--%>

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 : Laissez-faire philosophy of government

    As per to the laissez-faire philosophy of government,: (1) economy works best while all investment decisions are centralized. (2) market system works best along with only minimal government intervention. (3) government must be restricted to stabilizin

  • Q : The market system not only accepts

    Explain the statements: The market system not only accepts self-interest as a fact of human existence.

  • Q : Economic Why are democratic regimes

    Why are democratic regimes more conducive to economic growth than dictatorship

  • Q : Economic sense production methods

    Evaluate and explain the statements: “In the economic sense production methods are the most efficient methods, once resource prices are considered and are lesser in sense of engineering”.

  • Q : Regression Your firm is worried about

    Your firm is worried about being sued for gender discrimination. There is a growing perception that males are being paid more than females in your department. Using the data in the SALARY tab in the Excel file provided, please complete the following using a = .05 a). Do the men appear to earn mo

  • Q : Reciprocal Trade Agreements Act had

    How Reciprocal Trade Agreements Act had goal of reducing tariffs?

  • Q : Productive capacity After the Spanish

    After the Spanish found the new world, they promptly began to plunder this. They imported huge amount of gold and silver to Spain. It inflow of bullion caused a rapid increase in inflation, that would have grave consequences for Spain. It is quick inflation made this

  • Q : Describe Financial Leverage Briefly

    Briefly describe Financial Leverage? In what manner it is calculated? What does low or high financial leverage signify?

  • Q : Historical process by Adam Smith of

    Writings on the historical process by Adam Smith of economic development do not comprise heavy reliance upon: (1) the development of property rights. (2) self interest. (3) divisions of labor in production processes. (4) innovations d

  • Q : Problem related to market circular flows

    In output markets, the simple circular flow model, households replace their _________ for _________. Can someone help me in determining the right answer from the given options. (1) Resources | income. (2) Labor | g