for cooking food​

Answers

Answer:

to eat

stay healthy

so you don't starve

to grow

to be strong

Explanation:

Answer:

to live and stay healthy

to give your brain and body energy

some aspects of some religions and cultures involve food and making food when celebrating and/or worshiping for things

some people use cooking food to express themselves like an art form? or makes themselves happy

psychologically eating some foods you like can make you happy i guess

you can also cook foods from other countries or cultures to learn about them

Explanation:

VII.निम्नलिखित वाक्यों में रंगीन शब्दों
के पद भेद लिखिए | 6x1/2=3
1. सड़क पर कोई भाग रहा है ।
2. रोहित अपने-आप पेड़ पर चढ़
गया।​

Answers

की कृपा करे एक विशिष्ट प्रश्न दें

आपका दिन अच्छा रहे

:) *-*

When an author writes a blog post reviewing a particular product, what is the most likely purpose behind this writing?
A. To persuade
B. To entertain
C. To sell
D. To inform

Answers

C. Is the answer


A would not fit because the author will have to have a valid claim and counterclaim which would be mostly found in essays and not reviews

B if you are entertained by reading a product review then good for you

D you usually don’t gain much information when you’re reading a particular product review

at first Wyatt is answer

Answers

Answer:

What are all the options you have? I know surprised is one but what are the others?

Explanation:

What is Zeus's Greek name?

Answers

Answer:

i think u mean roman , if u do, its Jupiter or Jove.

Explanation:

food sustain the christian prayer our father'' (the lord prayer emphasizes this. how will you explain this​

Answers

Answer:

Being provided with food is part of the essential care of a person. This is vital for existence. As God is our father, we (can) ask him to be always fed. This is why the request for our "daily bread" is included in the prayer.

Explanation:

The best example is when Jesus took a couple of pieces of bread, fish and wine and was able to feed the whole village, and then some. Taking care of everyone, as a father would.

Question 5
Ulysses gave Polyphemus the wine in order to get him drunk and sleepy.
True
False

Answers

I think the answers is false

Which event solves the main problem?

Answers

Answer:

the miller gets a job as the towns best standup ckmedian

Scrie sinonime pentru urmatoarele cuvinte si grupuri de cuvinte: vrednic, impleteste, de-ale gurii, galceava, s-a milostivit, blanda

Answers

Answer:

fetus

Explanation:

discribe the interelationship of various fields of study related to foods?​

Answers

Answer:

The major areas within the food science and technology fields include food chemistry, food microbiology, sensory and consumer sciences, food engineering, quality assurance, innovation, nutrition and regulation.

im 14 and u can only be 11 and up to be mine what am i

Answers

Answer:

teen

Explanation:

is anyone else a middle schooler around the age 11-13 lives in moreno valley CA plays video games listens to music cusses ALOT has a weird fashion sense? o.O does anyone want to be my friend xD ^-^

Answers

Answer: fr though why would you give out all that info

Explanation: go back to internet safety classes...

3 bedroom flat on Vasna Road write advertisement

Answers

Isn’t it supposed to be in the English section ?

Describe what is tragic about the children and what is comic.

Answers

Answer:

Speak in a calm voice using words your child understands. Explain what happened and that you will keep caring for them. For older children, use gentle words and offer comfort. Encourage them to share any worries. And Comics is a medium used to express ideas with images, often combined with text or other visual information. It typically takes the form of a sequence of panels of images. Textual devices such as speech balloons, captions, and onomatopoeia can indicate dialogue, narration, sound effects, or other information.

Realizați expansiunea complementelor sublinate din enunțurile ce urmează, precizând tipul subordonatei obținute. L 0 1 2 3 4 5 6
a) Eu prefer petrecerea timpului pe malul mării. bine........................................................................................
b) Buneii mei sunt mândri de rezultatele mele. . .......................................................................................... Va rog Frumos imi trebuie acum , dau coroana.

Answers

Answer:

Explanation:

Expansiunea:

Complement circumstantial de cauza→subordonata circumstantiala cauzala (de ce? din ce cauza?)

1) Fiindca era suparat, s-a retras intr-un colt al camerei.

2) Nu plange de tristete, intrucat este bucuros.

3) Deoarece invata mereu, i-a fost usor la examen.

4) Pentru ca erau ceilalti, am pierdut meciul.

5) Caci era multa galagie, nu am auzit sunand la usa.

How did Malala FIRST LEARN that she had been targeted by the Taliban?

Answers

Answer:

Malala began her fight for girls — from an education activist in Pakistan to the youngest Nobel ... But everything changed when the Taliban took control of our town in Swat

Explanation:

a) Round 1.7802 to 1 significant figure.
b) Round 0.051866 to 2 significant figures.
c) Round 6.071981 to 3 significant figures.
d) Round 0.00208815 to 3 significant figures.​

Answers

a) 2
b) 0.052
c) 6.07
d) 0.00209

My mother on tuesday inquired about my school's recent uniform policy. On tuesday, my mother inquired about my recently changed schools uniform policy. On Tuesday, my mother inquired about my school's recently changed uniform policy

Answers

Answer:

On Tuesday, my mother inquired about my school's recently changed uniform policy

Explanation:

When asking a question, how does a person’s voice change?
a.
A person will often increase volume when asking a question.
b.
A person will often change the pitch of their voice when asking a question.
c.
A person’s voice does not usually change when asking questions.
d.
A person is likely to lower their volume when asking a question.

Answers

Answer:

B

Explanation:

Someone doesn't get LOUDER or increase their volume when asking a question, their voice gets HIGHER or changes the pitch when they ask a question. also, the file answers are scams.

Answer:

B! Most people will have their inflection change with a question, making the pitch higher and indicating that it's a question to the observer!

English is one language spoken in south asia due to

Answers

economy and that’s is because of whatever reason you want

What is the language of Dubia

Answers

The official language of the United Arab Emirates is Arabic. Modern Standard Arabic is taught in schools, and most native Emiratis speak a dialect of Gulf Arabic that is generally similar to that spoken in surrounding countries.

Answer:

the most common language in dubai is Arabic :)

Directions: Argue for or against the statement below using a formal argument. In a formal argument, you must: 1) State your position. 2)Provide point(s) that support your position. 3)Support each point with specific reasons/examples.

Example Answer: The statement practice makes perfect is accurate. Research has shown that practice is more important that talent in gaining expertise. People with just a little natural talent can gain mastery with daily practice and the desire to improve their performance. For example, by practicing writing everyday, there is a good chance that your writing will drastically improve. However, all the practice in the world cannot instill passion for an activity a person doesn’t like. So, while practice can improve performance, it cannot replace the desire to do well.

Answers

The correct answer to this open question is the following.

We assume that the topic is the same as the one used in the example. There are no other topics attached.

So if that is teh case, here is our argument.

1) State your position.

It is true that practice is more important than talent in gaining expertise. However, if you want to accomplish big things in your field, you have to not only practice but to acquire new talents, abilities, and skills that help you overcome adversity and defeat your rivals and competitors.

2)Provide point(s) that support your position.

Practice makes perfect. Practice is the key to mastery. But in order to be a master, you better have first a series of talents and abilities as the foundation of your expertise.

3)Support each point with specific reasons/examples.

You can practice hard and every day. But when you compete against more talented people, talent matters.

You can see this in everyday life. Let's put the example of sports. College football.

Most players are talented. Most of them practice hard and are well-coached. However, on game day, the most talented teams win. This is not a law. But it usually happens.

That is why practice is a must. But then it comes to the acquisition of new skills, abilities, more studying time, watching videos of your rivals, invests more time in strength and condition, and more. So when it is time to compete against more talented people, you have other tools and talents acquired to better have a good chance to be successful.

What is “Father” in Japanese ?

Answers

Answer:

otōsan is father injapanese

Answer:

otousan お父さん some people say ぱぱ

Explanation:

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.

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.

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.

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.

8. If Kerry pushed on an elephant, she would be using
(1 Point)
mass
acceleration
force

Answers

Answer:

Force

Explanation:

Acceleration would follow the initial force that she is using to push. The mass doesn't have much to do with this question.

Write a short story with these

Answers

write a story with what? there is no picture, words, or anything

‘ Jya Swachta, Tya Prabhuta’ nibandh lakho (10-15 lines) (in Gujarat)
Will mark Brainliest...
Pls fast!!!

Answers

Explanation:

zgu-qkgr-bmp

come

fast

girls

on

Librum novum legere volunt.

They want to read the new book.
He wants to read the new book.
We want to read the new book.
I want to read the new book.

Choose the correct translation for the verb non vīs.

you (pl) do not want
you (s) do not want
he does not want
they do not want

Choose the correct translation for the verb possum.

I am able
we are able
you (s) are able
they are able

Choose the correct translation for the verb volumus.

they want
I want
he wants
we want

Choose the correct translation for the verb īmus.

they go
I go
we go
he goes

Answers

Answer:

hmmm I'm up on the answer please and I'll definitely give you the right transition for the verb vocamos

Explanation:

and I will choose the correct translation I just my phone is glitching right now

Ooh
Balloons are deflatin'
Guess they look lifeless like me
We miss you on your side of the bed, mmm
Still got your things here
And they stare at me like souvenirs
Don't wanna let you out my head
Just like the day that I met you
The day I thought forever
Said that you love me
But that'll last for never
It's cold outside
Like when you walked out my life
Why you walked out my life?
I get like this every time
On these days that feel like you and me
Heartbreak anniversary
'Cause I remember every time
On these days that feel like you and me
Heartbreak anniversary
Do you ever think of me?
No
(Ooh) No-no, no
(Ooh, ooh, ooh) Ooh, nah
I'm buildin' my hopes up
Like presents unopened 'til this day
I still see the messages you read, mmm
I'm foolishly patient
(Foolishly patient)
Can't get past the taste of your lips
(Taste of your lips)
Don't wanna let you out my head
Just like the day that I met you
The day I thought forever
Said that you love me
But that'll last for never
It's cold outside
Like when you walked out my life
Why you walked out my life?
I get like this every time
On these days that feel like you and me
Heartbreak anniversary
'Cause I remember every time
On these days that feel like you and me
Heartbreak anniversary
Do you ever think of me?
Of me
'Cause I think of you, think of you

Guess the song ;))

Answers

Okay bestie get ig lm ao ummm
YESSS OKAYYY i love giveon

Which of the following does not describe an effective lead?
has impact
O usually has one sentence
O comes to the point slowly
O grabs the reader

Answers

The 2nd one










Bc they are Usually short and to the point




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