Suppose, the negative shock of the pandemic has pushed the economy far below its productive capacity (or potential GDP). To boost the economy, the government has decided to expand government spending (G). Government should exercise caution in implementing this policy as increase in government spending may ‘crowd out’ private spending. Is this True, False or Uncertain? Please provide your explaination.

Which perspective is better suited to handling the recession that was caused by the pandemic? Keynesian or Neoclassical? Explain why.

Look at the photo for prompt. In order of effectiveness (net effect change in rGDP)), order these actions; base your reasoning on actual numbers.  Show your calculations.

Assume that the Marginal Propensity to Consume (MPC) is 0.8. If the multiplier effect is taken into account, the reduction in government expenditure by $ 200 million will shift the overall demand process to the correct order below. A) right, $1,000 million B) left, $ 200 million C) left, $160 million D) left, $1,000 million E) right, $ 160 million

The reallocation of goods from low to high valued use can take the form of a change in legal ownership or a physical reallocation of the good from an area where it has low value to an area where it has a higher value. In this case, used cars are worth                           [more, less]            in Mexico than they are in the United States. We know this because the price of used cars is                           [higher,lower ]            in Mexico compared to the US. If people are left alone to pursue their self-interest as they define it, owners of used cars will enrich themselves if they physically relocate there cars to Mexico and sell them. They might do this directly or middlemen may do it for them. In either case, used cars                           ["will be sent from u.s to Mexico", "will be sent from Mexico to U.S"]            . The graph shows the used car markets in the US and Mexico when the government interferes in the free market and prevents/regulates the sale of…

On average, the per-capita grocery spending in Maine takes up 9.08% of all personal consumption spending compared with 7.49% nationwide. Could either or both of these consumption figures be considered a point estimate? Explain your reasoning.

As part of the response to the Covid-19 virus, the Federal government passed a 2 Trillion-dollar bill. This increase in spending must result in which of the following?       lower future taxes       higher government spending       some combination of lower future government spending and higher future taxes     all available are true     two of the available are true

Answer the given question with a proper explanation and step-by-step solution.  the value of a is 1334