Assume the government wants to increase GDP and income Y. It has $100 million to use.

Assume the government wants to increase GDP and income Y. It has $100 million to use. Explain why spending it on roads and bridges (government spending G) will increase Y more or less than if it used the money on transfer payments (R) such as welfare payments. You must refer to the multiplier and mathematically why one policy would be different from the other. Explain why one policy would work better than the other.

The post Assume the government wants to increase GDP and income Y. It has 0 million to use. first appeared on economicswriters.com .


Assume the government wants to increase GDP and income Y. It has $100 million to use. was first posted on November 19, 2020 at 5:21 am.
©2019 "economicswriters.com ". Use of this feed is for personal non-commercial use only. If you are not reading this article in your feed reader, then the site is guilty of copyright infringement. Please contact me at [email protected]

 

"Are you looking for this answer? We can Help click Order Now"