Answer: $460 billion, but the effect would be larger if there were an investment accelerator.
Explanation:
If the MPC = 0.75 and there is no investment accelerator or crowding out, then a $115 billion increase in the government expenditures would result in the shift in the aggregate demand curve right by:
= $115 billion ÷ (1 - 0.75)
= $115 billion ÷ 0.25
= $115 billion × 1/0.25
= $115 billion / 0.25
= $460 billion.
Therefore, there'll be a shift in the aggregate demand curve right by $460 billion, but the effect would be larger if there were an investment accelerator
1.A.The mission of the System
2.C.Losses
3.B.Operational Characteristics
Explanation:
No matter how bold or ambitious your plans are to grow your business, the key to your business's success lies in three critical, interdependent components: operational excellence, customer relations/communications and financial management.
Answer:
Hubs Sprockets
Direct Materials 29 17
Direct Labor 13.3 5.7
Overhead 14.65 0.24
Unit Cost 56.95 22.94
Explanation:
<u><em>Labor:</em></u>
Hubs: 0.7 hours per unitx 19 labor rate = $13.3
Sprockets 0.3 x 19 = $5.7
<u><em>Direct Materials:</em></u>
Hubs $29
Sprockets $17
<u><em>Overhead rate</em></u>
Activity Pool Hub Sprockets
Machine Setups 225 125(55.56%) 100(44.44%)
Special processing 3900 3900
<u>Machine Setups</u>
27,000 x 55.56% /13,000 units: $ 1.1538
27,000 x 44.44% / 50,000 units $ 0.24
<u>Special Processing</u>
175,500/13,000 = $13.5
Total overhead
sprockets: $0.24
hubs: $14.65
Units cost:
hubs: 13.3 + 29 + 14.65 = 56.95
sprockets: 5.7 + 17 + 0.24 = 22.94