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When would the government step in and spend more revenue and lower taxes to stimulate demand?
They would do this when the economy is weak.
What else can I help you with?
When would the government step in and spend more Revenue and or lower taxes to stimulate demand?
They would do this when the economy is weak.
Which of these is not one of the ways in which the Federal Reserve can affect the country's monetary policy?
It can spend more revenue and/or lower taxes to stimulate demand.
If the country is in a recession what will the government do to the interest rates to stimulate the economy?
lower
What is the term used to define when government revenue is lower than government expenses?
Budget surplus.
If there are a lot of people without jobs how do you think this will affect the amount of money that the government earns through taxes?
When there are a lot of people without jobs, the government's tax revenue will likely decrease. This is because unemployed individuals are not earning taxable income, leading to lower income tax revenue for the government. Additionally, decreased consumer spending by those without jobs can also impact sales tax revenue. Overall, high unemployment rates can significantly impact the government's ability to generate revenue through taxes.
Why is demand greater than marginal revenue for all imperfectly competitive firms?
In imperfectly competitive markets, firms have some control over the prices they charge. Demand is greater than marginal revenue for these firms because they must lower prices to sell more products, which reduces the revenue they earn on each additional unit sold. This is because they face downward-sloping demand curves, meaning they have to lower prices to attract more customers.
What are the ideas of john maynard keynes?
he believed that deficit spending in recessions or depressions would stimulate the nation's economy.. in other words, he realized that the government has to spend money to help save the economy
How does a decrease in government spending impact aggregate demand?
A decrease in government spending reduces the overall demand for goods and services in the economy, leading to a decrease in aggregate demand. This can result in lower economic growth and potentially lead to a recession.
In an aggregate demand-aggregate supply diagram what will equal decreases in government spending and taxes do?
No effect. Spending will decrease Aggregate Demand, lower taxes will raise Aggregate Demand
What is a fiscal policy tool used to stimulate the economy Reducing inefficient employment of resources Lower interest rates Increased imports Increased government purchases?
increased government purchases.
How did Reagan suggest keeping the deficit down if taxes were cut?
The hope was that lower taxes would stimulate business expansion, resulting in more jobs and more income, thus increasing revenue even at the lower rate. He also hoped to cut expenditures .
What are the Advantages and disadvantages of rising prices?
Pros: Higher profit margin - Higher contribution - More revenue per unit sold Cons: Lower demand for price elastic products - Fewer sold - Less total revenue
