Answer:
$140
Explanation:
Calculation for What is the least amount the government can spend to overcome the $350 billion gap
First step is to find the Multiplier using this formula
Multiplier=1(1-Marginal propensity)
Let plug in the formula
Multiplier=1/(1-0.6)
Multiplier=1/0.4
Multiplier=2.5
Now let calculate the least amount the government can spend using this formula
Least amount=Gap/Multiplier
Let plug in the formula
Least amount=$350 billion /2.5
Least amount=$140
Therefore the least amount the government can spend to overcome the $350 billion gap is $140
Answer:
c. fall primarily on employees
Explanation:
As the demand for labor is elasticc (if the business is not profitable will close) while the supply of labor more inelastic (worker had to work to sustain their living standards) the burden of taxation while in fact is assumed to be distributed equally what occurs is that labor is decrease to make the total cost (base wage plus taxes) the amount the employeer are willing to pay for the employee
