Answer:
$100 billion
Explanation:
Real GDP is currently = $13.55 trillion
Potential real GDP = $14.0 trillion
Gap = $500 billion
Government purchases multiplier = 5.0
Tax multiplier = 4.0
To increase aggregate demand by $500 billion, the required increase in government expenditure is:
= (1 ÷ government purchases multiplier) × change in aggregate demand
= (1 ÷ 5) × $500
= $100 billion
Therefore, the government expenditure need to be increased by $100 billion.
Answer and Explanation:
The preparation of the operating activities section is presented below:
Cash flows from operating activities
Net income $374,000
Adjustments made
Add: Depreciation $44,000
add: Amortisation expanses $7,200
Add: Accounts receivable decrease $17,100
Add: Inventory decrease $42,000
Less: Prepaid expense increase -$4,700
Less: Accounts payable decrease -$8,200
Add: Wages payable increases $1,200
Less: Gain on sale of machinery -$6,000
Net cash provided by operating activities $466,600
For the economy as a whole, macroeconomic equilibrium if the total spending, or aggregate expenditure, equals total production, or GDP: Aggregate Expenditure = GDP.
Macroeconomic equilibrium happens when the quantity of real GDP demanded equals the amount of actual GDP provided at the point of intersection of the ad curve and the AS curve. If the amount of actual GDP provided exceeds the amount demanded, inventories pile up in order that corporations will reduce production and expenses.
Macroeconomic equilibrium is a situation within the economy in which the amount of combination called for equals the quantity of aggregate supply. If there are changes in both aggregate call for or mixture deliver, you can additionally see a trade-in rate, unemployment, and inflation.
The amount of output furnished may be extra than the mixture demand. charges will begin to fall to dispose of the surplus output. As fees fall, the amount of combination demand will increase and the economy returns to equilibrium.
Learn more about macroeconomic equilibrium here: brainly.com/question/1971734
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Answer:
THERE ARE SCARCITY EVEN IN AN AFFLUENT COUNTRY LIKE THE UNITED STATES BECAUSE WANTS ARE LIMITED BUT NEEDS ARE UNLIMITED. SOME PEOPLE ARE POOR WHILE OTHERS ARE WEALTHY
Increase in price leads to a decrease in supply.
