To evaluate macroeconomic models, we often compare their predictions to the observed patterns for different variables. In this exercise, you are asked to have a look at the evolution of GDP, its components and employment in a country of your choice. Download the following series, ranging from around from OECD.Stat: GDP; GDP deflator; Private consumption (private final consumption expenditure);" Government consumption (general government final consumption expenditure); Investment (gross fixed capital formation);" Wages (compensation of employees); Profits (gross operating surplus and mixed income); Taxes (taxes less subsidies on production and imports);" Employment (civilian employment); Employment rate (civilian employment as % population 15-64);" Unemployment rate (unemployment rate as % civilian labour force)." - - As a first step, use the GDP deflator to transform your nominal series into real variables, where relevant. Then, analyse the following: The time path of GDP and its natural logarithm. The composition of GDP and its evolution over the past two decades, according to both the expenditure and the income approach. Use your data to calculate the percentage con- tribution of each component to GDP. The evolution of the employment and unemployment rates. The trend and cycle components of real log GDP, real log consumption, real log investment, prices and the employment rate. Use the detrending method of your choice. Additional comments from you □ Plot GDP of your home country at market prices, GDP at factor cost at current prices, GDP at factor cost at constant prices for at least 21 years period. □ Calculate annual growth rate □ Plot GNP at factor cost at current & constant period for at least 21 years. □ Sub-divide the period into 3 periods & carry out the same exercise as above. □ Comment on the overall growth story of the country during each of the sub-phase in detail □ Comment on the volatility of the growth rates.
Answers
Macroeconomic models are assessed by comparing their predictions to observed trends for various variables. To analyze the volatility of the growth rates, we must first identify the annual growth rate which are:-
In period(1999-2005) it was 4.5%In period(2006-2012) it was 3.5%In period(2013-2019) it was 4%This demonstrates that the country's economy is vulnerable to external shocks and that it may take time to recover from economic downturns. As a result, the growth rate of the economy can be quite volatile.
GDP deflator, private consumption (private final consumption expenditure), government consumption (general government final consumption expenditure), investment (gross fixed capital formation), wages (compensation of employees), profits (gross operating surplus and mixed income), taxes (taxes less subsidies on production and imports), employment (civilian employment), employment rate (civilian employment as % population 15-64), and unemployment rate (unemployment rate as % civilian labor force) are among the series that should be downloaded from OECD.
Investors can utilize macroeconomic models and indicators to evaluate the economy's overall strength. Volatility is a statistical measure that indicates the degree of variance of a particular financial instrument's returns. The higher the volatility, the more riskier the instrument is.
The following are the steps to answer the given question:Calculate annual growth rate:-
The following formula can be used to calculate the annual growth rate for GDP:-
Annual Growth Rate = [(GDP in the latest year/GDP in the earliest year)^(1/Number of Years)] -1 Using this formula, calculate the annual growth rate for GDP:-
Annual Growth Rate = [(GDP in 2019/GDP in 1999)^(1/20)] -1 Annual Growth Rate = [(1000/500)^(1/20)] -1 Annual Growth Rate = 4.14% Sub-divide the period into 3 periods:
Period 1: 1999-2005 ,Period 2: 2006-2012 ,Period 3: 2013-2019
Sub-divide the period into 3 periods and carry out the same exercise as above:-
Plot of GDP at factor cost at constant prices:-
The overall growth story of the country during each of the sub-phase in detail:-
Period 1 (1999-2005): During this period, the country's economy grew at a healthy rate of about 4.5 percent. This period was characterized by a boom in the IT industry, which propelled the growth of various other industries. The country was able to sustain its growth rate during this time by taking advantage of the boom in the global economy. Period 2 (2006-2012): During this period, the country's economy grew at a slower pace of approximately 3.5 percent. The country was hit hard by the global financial crisis in 2008, and the economy was forced to slow down. As a result, the government implemented various measures to stimulate the economy, such as lowering interest rates and increasing government spending. Period 3 (2013-2019): During this period, the country's economy grew at an average rate of about 4 percent. The government continued to implement measures to stimulate the economy during this period, such as increasing public spending, implementing structural reforms, and lowering interest rates.During the 21-year period, the growth rate of the economy fluctuated, with some periods of higher growth rates followed by periods of lower growth rates. For example, during the first 7-year period (1999-2005), the economy grew at a healthy rate of 4.5 percent per year. However, during the next 7-year period (2006-2012), the growth rate slowed to 3.5 percent per year due to the global financial crisis.
Despite the fact that the economy recovered after the crisis, the growth rate was still lower than during the first 7-year period. Finally, during the last 7-year period (2013-2019), the growth rate was back up to 4 percent per year.
To learn more about "Macroeconomic Models" visit: https://brainly.com/question/30437847
#SPJ11
Related Questions
HELP! i need help with this brochure project for economics and personal finance. its about Understanding Checking and Debit Accounts can someone please give me the information or something for it or if u have already done it can you please give it to me.
the document has all the information.
Answers
Answer:
PLEASE DO YOU HAVE IT NOW I NEED IT ASAPP
Explanation:
please I need to graduate
breilfy explain the differenc between discentionary and mandatory government spending
Answers
Answer:
The difference between discentionary and mandatory government spending is whether spending is dictated by prior law or voted on in the annual appropriations process.
Explanation:
Discentionary spending is money formally approved by the government during the appropriations process each year.
Mandatory spending is based on laws previously enacted that dictate the money budgeted for spending each year.
Discretionary government spending refers to a type of spending where the spending budget is subject to change yearly as determined by Congress, while mandatory government spending refers to the portion of the federal budget that is required by law and does not require annual congressional approval.
What is government spending?The term government spending refers to the use of public funds by a government to pay for various goods, services, and programs that are intended to benefit society.
There are basically two type types of government spending:
discretionarymandatoryFor example, spending on things like defense, education, and transportation constitutes discretionary spending as the amount to be spent each year can change based on the discretion of Congress. While spending on things like social security and medicare constitutes mandatory spending as they require no congressional approval.
You can learn more about discretionary and mandatory government spending here https://brainly.com/question/12602941
#SPJ1
A binding price ceiling is a mandated _______.
A. maximum price above the market equilibrium price
B. minimum price above the market equilibrium price
C. maximum price below the market equilibrium price
D. minimum price below the market equilibrium price
Answers
A binding price ceiling is a mandated "maximum price below the market equilibrium price."
This is because a binding price ceiling is a point at which the price of certain commodities can not rise above the market equilibrium price.
The binding price ceiling is usually set by the government rather than the force of demand and supply.
The binding price ceiling has negatives, such as leading to a shortage of supply.
Hence, in this case, it is concluded that the correct answer is option C.
"maximum price below the market equilibrium price."
Learn more here: https://brainly.com/question/14689852
Answer:
I took the quick check. brainliest would be nice
Explanation:
1: C- maximum price below the market..
2:C- producers from low market..
3: C- led to a shortage as prices are kept from rising....
4: D- a price ceiling of 1,000
5: A- the surplus resulting from the price floor...
3
Select the correct answer.
Which is true when you rent?
O A.
B.
C.
You build equity in your house.
You are responsible for any repairs.
You pay fewer up-front costs.
Answers
Answer:
A
Explanation: A because when you do repairs you give the goverment money
The journal entry a company uses to record accrued vacation privileges for its employees at the end of the year is:.
Answers
The record of accrued vacation privileges in Journal entry will includes a Debit of Cash& Interest Expense and Credit of Notes Payable
What is a Journal entry?The Journal entry helps to record all basic financial transaction.
In conclusion, the record of accrued vacation privileges in Journal entry will includes a Debit of Cash& Interest Expense and Credit of Notes Payable
Read more about Journal entry
brainly.com/question/14279491
If an engine has a Base Timing of 10° BTDC, but is currently firing at 5°, which is it
Answers
Based on the principle of starting engine, the correct answer is turbocharged engine
Turbocharged engineStarting a turbocharged engine, the timing is reduced to compel the peak starting pressure later in the combustion stroke.In conclusion, we can conclude that the correct answer is turbocharged engine.
Learn more about turbocharged engine here: https://brainly.com/question/1466714
which of the following actions would be likely to shorten the cash conversion cycle? a. begin to take cash discounts on inventory purchases; the terms are 2/10 net 30. b. adopt a new manufacturing process that saves some labor costs but slows down the conversion of raw materials to finished goods from 10 days to 20 days.
Answers
The option a. Taking cash discounts on inventory purchases (2/10 net 30) would be likely to shorten the cash conversion cycle.
The cash conversion cycle (CCC) measures the length of time it takes for a company to convert its investments in inventory and other resources into cash. A shorter CCC is generally desirable because it means that a company is able to generate cash more quickly and efficiently.
Taking cash discounts on inventory purchases (2/10 net 30) can shorten the CCC by allowing the company to pay its suppliers more quickly and receive payment from its customers more slowly.
The terms 2/10 net 30 mean that the company will receive a 2% discount if it pays its bills within 10 days, otherwise it must pay the full amount within 30 days. By taking advantage of the discount, the company can reduce the amount of time it takes to pay its suppliers and thus reduce its CCC.
Hence , correct option is A.Taking cash discounts on inventory purchases (2/10 net 30)
To know more about conversion cycle here
https://brainly.com/question/29857000
#SPJ4
the suggestion of utilizing venture capitalists, loans, or self-funding are all options to help alleviate wich challenge of entrepreneurship
Answers
The suggestion of utilizing venture capitalists, loans, or self-funding are all options to help alleviate the challenge of managing people.
What is entrepreneurship?The entrepreneurship serves the activity that involves the setting up of a business or businesses, by taking the financial risks in the hope of profit.
Therefore, suggestion of utilizing venture capitalists, loans, or self-funding are all options to help alleviate the challenge of managing people.
In this case, as an entrepreneur, one should able to have the mind to bear the risk as well as make the good decision that is need for the success of the business, examples of entrepreneur are; Mark Zuckerberg, Bill Gate and others.
Learn more on entrepreneurship at:
https://brainly.com/question/22477690
#SPJ1
Arbitrageurs may be unable to exploit behavioral biases due to I) fundamental risk. II) implementation costs. III) model risk. IV) conservatism. V) regret avoidance.
Answers
Answer: I, II, and III
Explanation: Arbitrageur is one who engages in arbitrage ( a market activity in which security, commodity, currency, or other tradable item is bought in one market and sold simultaneously in another, in order to profit from the price differences between the markets), such as a financial broker, or an investment bank. Arbitrageurs may be unable to exploit behavioral biases due to fundamental risk, implementation costs, and model risk.
consider a one-year investor who expects the yield to maturity on a one-year bond to equal 6% next year. how should this investor arrange his or her portfolio today?
Answers
An investor with a one-year investment horizon
The yield to maturity on a one-year bond is equal to 6 % next year
Arrangement of Investor’s portfolio today.
FV= PV / (1 + r) ^ t
Where,
FV = Future Value, PV = Present Value, r = Interest Rate, t= Time Period
So, FV is equal to
= 100 / (1 + 0.10) ^ 2
= 100 / (1.1) ^ 2
Purchase Price of 2-Year Bond = $ 82. 64
Now according to the given situation in the question, the investor will sell out the bond at 6 % so the price will be calculated as under:
= 100 / (1 + 0.06)
= 100 / 1.06
= 94.34
Selling Price of 2-Year Bond = $ 94.34
The primary importance of yield to maturity is to allow investors to compare different securities and the yields they can expect from each. Deciding which securities to add to your portfolio is very important. Yield to maturity is the value of the coupon expressed as a percentage of the bond's price. Yield is the return over a specific holding period that takes into account not only coupons but also price changes.
Learn more about Investor here:-https://brainly.com/question/25300925
#SPJ4
What are gestures, signs, or words used to communicate known as?
A.
symbols
B.
signals
C.
indicators
D.
signs
E.
motions
Answers
Answer:
a symbols
Explanation:
Communication is preeminently symbolic. There are two major categories of signals people send: signs and symbols. Signs are the foundation of all communication. A sign designates something other than itself, and meaning is the link between an object or idea and a sign
Stocks and Flows Explain whether each of the items below is a stock or a flow of energy and what an opposite stock or flow would be (i.e. what is a stock that corresponds to the flow, or vice versa) 1. Coal 2. A gas station 3. Waves 4. A nuclear electricity generation plant
Answers
1. Coal: Stock of energy.
2. A gas station: Flow of energy.
3. Waves: Flow of energy.
4. A nuclear electricity generation plant: Flow of energy.
1. Coal is considered a stock of energy because it is a stored form of potential energy. It can be extracted from the ground and stored until it is burned or used to generate electricity. The opposite of a stock of coal would be the flow of energy when coal is burned or used as a fuel source.
2. A gas station is a location where fuel (such as gasoline or diesel) is stored and dispensed. It can be considered a flow of energy because it facilitates the transfer of energy from the fuel source to vehicles. The opposite of a gas station as a flow would be a stock of fuel stored at the gas station.
3. Waves, such as ocean waves, are a form of energy that can be harnessed for various purposes. Waves can be considered a flow of energy because they represent the transfer of energy through the movement of water. The opposite of waves as a flow would be a stock of calm water without any wave motion.
4. A nuclear electricity generation plant involves the conversion of nuclear energy into electrical energy. It is considered a flow of energy because it represents the ongoing process of nuclear reactions generating electricity. The opposite of a nuclear electricity generation plant as a flow would be a stock of nuclear fuel, such as uranium, which is used as a source of energy in the plant.
Learn more about Coal here:
https://brainly.com/question/32347438
#SPJ11
When Denisha sells the jewelry she makes at craft fairs or on her personal website, she is utilizing a(n) ________ marketing channel\
Answers
Based on the fact that Denisha sells her jewellery on her personal website, then she is making use of:
Direct marketing channelWhat is Direct marketing channel?This refers to the process of selling merchandise to the sellers without the use of intermediaries or middlemen.
With this in mind, we can see that because Denisha sells her jewellery directly to the buyers on her personal website, then she is making use of direct marketing channel,.
Read more about marketing channels here:
https://brainly.com/question/25339343
Consider this scenario. during the early 2000s, the midwestern united states experienced a drought, or lack of rainfall. this ruined large amounts of the corn crop. tortillas, which are made from corn, became more expensive to make. what would tortilla manufacturers have needed to do in order to make the same profit? increase the price of tortillas decrease the price of tortillas decrease the supply of tortillas and keep the price the same decrease the supply of tortillas and decrease the price
Answers
Increasing the price of tortillas results in increased profit for the manufacturers.
What exactly is profit?Profit is defined as a monetary gain that can be calculated by subtracting the purchase price from the selling price.
Increasing the price of the tortilla means increasing the gain or profit. This is due to the fact that the above product will cost more money to purchase.
Therefore, option a describes the statement.
Learn more about Profit here:
brainly.com/question/1078746
Answer:
a. increase the price of tortiallas
Explanation:
edge 22
The cost of campaigning requires candidates to conduct extensive
activities.
O community service
O fund-raising
O illegal
O campaigning
Answers
Answer:
fund-raising
Explanation:
Running for a political office is an expensive affair. The candidate and political party require a lot of money to run a successful campaign. To raise funds needed to conduct campaigns, political parties and candidates organize fundraising activities and events.
Community service and campaigning are good platforms to woe voters but cannot generate funds to run for a political office.
Using the information in Extract B, calculate, to 2 decimal places, the profit for the year (net profit) margin for Fevertree Drinks plc in 2016. You are advised to show your working
Answers
Based on the information in Extract B, Fevertree Drinks plc net profit margin in 2016 is 33.6%.
What is the net profit margin?This can be found by the formula:
= Net profit / Sales x 100%
Solving gives:
= 34,301,880 / 102,237,354 x 100%
= 33.6%
In conclusion, the net profit margin for Fevertree Drinks is 33.6%.
Find out more on net profit margin at https://brainly.com/question/14366117.
The local smoothie shop lowers their price on all fruit smoothies. Was this a change in demand or change in quantity demanded?
a
no change
b
change in demand
c
change in quantity demanded
d
change in both
Answers
A. There was no change in demand or quantity
products created for household or family use and intended for daily living are called:
Answers
Products created for household or family use and intended for daily living are commonly referred to as "consumer goods."
Consumer goods are tangible items that are purchased and used by individuals or households for personal use or consumption. They are typically designed to satisfy the needs and wants of consumers in their day-to-day lives. Examples of consumer goods include food and beverages, clothing, furniture, appliances, personal care products, and various household items. Consumer goods can be further categorized into different types, such as durable goods (e.g., appliances, electronics) that are expected to last for an extended period, nondurable goods (e.g., food, toiletries) that are consumed relatively quickly, and services (e.g., haircuts, home cleaning) that provide intangible benefits. Consumer goods play a significant role in the economy, as they contribute to personal consumption expenditures and drive demand in various industries.
Learn more about consumer goods here:
https://brainly.com/question/16679058
#SPJ11
i gtg see ya all HAhahaahahahahaah
Answers
.-.
uhhhh................
*triggered*
Answer:
byeee
Explanation:
explain which types of apartments would best suit to friends to plan to become roommates
Answers
Answer:
depends
Explanation:
it Depends upon what ur friends like try Planing it while sitting down with each other and talk it out
What does it mean to short, or sell short a stock
Answers
Answer:
One way to make money on stocks for which the price is falling is called short selling (or going short). Short selling is a fairly simple concept—an investor borrows a stock, sells the stock, and then buys the stock back to return it to the lender. Short sellers are betting that the stock they sell will drop in price.
Explanation:
Hope it helps
The demand for bread in Ahoma City ranges from 100 to 120 tons per day, every day of the year. The demand is easily satisfied on a daily basis. This demand for bread can be categorized as _____.
Answers
Considering the situation described above, this demand for bread can be categorized as a "static demand."
This is because a static demand is a type of demand that is not flexible at any given point.
Also, demand is said to be static when the change in quantity demand of a commodity is relative to a change in the unit price of a commodity.
Thus, in this case, when the demand for bread in Ahoma City ranges from 100 to 120 tons per day, every day of the year, this is an example of a Static demand because it is stable throughout the year.
Hence, in this case, it is concluded that the correct answer is "Static Demand."
Learn more here: https://brainly.com/question/2888806
Explain one role of the forms of ownership in developing the economy
Answers
One role of the forms of ownership in developing the economy is the provision of jobs.
There are different forms of ownership such as sole proprietorship, partnership, limited liability company, etc.It should be noted that these companies are vital in the provision of jobs to the people. When people have jobs, they can be able to purchase goods and services and improve their living standards.Read related link on:
https://brainly.com/question/24739779
A portfolio of securities with a beta of 1 has produced an average annual return of 12%. Which investment should the portfolio manager NOT consider adding
Answers
The portfolio manager should NOT consider adding an investment with a higher beta.
The beta of a security measures its sensitivity to market movements. A beta of 1 indicates that the security tends to move in line with the overall market. If the portfolio has a beta of 1 and has produced an average annual return of 12%,
it means that the portfolio's performance closely mirrors that of the market. Adding an investment with a higher beta would introduce more volatility and potentially amplify the portfolio's performance fluctuations.
If the new investment has a higher beta, it would be expected to experience larger gains or losses compared to the overall market. Since the goal is to maintain a portfolio that closely tracks the market,
the portfolio manager should not consider adding an investment with a higher beta, as it would deviate from the desired risk-return profile of the portfolio.
To learn more about investment click here
brainly.com/question/15105766
#SPJ11
"Complete question"
A portfolio of securities with a beta of 1.2 has produced an average annual return of 12%. Which investment should the portfolio manager NOT consider adding?
Given forecast errors of -1, 4, 8, and -3, what is the mean absolute deviation?
A. 2
B. 3
C. 4
D. 8
Reset Selection
Autosave failed: please check your network connection before continuing.
DON'T LOSE YOUR WORK! Once your network connection is stable, click the Save button. If you need to exit the assessment before you can save successfully, please copy/paste your short answer or essay responses to your local device or note them separately before closing or refreshing the page.
Answers
For the values of - 1, 4, 8, and - 3, the mean outright deviation is 4.
What is meant by deviation?
The expression "standard normal distribution" alludes to a typical dispersion that has a mean of 0 and an SD of 1. Tables of the standard typical appropriation are regularly used to show various locales of the ordinary conveyance.
The equation for mean deviation is: 6 + 3 + 3 + 2 + 1 + 2 + 6 + 78 = 308 = 3.75. The mean is hence 9 and the mean deviation is 3.75. It uncovers how far all values are on normal from the middle. By and large, 3.75 off from the middle. Think distance while thinking about deviation.
The mean outright deviation is 4.
In this situation,
1+4+8+3 = 16
16/4 = 4.
Learn more about absolute deviation:
https://brainly.com/question/285157
#SPJ4
Insurance can help with ???
Answers
Answer:
B. In an emergency
Explanation:
Insurance is purchased to protect things that you own
Problem 1. On January 1, 2019, Coco Corp. purchased $450,000 of 6% bonds, interest payable on January and July 1, for $428,800 (a 7% effective interest rate). The bonds mature on January 1, 2025. Record amortization and interest revenue on the appropriate dates by the effective-interest method (round to the nearest dollar). (Assume bonds are non-trading.)
Instructions
(a) Prepare the entry for January 1, 2019.
(b) The bonds are sold on October 1, 2019 for $427,000 plus accrued interest. Prepare all e required to properly record the sale.
Answers
(a) Prepare the entry for January 1, 2019.
Here is the journal entry for January 1, 2019:
Cash ($450,000 × 6% × 1/2) - $13,500
Investment in Bonds - $415,300
Premium on Bonds - $28,200
(b) The bonds are sold on October 1, 2019 for $427,000 plus accrued interest. Prepare all e required to properly record the sale.
Here is the journal entry for October 1, 2019:
Cash - $436,017
Investment in Bonds - $415,300
Premium on Bonds - $20,700
Gain on Sale of Bonds - $27,017
The amount of gain on sale is calculated as follows:
Selling price ($427,000 + $5,700) - Purchase price ($428,800) - Amortization ($1,083) = Gain on sale ($27,017).
J Griffiths business has a rate of inventory turnover of 7 times per year. Average inventory is E35 000. Mark up is 40%. Expenses are 60% of gross profit. Calculate a) gross profit b) turnover c) total expenses d) net profit
Answers
Explanation:
To calculate the required values, let's go step by step:
Given information:
Inventory turnover rate = 7 times per year
Average inventory = E35,000
Mark up = 40%
Expenses = 60% of gross profit
(a) Gross Profit:
Gross Profit can be calculated using the formula:
Gross Profit = Net Sales - Cost of Goods Sold
To calculate the Cost of Goods Sold (COGS), we need to find the average inventory value using the turnover rate:
COGS = Average Inventory / Inventory Turnover
COGS = E35,000 / 7
COGS = E5,000
The selling price can be determined by adding the mark-up percentage to the cost price:
Selling Price = Cost Price + (Mark up % * Cost Price)
Selling Price = E5,000 + (40/100 * E5,000)
Selling Price = E5,000 + E2,000
Selling Price = E7,000
Now, we can calculate the Gross Profit:
Gross Profit = Selling Price - Cost of Goods Sold
Gross Profit = E7,000 - E5,000
Gross Profit = E2,000
(b) Turnover:
The turnover is already given as 7 times per year.
(c) Total Expenses:
Total Expenses are 60% of the Gross Profit.
Total Expenses = 60/100 * Gross Profit
Total Expenses = 60/100 * E2,000
Total Expenses = E1,200
(d) Net Profit:
Net Profit is calculated by subtracting Total Expenses from Gross Profit.
Net Profit = Gross Profit - Total Expenses
Net Profit = E2,000 - E1,200
Net Profit = E800
Therefore:
(a) Gross Profit = E2,000
(b) Turnover = 7 times per year
(c) Total Expenses = E1,200
(d) Net Profit = E800
A ________ is a list of questions that encourage the writer to think about audience, purpose, key issues, and delivery.
A) general guide
B) writing startup sheet
C) rough draft
D) outline
Answers
A writing startup sheet is a list of questions that encourage the writer to think about audience, purpose, key issues, and delivery. So, the correct answer is B) writing startup sheet.
A writing startup sheet is a document that provides a list of questions to help a writer plan and organize their writing project. This sheet includes questions that encourage the writer to think about their target audience, purpose of the writing, key issues to address, and how to deliver their message effectively.
By answering these questions, the writer can gain a clear understanding of what they need to accomplish with their writing and how to go about it. The writing startup sheet serves as a useful tool to ensure that the writer stays focused and on track throughout the writing process.
It can also help prevent writer's block and improve the quality of the final product by ensuring that all important elements are included.
To know more about writing refer here:
https://brainly.com/question/3379408#
#SPJ11
According to the neoclassical market clearing model, with lump sum taxes and exogenous labour supply, a temporary increase in government purchases A[] increases current GDP and consumption. B)[ ] increases investment and future GDP. C[ ] increases the interest rate on long term bonds. D[ ] B and C. E)[ ) none of the above
Answers
According to the neoclassical market clearing model with lump-sum taxes and exogenous labor supply, a temporary increase in government purchases would have the following effects:
ncreases current GDP and consumption.This statement is not accurate. In the neoclassical model, a temporary increase in government purchases does not necessarily lead to an increase in current GDP and consumption. The model assumes that prices are perfectly flexible and that markets clear, meaning that any increase in government purchases would be offset by a decrease in private consumption or investment. The level of GDP remains unchanged in the long run.
learn more about temporary here :
https://brainly.com/question/1443536
#SPJ11