Toyota will bring hybrid electric automobiles to market next year priced at $27 comma 000 (this includes a $6 comma 750 feder
1 answer:
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Answer and explanation:
a)
This investment tax credit will lead to a surge in the investment demand, because of the benefits that the firms receive from the investment tax credit. More and more firms will undertake investments leading to an increase causing the IS curve to shift to the right.
<em>This implies that the output and GDP will increase in the short run. </em>
(check image file 1 attached)
b)
The increase in the demand for US goods will lead to an increase in the capital inflow for the country, the exports will increase, and the IS curve will shift to the right.
<em>This implies that the output and GDP will increase in the short run</em>
(check the attached image file 2)
c)
US consumers' infatuation with goods and services from New Zealand is going to increase the imports of the country. While it may also reduce the domestic consumption spending. This, however, will affect the country by shifting its IS curve to the left.
<em>This implies that the output and GDP will decrease in the short ran. </em>
(check image file 3)
d)
Though the prices of the houses will fall sharply, increasing the affordability of the houses but the confidence of the people in real estate will be shaken. This would lead to a fall in the housing investment. This fall in investment will shift the IS curve to the left.
<em>This implies that the output and GDP will decrease in the short run.</em>
check image file 4
Answer:
Let's assume that "X" be the number of employees in 2000.
∵ it's given :
From 2000 to 2003: the number of employees increased by a factor of 1/4
From 2003 to 2006: the number of employees decreased by a factor of 1/3
∴ We can equate the following details:
X×(increase in employee)×(decrease in employee) = 100
X×()×(
) = 100
X×()×(
) = 100
X×() = 100
X = 100×()
<em>X = 120 </em>
<u><em>Therefore, the correct option is (b)</em></u>