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sesenic [268]
3 years ago
14

Suppose that real GDP is currently ​$13.55 trillion and potential real GDP is​ $14.0 trillion, or a gap of ​$500500 billion. The

government purchases multiplierLOADING... is 5.05.0​, and the tax multiplier is 4.04.0. Holding other factors​ constant, by how much will government purchases need to be increased to bring the economy to equilibrium at potential​ GDP?
Business
1 answer:
Georgia [21]3 years ago
6 0

Answer:

$100 billion

Explanation:

Real GDP is currently = ​$13.55 trillion

Potential real GDP =​ $14.0 trillion

Gap = ​$500 billion

Government purchases multiplier = 5.0

Tax multiplier = 4.0

To increase aggregate demand by $500 billion, the required increase in government expenditure is:

= (1 ÷ government purchases multiplier) × change in aggregate demand

= (1 ÷ 5) × $500

= $100 billion

Therefore, the government expenditure need to be increased by $100 billion.

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What is organizing in business management
melamori03 [73]

Answer:

Organizing involves assigning tasks, grouping tasks into departments, delegating authority, and allocating resources across the organization. ... Before a plan can be implemented, managers must organize the assets of the business to execute the plan efficiently and effectively.

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3 years ago
What was the first product sold by heinz in 1869?
pickupchik [31]
Heinz tomato ketchup
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3 years ago
Question 6
AleksAgata [21]

Answer:

The answer is,

O To raise money for the corporation.

Explanation:

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3 years ago
When the opportunity cost associated with increasing the production of one good or service in terms of another is constant at ev
amid [387]

When the opportunity cost associated with increasing the production of one good or service in terms of another is constant at every level of production, then the production possibility frontier is Linear.

Opportunity costs address the potential advantages that an individual, financial backer, or business passes up while picking one option over another. Since opportunity costs are inconspicuous by definition, they can be barely noticeable.

Opportunity Costs= Absolute Income - Monetary Benefit.

The Production Possibility Frontier (PPF) is a bend on a chart that shows the potential amounts that can be delivered for two items if both rely on a similarly limited asset for their production. The PPF is additionally alluded to as the creation probability bend.

To learn more about Production Possibility Frontier is linear.

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7 0
2 years ago
Beckman Enterprises purchased a depreciable asset on October 1, Year 1 at a cost of $120,000. The asset is expected to have a sa
AysviL [449]

Answer: 50400

Explanation:

- Straight-line rate= 100%/ 5 years= 20%

- Double declining Expense= 20% x 2= 40%

From Oct1 to Dec 31 is 9 months/ 12 months a year

- Depreciation Expense year 1= $120000x 0.4x 9/12= $36000

- Book value year 1= beginning year 2= $120000-$36000= $84000

- Book value year 2= $84000- ($84000x0.4)= $50400

8 0
3 years ago
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