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
uranmaximum [27]
3 years ago
15

As an elected official, you have been informed that real GDP is below its potential and that action should be taken to encourage

economic growth and bring the economy to its long-run equilibrium. If the marginal propensity to consume is 0.8 and the amount of new government spending is $600 billion, by how much would the economy be stimulated? A. $3,000 billion B. –$3,000 billion C. $600 billion D. –$600 billion E. $480 billion
Business
1 answer:
DedPeter [7]3 years ago
8 0

Answer:

The correct answer is option A.

Explanation:

An economy is operating below its potential level.  

The marginal propensity to consume is 0.8.

The amount of new government spending is $600 billion.  

The change in the GDP will depend on the size of the spending multiplier.  

ΔGDP  

= \frac{1}{1-MPC}\ \times\ \Delta G

= \frac{1}{1-0.8}\ \times\ 600

= \frac{1}{0.2}\times\ 600\

= $3,000 billion

You might be interested in
What is an organizing approach used by labor where employees sign a card of support if they want unionization, and if 50 percent
kumpel [21]

Answer:

Card check (also called majority sign-up) is a method for employees to organize into a labor union in which a majority of employees in a bargaining unit sign authorization forms, or "cards", stating they wish to be represented by the union.

if 50 percent of the workforce plus one worker sign a card, the union considers it a victory? Yes

Explanation:

the unionization process is:

The process of organizing the employees of a company into a labor union which will act as an intermediary between the employees and company management. In most cases, it requires a majority vote of the employees to authorize a union.

Authorization Card Law and Legal Definition. An authorization card is a form signed by an employee to designate a union as his or her bargaining agent. ... If the union gets cards signed by 30% of the employees in an appropriate voting unit (i.e. within a store), it can petition the NLRB for an election.

4 0
4 years ago
The Federal Reserve Act Multiple Choice helped to reduce loans to private banks. was regulated by a board whose members were ele
salantis [7]

The correct answers are A) helped to reduce loans to private banks and C) created a new type of paper currency.

The Federal Reserve Act helped to reduce loans to private banks and created a new type of paper currency.

With the passing of the Federal Reserve Act of December 23, 1919, signed by President Woodrow Wilson, the government initiated with the Federal Reserve system that acted as the Central Bank of the United States. It had twelve regional banks that supplied all the money for the country. Its headquarters are located in Washington D.C., and the commonly known as the Fed supervises the financial and economic situation in the country, the monetary supply, and tries to control inflation.

6 0
3 years ago
At year-end, Chief Company has a balance of $10,000 in accounts receivable, of which $9,000 is within 30 days and $1,000 is over
vlada-n [284]

Answer:

  • What is the amount of bad debt expense?

Bad debt expense $ 90

Explanation:

The initial account balance was

  • Initial Balance  

Accounts Receivable $ 10,000  

Allowance for Uncollectible Accounts  $ 100

The aging of accounts receivable method indicates that the Allowance for Uncollectible Accounts must have a $190 balance.

Acc. Rec  Allow.  

$ 9,000   $ 90 1% 1-30 days

$ 1,000    $ 100 10% more than 30 days

$ 10,000   $ 190  

The journal entry adjustment add up to the balance of Allowance for Uncollectible Accounts to complete the $190 indicated by the aging of accounts receivable method.

Bad debt expense $ 90  

Allowance for Uncollectible Accounts  $ 90

  • So the final balance of accounts are:

Final Balance  

Accounts Receivable $ 10,000  

Allowance for Uncollectible Accounts  $ 190

7 0
4 years ago
The stock market represents a small business true or false ?
Alex787 [66]
The answer would be false. 
7 0
3 years ago
The price of oil fell dramatically in 2015. what sort of macroeconomic shock would this be
Anna11 [10]
Yes it did I’m just tryna get the app bro
4 0
3 years ago
Other questions:
  • Which three documents are necessary during home buyer prequalification?
    5·2 answers
  • M. cotteleer electronics supplies microcomputer circuitry to a company that incorporates microprocessors into refrigerators and
    15·1 answer
  • Following World War II, the United States experienced an era of unprecedented prosperity and economic growth. Which factor contr
    7·2 answers
  • Dothan Inc.'s stock has a 25% chance of producing a 30% return, a 50% chance of producing a 12% return, and a 25% chance of prod
    14·1 answer
  • Haverty's Furniture bought a deluxe mattress for $530. The initial price on the mattress was $1100, but it was sold for $950. Wh
    14·1 answer
  • Which consequences can victims of identity theft face? Check all that apply.
    9·2 answers
  • Last year Vaughn Corp. had sales of $315,000 and a net income of $17,832, and its year-end assets were $210,000. The firm's tota
    9·1 answer
  • The lowest point in a business cycle, which follows a period of economic<br> decline, is called a(n)
    10·1 answer
  • At the beginning of the period, the Fabricating Department budgeted direct labor of $99,000 and equipment depreciation of $44,00
    14·1 answer
  • Which function of money describes its ability to help people compare what
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!