1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
Telecommuters are not key to a business continuity plan (BCP) because they work from remote locations. Therefore, any disruption
Marrrta [24]

Answer:

This false

Explanation:

A telecommuter is a remote worker that does his or her job from home and when it is time to have communications with their office, they do so through emails, fax, phone or the internet. the BCP is the ability of the organization to continue with its services and production even after a disruption occurred in the business.

A disruption in the business is capable of affecting the telecommuter too. Working remotely does not make their job less important

8 0
3 years ago
suppose that a college physics experiment goes horribly wrong and releases an electronic pulse that renders all electronic equip
Ainat [17]

After the accident, the wages earned by Ohio workers will decrease because the marginal productivity of Ohio workers will decrease. Thus the correct answer is A.

<h3>What are wages?</h3>

Wages are referred to as payments received by daily workers. This payment is done on an hourly or daily basis to the blue-collar people who worked in factories or in construction sites.

The release of an electronic pulse in the city will decrease the wages earned by Ohio workers as marginal productivity of workers will decrease due to limited demand and negative impact on employees.

Therefore, option A is appropriate.

Learn more about wages, here:

brainly.com/question/13847060

#SPJ4

6 0
1 year ago
The substitution effect of an increase in the price of Raisin Bran refers to Select one: a. the decrease in the demand for Raisi
EleoNora [17]

Answer:

the fact that the higher price of Raisin Bran relative to its substitutes, such as Cheerios, causes consumers to buy less Raisin Bran.

Explanation:

the substitution effect arises when as a result of a rise in the price of a good, the good becomes more expensive relative to its substitutes. Consumers not consume less of the good and more of the substitute. This leads to a movement up along the demand curve for that goods and not a movement along the demand curve for the good and not a shift of the demand curve.

If the price of the good increases. The good becomes cheaper when compared with substitutes. As a result, the demand for the good increases while that of the substitutes decreases.

The income effect is when an increase in price lowers consumer's purchasing power, holding money income constant.

5 0
2 years ago
Which of the following tactics might public sector unions use to increase management's cost of disagreeing with the union positi
rjkz [21]

Answer:

D. All the above are legal tactics that the union can use to pressure management to accept the union's position on an issue.

Explanation:

Each and everyone one of the options mentioned above are tactics adopted by the union in pressuring management to accept their position on most of the issues which they have or are arguing about.

5 0
3 years ago
The other day, you had to remember some items for an important exam. you are sure you studied them and knew them before you ente
ahrayia [7]
Sometimes when people are under pressure they forget things that they have memorized. Sometimes its answers for a test and sometimes they forget how to walk, your body will just shut down under pressure.
Just try to relax and think of something else of a few, then move on to the next question, it will come back to you.
3 0
3 years ago
Other questions:
  • Vladimir is a manager at Auttowort Inc., an automotive plant in the United States. Auttowort has started expanding to other coun
    5·1 answer
  • Frederic Taylor applied the scientific method to management. In many cases, this meant measuring a process to determine its opti
    5·1 answer
  • Edwards Auto Body uses a job order cost system. Overhead is applied to jobs on the basis of direct labor hours. During the curre
    5·1 answer
  • Taco Bell and McDonald’s are considering adding kiosks in restaurants for customers to place their orders. This will hopefully m
    15·1 answer
  • Given the market for illegal drugs, when thegovernment is successful in reducing the flow ofdrugs into the United States,
    8·1 answer
  • What is the policy used most by the Fed to change the money supply?
    14·1 answer
  • Consider three different closed economies with the following national income statistics. Country A has taxes of $40 billion, tra
    8·1 answer
  • The manager of the customer service division of a major consumer electronics company is interested in determining whether the cu
    13·1 answer
  • To achieve organizational goals in large, complex organizations, which components must function together
    14·1 answer
  • An individual who achieves ___ through other people by the use of organizational power is a manager.
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!