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Anna007 [38]
3 years ago
13

You are given the following information about aggregate demand at the existing price level for an economy: (1) consumption = $50

0 billion, (2) investment = $50 billion, (3) government purchases = $100 billion, and (4) net exports = $20 billion. If the full-employment level of GDP for this economy is $620 billion, then what combination of actions would be most consistent with closing the GDP-gap here?
Business
1 answer:
kolbaska11 [484]3 years ago
3 0

Answer: C. Decrease government spending and increase taxes

Explanation:

The current GDP of this economy is $670 billion and this figure is higher than the $620 billion that the economy should be at.

This means that the economy is in danger of overheating and needs to be adjusted.

To do this one can use option C.

By REDUCING Government Expenditure, government purchases will drop which will aid in reducing the GDP.

By also INCREASING Taxes, the amount of money left for people to consume after they pay their taxes is less so that REDUCES Consumption as well leading to a smaller GDP.

Doing this is known as a CONTRACTIONARY FISCAL POLICY.

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Which of the following falls outside of the classification of business expenditures that fall into the category of variable cost
yuradex [85]

The option that falls outside of the classification of business expenditures that fall into the category of variable costs is option C. costs of research and development. Read below about costs of research and development.

<h3>What is a costs of research and development?</h3>

These are costs taken to develop new products or processes that may or may not result in commercially viable items. The general rule is that research and development costs are to be expensed immediately when the costs are incurred.

Therefore, the correct answer is as given above.

learn more about costs of research and development: brainly.com/question/18685415

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4 0
1 year ago
_____ leaders are agents of change because they develop an appealing vision of the desired future state, communicate that vision
GrogVix [38]

Answer:

The correct answer here is B) Transformational leader.

Explanation:

Transformational leadership style is a type of leadership, where a leader would work with its team so that a leader can identify changes that are needed, leader would create a vision to guide change through the inspiration and executes that change in tandem with committed team members. Transformational leader also helps in enhancing the motivation, job performance and morale of its team and followers through various mechanism like being a role model to others, connecting with teams sense of identity.

8 0
3 years ago
Target costing sets costs based on the price that customers are willing to pay.
Alisiya [41]

It is False that Target costing sets costs based on the price that customers are willing to pay.

Because target costing estimates product cost by subtracting a desired profit margin from a competitive market price. As the target cost makes reference to the competitive market, it is fundamentally customer-focused and an important concept for new product development.

Costing is any system for assigning costs to an element of a business.

Competitive is most commonly used to describe a person who has a strong desire to compete and win.

Development is the act, process, or result of developing the development of new ideas an interesting development in the case.

To know more about the Costing here

brainly.com/question/24130824

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6 0
1 year ago
Aggregate demand is everything produced while simple demand is one good. which statement reflects simple demand?
liq [111]
B because it’s most average
8 0
2 years ago
What are the objectives of a social enterprise?
Alexxx [7]
A social enterprise is a business that aims to achieve a particular public or community mission (social, environmental, cultural or economic), and reinvests the majority of its profits into achieving that mission.
8 0
3 years ago
Read 2 more answers
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