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
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.

You might be interested in
Pat Jones is a college student who is planning some networking opportunities for the current l semester. Pat wanted to look
DaniilM [7]

Answer:

1. I feel like Pat's new strategy isn't ethical. Pat doesn't pay for the suits; he just buys them and then returns them. Pat benefits, but the store he gets the suits from doesn't. In fact, they are harmed from this transaction because they are unable to have the suit for others to buy while Pat has it. There could be consequences with this strategy. For example, the suit might be damaged, and Pat won't be able to return it. Another problem is that others might find out about Pat's strategy, and they might view them as unprofessional. This is a problem for Pat since the reason Pat wore those suits was to look professional.

2. The stores are harmed from this transaction. They are unable to sell the suits to other buyers. The stores lose potential customers, so the stores lose potential money.

3. The companies should record that Pat had bought the suit only to return it the next day, so that they can act accordingly when Pat or someone else comes back to "buy" a suit.

Explanation:

7 0
2 years ago
If a homeowner wants to sell his property to an adult child for $1, may a sales agent be involved in that transaction?
Umnica [9.8K]

Answer:

Of course a sales agent can be involved, although they will probably charge a fixed amount and not a sales percentage. Many people probably need the help of a sales agent to fill out legal forms, including contracts, etc. Not everyone has the knowledge to prepare them or simply fill them out, and a sales agent can be helpful.

7 0
2 years ago
The Federal Reserve mandates banks to deposit a certain percentage of their ______ as required reserves at their regional Federa
nikitadnepr [17]

Answer:

deposits

Explanation:

4 0
3 years ago
WWhich of the following methods provides the easiest way to quickly share files and folders with other users on the network just
BlackZzzverrR [31]

Answer:

C. Public folders  

Explanation:

A public folder is a folder that is a way that information and files can be shared quickly and easily with multiple users and groups.

In using public folder,  the user simply has to move or copy a file into a public folder to make it accessible.  

It is designed for shared access and to provide an easy and effective way of  sharing information with other people especially in a workgroup.

6 0
3 years ago
Hodgkiss Mfg., Inc., is currently operating at only 92 percent of fixed asset capacity. Current sales are $780,000. Fixed assets
EleoNora [17]

Answer:

$17,835.90

Explanation:

Currently Hodgkiss is operating at 92% of its fixed asset capacity, so they have an spare 8% to grow without adding any more fixed assets: ($780,000 / 92) x 100 = $847,826.09.

So they need to add fix assets in to increase its production by $32,173.91 (= $880,000 - $847,826.09).

Every dollar spent in fixed assets generates at full capacity $1.8039 in production output (= $847,826 / $470,000).

If they want to increase production by $32,174, they will need to spend $17,835.90 in fixed assets.

4 0
3 years ago
Other questions:
  • Alpha Co. has cost of goods sold of $77 million, net income of $9.6 million, sales of $120 million, and total assets of $150 mil
    5·1 answer
  • Consider the market for labor depicted by the demand and supply curves that follow. Use the calculator to help you answer the fo
    10·1 answer
  • Which of these fees is paid at the closing when a home purchase is finalized?
    13·1 answer
  • A​ _______ refers to a collection of companies and processes involved in moving a product from the suppliers of raw materials an
    7·2 answers
  • Supply chain managers outsource logistics to meet three​ goals: A. drive down inventory​ investment, lower delivery​ costs, and
    6·1 answer
  • Ryan is going to rent a truck for one day. There are two companies he can choose from, and they have the following prices. Compa
    13·1 answer
  • Don's boss asked him to prepare a report that shows the activities in the warehouse from the moment raw steel enters the plant u
    8·1 answer
  • Bub here it is <br> :)<br> you made my simp list bigger btwefrgtfhjk,jmhgfvdsadfrgtyhjn bv
    9·2 answers
  • A company paid its annual dividends of $5.39 per share last week. The company expects to grow its dividends at the rate of 5.0 p
    6·1 answer
  • The opportunity cost of receiving a 93 on the economics exam is ______ points on the statistics exam.
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!