Answer:
<em>$450 billion</em>
Explanation:
<em>GDP</em>
The GDP is the total market value of goods and services produced in a country in a given period. It can be determined by adding expenditures made by the government, household, firms and the net export.
<em>Multiplier</em>
The real GDP value will change if there is a change in any of the components that make it up. However, a $ change in its autonomous expenditure will produce more than a proportionate change in the real GDP. The is the called the <em>multiplier effect.</em> The greater amount by which the real GDP will change as a result of a change in any of its components is called the <em>multiplier- it is usually a figure. </em>It is calculated with the formula below:
The multiplier = 1/(1-MPC)
The multiplier figure depends on the MPC as shown above. The MPC is the portion spent from any additional income earned. If I spent only $60 out of a $100 increase in my income, then MPC is 0.6.
<em>Change in real GDP</em>
The maximum amount by which the real GDP will change can be ascertained by the formula below:
Maximum change in real GDP = Multiplier × change in expenditure
<em>Decrease in real GDP</em> = 1/(1-0.8) × 10 = $50
<em>The new level of GDP </em>= Initial GDP - decrease in GDP
= $500- $50= $450
Suppose that a natural disaster substantially increase the cost of producing cheese, we would predict that the equilibrium quantity of cheese will decrease and the equilibrium price of cheese will increase because natural disasters can have a negative effect on the supply of the cheese. So, using the supply and demand curve, this will cause the supply to shift left while making demand curve steady since the effect will be on the supply part and not affecting the demand of the cheese.
high intrest rate is amount is more come
time also low
that's wise
Answer:
Paul Hyatt is fully liable for all business debts
Explanation:
Unlimited liability in this scenario, means that Paul Hyatt is fully liable for all business debts. That is because unlimited liability is defined as the full legal responsibility that business owners and partners assume for all business debts, and since Paul Hyatt is a sole proprietor which means that he both owns and runs DeepCleans and there is no legal distinction between him and the business entity, then he is fully liable for debts and profits of DeepClean.
