For both political and macroeconomic reasons, governments are often reluctant to run budget deficits. Here, we examine whether we examine whether it is possible to affect output through changes in government spending and taxes while the bu1dget remains balanced. Output is given by:
??=1???1 (??0+??+1??)
1. By how much does Y increase when G increases by one unit?
2. By how much does Y decrease when T increases by one unit?
3. Why are your answers to (1) and (2) different?
Suppose that the economy starts with a balanced budget G=T.
4. Suppose that G and T increase by one unit each. Using your answers to 2 and 3 what is the
change in equilibrium GDP? Are balanced budget changes in G and T macroeconomically
neutral?
5. How does the specific value of the propensity to consume affect your answer? Explain.

2standard deviation a particular telephone number is used to receive both voice calls and fax messages. suppose that 25% of the incoming calls involve fax messages, and consider a sample of 25 incoming calls. (a) what is the expected number of calls among the 25 that involve a fax message?

12. nelson corporation, which has only one product, has provided the following data concerning its most recent month of operations: selling price $ 115 units in beginning inventory 380 units produced 5,900 units sold 6,070 units in ending inventory 210 variable costs per unit: direct materials $ 46 direct labor $ 27 variable manufacturing overhead $ 3 variable selling and administrative $ 12 fixed costs: fixed manufacturing overhead $ 112,100 fixed selling and administrative $ 36,420 the company produces the same number of units every month, although the sales in units vary from month to month. the company's variable costs per unit and total fixed costs have been constant from month to month. a. prepare a contribution format income statement for the month using variable costing. unit product cost under variable costing direct materials direct labor variable manufacturing overhead variable costing unit product cost (formula)

Martha is the head of the accounts department in a small manufacturing company. the company follows the accrual-basis method of accounting. it recently purchased raw materials worth $5,000 from its vendors. however, the company paid only $3,000 to its vendors. it plans to pay the remaining amount after three months. considering this information, which entry should martha record in the company’s accounts? a. $5,000 as accounts receivable b. $3,000 as accounts payable c. $2,000 as accounts payable d. $2,000 as accounts receivable