If, in a specific year, exports are $40 billion, business expenditures are $60 billion, the government collects $50 billion in t
1 answer:
The fiscal deficit for the government for the current year will be $20 billion for the given condition.
<h3>What is fiscal deficit?</h3>The condition where there is an excess of expenditures over the income during a given financial period, it is known as fiscal deficit. The computation of fiscal deficit using the formula and the given information will be,
Fiscal Deficit = (Total Income – Total Expenditure)
Fiscal Deficit = $50 billion – $70 billion = -$20 billion
Hence, option C holds true regarding fiscal deficit. The complete question has been attached in the image for better reference.
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Answer: f. Supply of manufactured houses shifts leftward and manufactured houses increase in price
Explanation:
All else being equal, when the price of an input into the production process increases, it makes producing the goods in question more expensive and so producers will respond by reducing production levels to maintain Profitability.
As the price of cement rises, making manufactured houses becomes more expensive and so the makers of manufactured houses will reduce the number of manufactured houses they make. This will reduce Supply thereby shifting the Supply Curve to the left. The new Equilibrium level will indicate a higher Equilibrium price as shown in the attached graph.
