ECON150 Week 4 - Explain the difference between

LSU Answer Planned investment Questions

Week 4 ECON150 summer on-line course:

1) Explain the difference between Planned and Actual Investment.

2) How are marginal propensity to Consume and marginal Propensity to Save calculated?

3) What is the relationship between Planned and Actual Investment when the maintainable level of GDP is realized?

4) What is the Spending Multiplier and how is it calculated?

5) What is the Tax Multiplier and how is it calculated?

6) What is included in calculating Investment spending?

7) Why is GDP not maintainable if actual investment is greater than planned investment?

 8) What is the effect on national output in future quarters if planned investment is greater than actual Investment?

9) What are the Fiscal Policy tools that can be used by the Fiscal Policy makers to impact the state of the economy?

10) What is expansionary Fiscal policy and what changes in tax and spending decisions will take place in exercising an expansionary fiscal policy? What conditions exist in the economy (relative to GDP and Unemployment) that could cause an expansionary fiscal policy to be initiated?