--%>
Assignment Help - homework help

Circular flow model to confirm this assertion

Use the circular flow model to confirm this assertion for the construction of a new high school in Blackhawk county?

E

Expert

Verified

In building the school, the effect would be an increase in government expenditures to the product market and an increase in business revenues.  The owners of the resources used to building the school will have an increase income.  Resources will be diverted away from the private sector. To pay for the high school, taxes may have to be increased. If the economy is experiencing unemployment, the increase in government spending may increase total output and employment.

   Related Questions in Business Economics

  • Q : Regulate prices to ensure against

    Not between exact activities for government to undertake, according to Adam Smith, would be for the government to: (1) maintain public institutions and public works. (2) protect society by invasion. (3) serves as a medium for law and justice. (4) regu

    		•
  • Q : Real rate of interest Question: Hubbard

    Question: Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  • Q : What do you mean by Linkages What do

    What do you mean by Linkages?

    		•
  • Q : Market system & a command economy try

    Contrast how a market system and a command economy try to cope with economic scarcity?

    		•
  • Q : Entrepreneurs and business are at the

    Explain the statements: Entrepreneurs and business are at the helm of the economy.

    		•
  • Q : Describe World Trade Organization

    Describe World Trade Organization (WTO)?

    		•
  • Q : Illustrate and clarify the economizing

    Illustrate and clarify the economizing problem?

    		•
  • Q : Problem on Legislature budget XY School

    XY School District has a large number of students in need of remedial instruction. The superintendent of XY School System can allocated her budget between purchasing X units of remedial instruction at a price of $2,000/unit and spending an amount ($Y) on all other sch

    		•
  • Q : Costs for a firm Question:  (a)      

    Question:  (a)       Complete the following table of costs for a firm.  (Note: enter the figures in the MC  column between outputs of  0 and 1, 1 and 2, 2 and 3, etc.) 

    		•
  • Q : Technological advances in producing

    When given resources can now produce additional goods than was previously probable, then there have been a: (1) Stock market boom. (2) Competitive spurt which shrinks entrepreneurial gain. (3) Concavity reversal in the production possibilities frontier. (4) Bigger rel

    		•