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A 5% increase in GDP which is currently $6,000,000,000 would be $300,000,000. A 5% increase in GDP would require less than a 5% increase in spending due to the multiplier effect. Every dollar of government spending will be spent and re-spent in the circular flow of economic activity. For example, if road construction is authorized, government spending for materials and workers will be spent again by the materials suppliers and the hired workers. Thus, the boost to the economy will be more than 5%. If the MPC (Marginal Propensity to Consume) is .8, then the MPS (Marginal Propensity to Save) must be .2, because together the percentages must add up to 1. Thus, the spending multiplier is 1 / (1 - MPC). In this example, it would be 1 / .2 or 5. That means that each dollar of government spending will generate 5 times that much GDP. To increase GDP by $300,000,000, therefore would take an increase of $300,000,000/5 or $60 million.
The Global Multidimensional Poverty Index developed by the United Nations Development Programme is a measurement of:
1. Nutrition
2. ...
The state's definition is given in which article of Indian Constitution?
An incandescent bulb rated as 100 W at 110 V is connected to a 220 V power supply. The power that dissipates in the bulb would be:
What is an example of the following?
The style of temple architecture that became popular in _________ is known as Nagara.
Man Booker International Prize 2019: Jokha Alharthi wins for Celestial Bodies is related to which of the followingcountry ?
Which of the following dance forms is NOT a classical dance form?
Which ecologist is famous for studying plant life in the Indiana Dunes in 1896?
Which of the following statements is NOT correct about fundamental duties in the Indian Constitution?
According to the Cultural Ministry of India, currently India have how many Classical dances?