I see this job as a opportunity to contribute to an forward thinking industry. I feel that that my skills would be something great to share with the team .
Answer: reduced by $80 billion
Explanation:
An expansionary gap is when the actual output is more than the potential output. From the question, we are told that an economy is operating with output $400 billion above its natural level, and fiscal policymakers want to close this expansionary gap and that the central bank agrees to adjust the money supply to hold the interest rate constant, so there is no crowding out.
We are also given the marginal propensity to consume is 4/5, and told that the price level is completely fixed in the short run.
To close the expansionary gap, the government would need to reduce its spending. To solve this, we have to calculate the multiplier. This will be:
Multiplier = 1/(1 - MPC)
= 1/(1 - 4/5)
= 1/1-0.8
= 1/0.2
= 5
Therefore, the government expenditure or spending will be reduced by:
= $400 billion/5
=$80 billion
Ethics.
Business ethics is a system of ethical principles for acting fairly and honestly in the workplace and with customers and companies.
Answer:
D. trade-offs associated with financial decisions.
Explanation:
Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.
Let's assume Martin can produce either 5 jeans or 10 shirts in one hour. If Martin decides to produce jeans instead, his opportunity cost are the shirts he trades off when he decided to produce jeans.
I hope my answer helps you
