Ask Question, Ask an Expert


Ask Business Economics Expert

Discussing automatic expenditure, difference between discretionary fiscal policy and automatic stabilizer, effects of expansionary and contractionary monetary policy.

(a) Let's say that the US's GDP was $260 billion in 1980 and $325 billion in 1990. Both figures were find outd as usual in term of market prices for the year involved. The price index rose from 100 in 1980 to 130 in 1990. What happened to real output from 1980 through 1990? In terms of 1980 prices, the 1990 GDP would be? The overall rate of inflation during the ten years is approximately? Show all work

(b) Now suppose that nominal GDP in 1998 totals $8475 billion and rises to $12.5 trillion ten years later for the United States. The GDP deflator for 1998 is 1.85 and for 2008 is 2.75, in what year is real GDP greater? By how much? How did you arrive at this conclusion? Show all work and fully describe your reasoning. describe why measuring GDP in real terms is important. Now consider the following information for the U.S.: During 2004, consumption expenditures increased by $13.5 billion, gross private domestic investment increased by $5.8 billion, and government expenditures declined by $10.4 billion. In addition, the country experienced a trade deficit of $2.9 billion. Did the U.S.'s GDP increase or decrease during this year? By how much? Show all work and fully describe your reasoning.

(c) Describe three automatic expenditures in the federal budget. What is the difference between discretionary fiscal policy and automatic stabilizers? Discuss the effects of both expansionary and contractionary fiscal policies on the federal budget position? How would a budget deficit impact aggregate demand and crowd out private sector spending? How would this effect change the impact of expansionary fiscal policy on the economy and what are the overall effects in terms of the demand side transmission mechanism? Fully describe your analysis.

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M921479

Have any Question? 

Related Questions in Business Economics

Assignmentarticle reportplease select a marketing topic you

Assignment Article Report Please select a marketing topic you learned and then search in the Wall Street Journal (either online or hardcopy *) and select an article about that topic within the last 12 months. To do this, ...

Assignment -consider the following cobb douglas production

Assignment - Consider the following Cobb Douglas production function where Y is maize output, X 1 is labour input, and X 2 is the capital. Data for estimating this equation is given in the Table below. Y = β 0 X 1i β_1 X ...

Free trade and restricted trade - benefits and cost1-2

Free Trade and Restricted Trade - Benefits and Cost 1-2 paragraphs APA format/ no plagarism Using your own words, define both free and restricted trade. What do you feel are the benefits and the cost to having free trade ...

Allocation and allotments please respond to the following1

"Allocation and Allotments" Please respond to the following: 1. From the first e-Activity, examine and evaluate the disparity of Georgia budget allocation for education and property tax to the various localities. Based o ...

Assignmentpart idirections please write a paper that is at

Assignment PART I Directions: Please write a paper that is at least two to three pages in length in which you address the questions below. Write your paper in APA format with at least one cited scholarly reference. Revie ...

Assessment task in this assessment students are required to

ASSESSMENT TASK: In this assessment, students are required to demonstrate their ability to apply economic principles learnt in this subject to analysing real-world business operations and evaluate how their long-run busi ...

Assignmentinstructions1 select an illegal activity and

Assignment Instructions 1. Select an illegal activity and transform/mask its' true purpose with the disguise of a legitimate business operation. In other words, create a start-up business that would be viewed as a legal ...

Question 1 for the following situations calculate

Question 1 . For the following situations, calculate elasticity of demand and comment on the answer.                             When the price of commodity X was Rs. 12/-, 40 units it were demanded. When the price decre ...

In the united states as in most countries we value the

In the United States, as in most countries, we value the benefits of a free and competitive market. This suggests an interesting question: what if there were to be no Antitrust laws or other regulations on business activ ...

Assignmentyou must submit 2 files to this link once done as

Assignment You must submit 2 files to this link once done as follows: Part 1) An MS Excel spreadsheet (.xls or .xlsx no other file formats will be accepted) use the dataset spreadsheet provided for the assignment and inc ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro