<span>Annualized consumption dropped immensely in November 2008. The 5 years prior to 2008 were some of our strongest yet, also, a GDP of $14 trillion is nothing to balk at. I am thoroughly surprised that the decline we experienced then came so soon after a long streak of winning.</span>
Answer:
A) 20 billion
Explanation:
Y = AD
= C + I + G
C = A + cY
A - Autonomous Consumption
c - MPC
Y = A + cY + I + G
Y - cY = A + I + G
Y(1 - c) = A + I + G
Y = (A + I + G)*1/(1 - c)
Taking derivative with respect to goverement purchase
dY/dG = 1/(1 - c)
( here d is represting del we are representing partial derivative.)
1/(1 - c) = Multiplier
dY = Multiplier*dG
= 5*15
= 75
75 = horizontal distance between AD1 & AD2
55 = horizontal distance between AD1 & AD3
Extent of crowding out = 75 - 55 = 20
Therefore, the Extent of crowding out is 20 billion.
Answer:
B
Explanation:
I would assume the correct answer would be B. This is because when you go to a store you typically assume the higher cost item is of higher quality then the lower cost item. For example: One may buy a yeti cooler over an igloo cooler because the very high price tag makes them feel as if the cooler is just that much better then the competitor. If correct please mark brainliest.
True, because producer decisions are motivated by the attempt to earn profits.18. Consider the following statement: “Competition is the disciplinarian of the market economy.”This statement istrue, because when producers face competition they are driven to provide goods and services at the lowest possible cost.19. Some large hardware stores such as Home Depot boast of carrying as many as 20,000 different products in each store. This volume of goods is the result ofthe choice of consumers regarding what to purchase to satisfy their wants and the choice of producers regarding what to produce to maximize profits.
