If the multiplier of government spending is 1.30 and government spending is increased by $150 billion, -165billion the amount by Shift of the demand curve will ultimately shift.
The spending multiplier algebra can be used to determine how much government spending would need to increase to bring the economy back to potential GDP when full employment occurs. Total Expenditure = C + I + G + (X - M).
The multiplier of government effect refers to the theory that government spending intended to stimulate the economy increases private spending, which in turn stimulates the economy. Essentially, this theory posits that government spending will bring additional income to households, leading to increased consumer spending.
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Answer:
So, accounting rate of return = 33 %
Explanation:
given data
net income after tax = $179,850
initial cost = $545,000
time = 7 year
salvage value = $34,000
we will get here the accounting rate of return
solution
as we know that accounting rate of return is express as
accounting rate of return = Net income ÷ initial investment .................1
put here value and we get
accounting rate of return = 
So, accounting rate of return = 33 %
Answer:
d. Need more information.
Explanation:
Demand elasticity is a microeconomic concept that aims to measure the sensitivity of demand in the face of price changes.
When calculated, elasticity reaches values that signal consumers' response to price. If elasticity is a value between 0 and 1, then demand is inelastic - little sensitive to price changes. If demand is greater than 1, this means elastic - very sensitive to price changes.
The numbers presented by the question show a highly elastic demand for theater ticket prices in both cases, especially in the afternoon shift. Thus, the theater could lower the price of both, because in elastic demands, a negative variation in price will increase the demand. However, this is not enough to calculate profit maximization since the profit calculation formula also involves costs, which are not described in the question.
