Answer: The recessionary gap will be equal to 1 trillion yen divided by 2.5 or 0.4 trillion yen
Explanation:
From the question, we are informed that GDP gap of 1 trillion yen and the marginal propensity to consume (MPC) is 0.60. Also, to close the GDP gap, the prime minister has decided to increase government spending. This means that there will be a recessionary gap because the actual GDP will be less than the potential GDP.
Fir the economy to be brought to its potential GDP, the spending of the government will give a stimulus to the economy. Since MPC is 0.6, the multiplier will be:
= 1/1-MPC
= 1/1 - 0.6
= 1/0.4
= 2.5
The government spending will then increase in order to close the recessionary gap as:
∆Y = ∆G × Multiplier
100 = ∆G × 2.5
∆G = 100/2.5
∆G = 40
Therefore, the recessionary gap will be equal to 1 trillion yen divided by 2.5 or 0.4 trillion yen.
Answer:
.91 pints of irish beer per pint of Australian beer
Explanation:
As we know that
The exchange rate of
1 AUD = 0.5 pound
Now
In Ireland, 1 beer cost = 2.2 pound
And, in Australia, 1 beer cost = 4 AUD
As 1 AUD = 0.5 pound
so 4 AUD is
= 0.5 × 4
= 2
Now the exchange rate is
= 4 AUD beer cost ÷ 1 beer cost in Ireland
= 2 ÷ 2.2
= 0.91
hence, the real exchange rate is 0.91
GDP per capita for this year is $5000
GDP per capita for next year is $4760
GDP per capita for next year is $5100
<h3>What is the GDP per capita?</h3>
GDP per capita is the gross domestic product of a country divided by the total population of that country.
GDP per capita = GDP / population
GDP per capita for this year = $10 billion / 2 million = $5000
GDP per capita for next year = $10 billion / ( 2 x 1.05) = $4760
GDP per capita for next year = (10 billion x 1.03) / ( 2 x 1.01) = $5100
To learn more about GDP, please check: brainly.com/question/15225458
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<span>A large community centre would be ideal for the community as it can be used to improve and enrich the lives of its citizens. Building a large facility could create a demand making it an attraction, bringing in outside business into the community which in turn would spin off to other local businesses. On the other hand the building cost incurred and future running cost of the centre may be drastically affected if there is no great demand for such a facility.</span>
Answer:
C.- ↓Holding Cost = ↑Economic Order Quantity
Explanation:
Economic Order Quantity = square root of (2DS/H)
<u>Where:</u>
Demand and setup are in the dividend part, if they increase, the EOQ increase.
Holding cost goes in the divisor, if they increase the EOQ decrease
A- FALSE ↑Holding Cost ≠↑Economic Order Quantity
B- FALSE ↑Demand ≠↑EOQ
C.- Correct ↓Holding Cost = ↑Economic Order Quantity
The divisor is lower, so the value increase.
