wk 6 homework solutions Essay - 820 Words

Week 6 Homework Solutions Question 3 Explain how built-in (or automatic) stabilizers work. What are the differences between proportional, progressive, and regressive tax systems as they relate to an economy’s built-in stability? Answer In a phrase, â€Å"net tax revenues vary directly with GDP.† When GDP is rising, so are tax collections, both income taxes and sales taxes. At the same time, government payouts—transfer payments such as unemployment compensation and welfare—are decreasing. Since net taxes are taxes less transfer payments, net taxes definitely rise with GDP, which dampens the rise in GDP. On the other hand, when GDP drops in a recession, tax collections slow down or actually diminish while transfer payments rise quickly.†¦show more content†¦Meanwhile, other factors may change, rendering inappropriate a particular fiscal policy. Nevertheless, discretionary fiscal policy is a valuable tool in preventing severe recession or severe demand-pull inflation. A political business cycle is the concept that politicians are more interested in reelection than in stabilizing the economy. Before the election, they enact tax cuts and spending increases to please voters even though this may fuel inflation. After the election, they apply the brakes to restrain inflation; the economy will slow and unemployment will rise. In this view the political process creates economic instability. A decrease in tax rates might be enacted to stimulate consumer spending. If households receive the tax cut but expect it to be reversed in the near future, they may hesitate to increase their spending. Believing that tax rates will rise again (and possibly concerned that they will rise to rates higher than before the tax cut), households may instead save their additional after-tax income in anticipation of needing to pay taxes in the future. The crowding-out effect is the reduction in investment spending caused by the increase in interest rates arising from an increase in government spending, financed by borrowing. The increase in G was designed to increase AD,Show MoreRelatedQmb 360013075 Words   |  53 Pagesoptions to reduce time at the window. 2. The primary economies of scale concern spreading the instructor’s salary over a larger class and filling classrooms to capacity (and then some). Diseconomies occur when additional help is required to review homework, administer tests, and coordinate schedules of students and assistants. Growth eventually requires larger classrooms or lecture halls. If we view the product as learning, there is a possibility that diminishing returns on the amount of learning occurRead MoreInternal Logistics as Part of Supply Chain13971 Words   |  56 Pagesemployees. Key words: Logistics, internal logistics, supply chain, logistics process, performance measurement, Nokia-China, Dongguan Branch ABBREVIATIONS CIP Carriage Paid To CIQ Custom Immigration Quarantine COO Country of Origin C wk Current Week DDU Delivered Duty Unpaid DN Deliver Note EDI Electronic Data Interchange E2E End to End FCA Free Carrier IE Import Export L P Logistics Planning LSP Logistics Service Provider MM Material Management Read MoreFinal Project Essay7836 Words   |  32 PagesSOLUTION-BLESSED BRIEF PASTORAL COUNSELING PROJECT by Amy Tahran L22263350 Presented to John Hobbs, In partial fulfillment of the requirements for PACO 500 Introduction to Pastoral Counseling Liberty Theological Seminary Lynchburg, VA 12 August 2011 ABSTRACT For this project, I am placing myself in a hypothetical context as a staff pastoral counselor at my home church in Valley City, ND, serving a congregation of approximately 200. I have chosen as my overarching goal forRead MoreEssay on Short Term Pastoral Counseling Final15227 Words   |  61 PagesSolution-Based, Short-Term Pastoral Counsleing Final Project By Mike Garner Presented to Dr. Robyn Simmons In partial fulfillment of the requirements of Introduction to Pastoral Counseling PACO 500 Liberty Baptist Theological Seminary Lynchburg, VA March 3, 2013 Abstract My future ministry will be as Co-Pastor of a medium sized Community Church in Lewisville, Texas. Each Sunday the church will have approximately 240 in attendance of Sunday morning worship service. My overarchingRead MoreEvaluation Research Design Literature19283 Words   |  78 Pages253 Chapter 6 Evaluation Research Design: Literature Reviews Synthesis Frequently a research question or hypothesis can be answered through secondary research, i.e., a literature review or synthesis. Both strategies requires the researcher to mine existing data sources; ―pull outâ€â€" relevant data or information; summarize it; logically analyze and/or statistically treat it; and report results. In many instances, the issue, problem, question, etc. which prompted the idea for an evaluation study isRead More_x000C_Introduction to Statistics and Data Analysis355457 Words   |  1422 Pagesuse material from this text or product, submit a request online at http://www.thomsonrights.com. Any addit ional questions about permissions can be submitted by e-mail to thomsonrights@thomson.com. Printed in the United States of America 1 2 3 4 5 6 7 11 10 09 08 07 ExamView  ® and ExamView Pro  ® are registered trademarks of FSCreations, Inc. Windows is a registered trademark of the Microsoft Corporation used herein under license. Macintosh and Power Macintosh are registered trademarks of Apple ComputerRead MoreVarian Solution153645 Words   |  615 Pagesreservation price, there will be two diï ¬â‚¬erent quantities of apartments demanded, since consumer i will be indiï ¬â‚¬erent between having or not having an apartment.) 2 THE MARKET (Ch. 1) Price 60 50 40 30 20 10 0 1 2 3 4 5 6 7 8 Apartments (b) Suppose the supply of apartments is ï ¬ xed at 5 units. In this case there is a whole range of prices that will be equilibrium prices. What is the highest price that would make the demand for apartments equal to 5 units? $18. $15