Economic Help Asap Please!! Suppose That Two Economies Initially Have?

i’m new to economic and i need help on this question in order to submit my homework///
1) Suppose that two economies initially have the same level of real income and both suffer unanticipated declines in their sales of exports of $50 billion. Country “A” has higher tax rates and a higher level of government spending than economy “B”. Otherwise, the two economies are similar in every respect. Which country will suffer the greatest decline in employment as a result of the decline in exports? (Hint: think about multiplier effects and which country will have the higher multiplier!)

Both comments and pings are currently closed.

One Response to “Economic Help Asap Please!! Suppose That Two Economies Initially Have?”

  1. Oblivion Approaches says:

    Depens on how the other one is spending taxes? The one who supports infrastructure that benefits business will have a better chance of reviving the economy and it will also provides jobs to people who are building airports, bridges, and roads.

Powered by WordPress | Designed by: free css template | Thanks to hostgator coupon and web hosting reviews