![IkarosSakurai](/avatars/40583.jpg)
IkarosSakurai
25.03.2020 •
Business
Assume the tax multiplier is estimated to be 1.3 and the aggregate supply curve has its usual upward slope. Suppose the government lowers taxes by $135 million. Aggregate demand will increase by $ nothing million. (Enter your response rounded to one decimal place.)
Solved
Show answers
More tips
- H Health and Medicine 10 Simple and Effective Tips on How to Lose Weight in a Week...
- C Computers and Internet Where did torrents.ru move to?...
- B Business and Finance Understanding Cash Flow: What It Is and How It Works...
- C Computers and Internet What Are Peers and Seeds in Torrenting?...
- H Health and Medicine 10 Simple Techniques on How to Boost Your Mood...
- G Goods and services How to Choose the Right High Chair for Your Baby?...
- S Style and Beauty Learn how to tie a keffiyeh on your head like a pro...
- S Style and Beauty How to braid friendship bracelets?...
Answers on questions: Business
- B Business Match each endocrine gland with its function : 25 pts...
- B Business Future value of a portfolio. Rachel and Richard want to know when their current portfolio will be sufficient for them to retire. They have the following balances in their...
- B Business Ceracy L 1.2.2 Quiz: Identifying Goals Question 1 of 10 Buying a house is most likely a long term goal for a person of which of these ages? A. 15 years old B. 75 years...
- B Business On June 30, 2021, L. N. Bean issued $15 million of its 8% bonds for $14 million. The bonds were priced to yield 10%. Interest is payable semiannually on December 31 and...
- B Business You’ve decided to buy a house that is valued at $1 million. You have $300,000 to use as a down payment on the house, and want to take out a mortgage for the remainder...
- B Business Jetson Spacecraft Corp. shows the following information on its 2019 income statement: sales = $214,000; costs = $91,000; other expenses = $6,100; depreciation expense...
- M Mathematics Three points on the graph of the function f(x)f(x) are \{(0, 6), (1, 8), (2, 10)\}{(0,6),(1,8),(2,10)}. Which equation represents f(x)f(x)? f(x) = 2x+6f(x)=2x+6 f(x)=6\cdot\left(\frac{4}{3}\right)^xf(x)=6⋅(...
- M Mathematics Priya’s family exchanged 250 dollars for 4,250 pesos. Priya bought a sweater for 510 pesos. How many dollars did the sweater cost? need it by 11:59 pm tonight...
- E English Along with alliteration, the use of what sound device enhances the excitement of Beowulf s combat with Grendel? (A) assonance (B) consonance (C) onomatopoeia (D) rhyme...
- P Physics WILL GIVE BRAINLIEST + 10 pts Based on this image, what is responsible for the pattern of ocean currents? differences in water temperature differences in water salinity...
Ответ:
Increase in aggregate demand : $175.5 million
Explanation:
Taxation is a factor that affects the demand curve. When taxes rise, it means that a higher proportion of income would be used to pay taxes, leading to a lower disposable income. On the other hand, when taxes fall, there would be an increase in disposable incomes. Hence, consumers will have more to spend on their needs and wants, increasing their consumption.
Aggregate demand consists of Consumption (C), Investment (I), Government spending (G) and Net exports (X - M).
As is shown, consumption is one of the components of aggregate demand, thus when consumption increases, aggregate demand increases.
In order to calculate by how much this increase is, we need to understand the tax multiplier. This is measure of the change in GDP in response to a change in government taxes. In this case, the tax multiplier is 1.3 whilst decrease in government tax is $135 million. This means that for every $1 fall in taxes, aggregate demand rises by $1.3
Hence, increase in aggregate demand = 1.3 x $135 million
$175.5 million
Ответ:
idk
Step-by-step explanation: