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An increase in government expenditure would shift the aggregate demand curve to the right. This is because higher government spending injects more money into the economy, leading to increased consumption and investment. As a result, this can stimulate economic growth and potentially lead to higher inflation if the economy is near full capacity.
What else can I help you with?
How can the federal government use fiscal policy to combat unemployment?
The government can cut taxes. This would put more money into the hands of theAmerican citizens, which would get the economy moving a little more and allow business owners to hire on more employees.
Name and describe 5 reasons why there would be a change or shift in supply?
There would be a shift in supply if:1. The price of the inputs were to increase/decrease.2. A new technology was invented that made the production process fast - would shift supply up.3. If new capital was gained, like forests being cleared to make was for farming - would shift supply up.4. A change in the expected prices would increase/decrease supply.5. An improvement in weather will increase the productivity of the same amount of farmland - making an increase in demand.
How would the security market line shift if inflation decreased and investors became more risk adverse?
it will shift up, the slope will remain the same
When would an increase in government purchases be an appropriate countercyclical fiscal policy?
A decrease in government spending and increase in taxes.
Which of these would most likeley to occur if the governments priority was to increase government expenditures?
increase taxes
What is the effect on wrong treated revenue expenditure as capital expenditure?
The effects it would has on net profit and net asset is that there would be an increase in net profit and an increase in net asset as well
What is the effect on wrong treated capital expenditure as revenue expenditure?
The effects it would has on net profit and net asset is that there would be an increase in net profit and an increase in net asset as well
Why a sudden decrease in desired consumption expenditure would lead to an sudden increase in actual investment?
It is as you are Gida.
How can the federal government use fiscal policy to combat unemployment?
The government can cut taxes. This would put more money into the hands of theAmerican citizens, which would get the economy moving a little more and allow business owners to hire on more employees.
How would you adjust the temperature to increase the amount of production?
Increasing the temperature would shift the equilibrium to the right and increase the amount of product.
If a capital expenditure is treated as a revenue expenditure then?
Now, if a capital expenditure is treated as a revenue expenditure, then the expenses would be overstated and also the Fixed assets would be overstated
What would most likely occur if the government's priority was to increase government expenditures?
increase taxesincrease taxesincrease taxes.
Name and describe 5 reasons why there would be a change or shift in supply?
There would be a shift in supply if:1. The price of the inputs were to increase/decrease.2. A new technology was invented that made the production process fast - would shift supply up.3. If new capital was gained, like forests being cleared to make was for farming - would shift supply up.4. A change in the expected prices would increase/decrease supply.5. An improvement in weather will increase the productivity of the same amount of farmland - making an increase in demand.
How would the security market line shift if inflation decreased and investors became more risk adverse?
it will shift up, the slope will remain the same
When would an increase in government purchases be an appropriate countercyclical fiscal policy?
A decrease in government spending and increase in taxes.
What is included in household consumption expenditure?
Any spending that will not fall into any of the other categories (investment, Government, and Net Exports) -So taxes would go to government spending, etc.
What happens if revenue expenditure is recorded as a capital expenditure?
If that happens, there will be overstatment of the period's profit as well as overstatement of assets. This will reduce the future profit of business because the original costs of assets will be charged more to the Profit and Loss account in process of depreciation of assets.
