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2 years ago

An increase in government spending shows up exclusively as a change in real gdp when?

Business

1 answer:

IRINA_888 [86]2 years ago

3 0

It shows up exclusively when the price level is assumed to be constant.

Real gross domestic product (real GDP), also known as constant-price GDP, inflation-corrected GDP, or constant dollar GDP, is an inflation-adjusted metric that measures the value of all goods and services generated by an economy in a given year (expressed in base-year prices).

Real GDP is a macroeconomic metric that accounts for inflation and quantifies the worth of the products and services generated by an economy over a given time period. In essence, it calculates a nation's overall economic production after accounting for price changes.

Governments analyze economic growth and purchasing power over time using both nominal and real GDP as measurements. The GDP price deflator, also known as the implicit price deflator, which tracks changes in prices for all products and services produced in an economy, is used to do this.

A quarterly report on GDP is released by the Bureau of Economic Analysis (BEA), and it includes headline data figures that reflect real GDP levels and real GDP growth.

Therefore, An increase in government spending shows up exclusively as a change in <u>real GDP</u> when the price level is assumed to be constant.

For more information on GDP, refer to the given link:

brainly.com/question/14326341

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4 years ago

Why would a business choose to buy supplies from another country

jasenka [17]

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4 years ago

Read 2 more answers

During 2020, Harvey Industries reported cash provided by operations of $670,000, cash used in investing of $1,039,000, and cash

mina [271]

Answer:

$266,000

Explanation:

The formula to compute the free cash flow is shown below:

Free Cash flow = Operating cash flow - capital expenditure

= $670,000 - $404,000

= $266,000

The operating cash flow is come from cash provided by operations and capital expenditure is the cash spent for fixed assets

All other information which is given is not relevant. Hence, ignored it

5 0

3 years ago

The Broadmoor Hotel in Colorado Springs, Colorado, maintains its five-star rating by focusing on five service characteristics: r

Advocard [28]

Answer:

The correct answer would be, Tangibles.

Explanation:

Tangibles are the things that can be touched by hand. Anything that can be physically felt and touched are considered in the category of tangibles.

So in this question, the five service characteristics are Reliability, Responsiveness, Assurance, Empathy and Tangibles.

Now the hotel has been updating its rooms to meet the 21st century visitors' needs which were built in the 20th Century. The hotel management has spent millions in terms of improvements, renovation and adding new outdoor pool complex, which means that the company has spent and spends millions on the physical decoration and improvements of its hotel and its rooms. So these are the tangibles on which the company has spent a lot. These renovations focus on the Tangible Service Characteristic.

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3 years ago

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Highfill Corporation's variable overhead is applied on the basis of direct labor-hours. The standard cost card for product D80D

Dmitry_Shevchenko [17]

Answer:

Manufacturing overhead rate variance= $3,741 unfavorable

Explanation:

Giving the following information:

The standard variable overhead rate is $6.10 per direct labor-hour.

During the most recent month, 1,300 units of product D80D were made and 8,700 direct labor-hours were worked. The actual variable overhead incurred was $56,770

To calculate the variable overhead rate variance, we need to use the following formula:

Manufacturing overhead rate variance= (standard rate - actual rate)* actual quantity

actual rate= 56,770/8,700= $6.53 per hour

Manufacturing overhead rate variance= (6.1 - 6.53)*8,700

Manufacturing overhead rate variance= $3,741 unfavorable

4 0

4 years ago