Answer:
$200 (million)
Explanation:
If the government spending increases by $200 million, then associated change in equilibrium income will be $ 200 million, assuming that Marginal Propensity to Consume (MPC) is 1
Answer:
$22
Explanation:
Given that,
Acquisition cost of product ALPHA = $24
Net realizable value for product ALPHA = $23
Normal profit for product ALPHA = $1.00
Market value (replacement cost) for product ALPHA = $21
By applying LCM, the per unit inventory value is determined by deducting the normal profit from the Net realizable value for product.
Per unit inventory value:
= Net Realizable Value - Normal Profit
= $23 - $1.00
= $22
Therefore, the proper per unit inventory value for product ALPHA applying LCM is $22.00.
Answer:
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Answer:
less than the government spending multiplier
Explanation:
Given :
Percentage spends by a households for the increase in the income = 75%
So the mpc = 0.75
Potential output = 600 billion arcs
The government multiplier is = 

= 4
The tax multiplier is = 

= 3
Thus we see that the tax multiplier is less than the government spending multiplier.