Which of the following best explains what a career in public planning is like?

A country is in the midst of a recession with real GDP estimated to be $4.5 billion below potential GDP. The government's policy

VARVARA [1.3K]

Answer:

a. The government needs to increase spending by $0.45 billion and decrease taxes by $0.5 billion.

b. The real GDP will fall short of potential GDP by $3.6 billion.

c. The real GDP will fall short of potential GDP by $4 billion.

d. If government overestimates MPC change in spending or taxes will be too small.

Explanation:

The GDP gap is $4.5 billion.

a. The marginal propensity to consume is 0.90.

Government spending multiplier

= $\frac{1}{1-MPC}$

= $\frac{1}{1-0.9}$

= 10

The government needs to increase spending by

= $\frac{GDP\ Gap}{Government\ spending\ multiplier}$

= $\frac{4.5}{10}$

= $0.45 billion

Tax multiplier

= $\frac{-MPC}{1-MPC}$

= $\frac{-0.9}{1-0.9}$

= -9

The government needs to decrease taxes

= $\frac{GDP\ Gap}{Tax\ multiplier}$

= $\frac{4.5}{9}$

= $0.5 billion

b. The marginal propensity to consume is 0.50.

Government spending multiplier

= $\frac{1}{1-MPC}$

= $\frac{1}{1-0.5}$

= 2

If the government increases spending by $0.45 billion,

The real GDP will increase by

= $Increase\ in\ spending\ \times\ Spending\ multiplier$

= $\$ 0.45\ \times\ 2$

= $0.9 billion

The real GDP will fall short of potential GDP by

= $4.5 billion - $0.9 billion

= $3.6 billion

c. Tax multiplier

= $\frac{-MPC}{1-MPC}$

= $\frac{-0.5}{1-0.5}$

= -1

If the government decreases taxes by $0.5 billion

The real GDP will increase by

= $$0.5\ billion\ \times 1$

= $0.5 billion

The real GDP will fall short of potential GDP by

= $4.5 billion - $0.5 billion

= $4 billion

d. If the government overestimates the value of the MPC, then its change in spending or taxes will be too small and real GDP will fall short of potential GDP.

4 0

3 years ago

Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below: Division Queensland New South

PtichkaEL [24]

Answer:

Queensland 14.7%

New South Wales is 24.0%

Explanation:

This is a case of modified return on investment since the question was specific that the return on investment should in terms margin and assets turnover.

The first task would be to compute margin and turnover whereas the return on investment would be the multiples of both performance measures.

Margin =operating income/sales

Asset turnover=sales/average operating assets

operating income/sales*sales/average operating assets=operating income/average assets

This question also require proofing the above formula as I have done.

Margin Assets turnover ROI

Queensland$82,320/$784,000=10.5%$784,000/$560,000=1.4 14.7%

South Wales$118,800/$1,485,000=8% $1,485,000/$495,000= 24.0%

R0I=margin*assets turnover

Queensland=10.5%*1.4=14.7%

New south sales=8%*3=24%

8 0

3 years ago

__________________ are ways that a nation can draw up regulations, inspections, and paperwork to make it more costly or difficul

Diano4ka-milaya [45]

Answer: Nontariff barriers

Explanation:

Nontariff barriers are trade barriers that are used whereby the import and export of goods and services are restricted. It should be noted that the restriction is not by tariffs but can include include embargoeds, quotas, sanctions, and levies.

The main reason for trade barriers are to generate revenue for the government and also to protect the local industries.

8 0

3 years ago

Which sentence best demonstrates an appropriate style for an argumentative essay? anyone who believes we should increase taxes i

oee [108]

I believe the answer is: Increasing taxes would place an unnecessary hardship on the citizens and should be avoided

Argumentative essay refers to a type of essay that is created in order to convince other people to adopt a certain idea or opinion. Appropriate style for an argumentative essay usually include clear correlation on how a certain action or choice would resulted in a certain situation/results , just like the sentence above.

4 0

3 years ago

Read 2 more answers

What is the input, conversion, and output of operating a summer band camp?

sesenic [268]

Input is the object, the material, the information, land, equipment, money, knowledge we fed into a process.
Output is the created product (good or service) that provide added value to customers. And the process that makes conversion from the input into the output is the operations management.
In our case the final product is operating a summer band camp. The input are materials, buildings (where the camp will be located), hiring staff, but also non-material things -advertising for example. The conversion is rebuilding, interviewing staff.. and the output is opened summer band camp, satisfied customers and hired staff .

7 0

4 years ago