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]
4 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]4 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
Suppose that you open your own business and earn an accounting profit of​ $35,000 per year. When you started your​ business, you
Aleonysh [2.5K]

Answer:

B. minus​$2,000.

Explanation:

The computation of the economic profit is shown below:

As we know that

Economic profit = Total revenue - Explicit costs - Implicit costs

= $35,000 - $30,000 - $7,000

= -$2,000

The implicit cost is come from

= $70,000 ×10%

= $7,000

We simply applied the above formula so that the economic profit could come

7 0
3 years ago
Jose is an up and coming entrepreneur working on solidifying his business plans. After meeting with his mentor, he learns that h
dybincka [34]

Answer:

This is important for Jose because as a business owner you want to know what type of business you are running

Explanation:

hope this helps :D

4 0
2 years ago
Mycenaean Greece became more powerful after a. ​creating trade networks with Egypt b. ​war with Persia. c. ​destruction of Crete
zalisa [80]

Mycenaean Greeks became more powerful after destruction of Crete.

Option c

<u>Explanation:</u>

The Civilization of Mycenaean in the ancient Greece is considered to be the last phase of the bronze age with the span of 1600–1100 BC. The civilization was named after the most prominent area called the Mycenae in Argolid.

The first wave of destruction in their mainland occurred in 1250 BC due to few unidentified reasons. The second and final destruction happened on 1190 BC which marked the end of the whole civilization.

They are known to be the first human to speak the Greek language. They were majorly influenced by the people of earlier Minoan civilization which was situated on Crete island.

7 0
4 years ago
Bank A has a higher ROA than Bank B. Both banks have similar interest income to asset ratios and noninterest income to asset rat
iren2701 [21]

Answer:

A) I only

Explanation:

We can conclude that bank A will be more profitable than bank B since ROA is a measurement of profitability, and if the banks are operating in a similar manner (both interest income to asset ratios and noninterest income to asset ratios are similar), then the bank with the highest ROA is the most profitable one.

8 0
3 years ago
On December 1, Miser Corporation exchanged 2,000 shares of its $25 par value common stock held in treasury for a parcel of land
Allushta [10]

Answer:

Capitalized value = $188000

Explanation:

Land should be capitalized by fair market value of share exchanged less any recovery of scrap as land will be developed for future plant.

Fair value of shares = $50*4000 = $200000

Less: value of scrap = $12000

Capitalized value = $188000

8 0
4 years ago
Other questions:
  • When the economy is doing badly, which of the following workers is NOT likely to have fewer customers or patients who want their
    8·2 answers
  • The Career Cycle gives "10 tips on content and structure" of your resume. As a student, you may not have specific technical skil
    7·1 answer
  • When demand is unit​ elastic, a change in price causes total revenue to stay the same because A. total revenue never changes wit
    14·1 answer
  • Of the following factors affect economic growth? a. land c. labor b. capital d. all of the above
    7·1 answer
  • Professor Green teaches environmental economics at the local university. Students learn that the professor has also written book
    11·1 answer
  • Which of the following best describes a liability? A. Liabilities are future economic benefits to which a company is entitled. B
    7·1 answer
  • A(n) _______________ leader is one who is focused on developing a long term vision for the company and who uses a charismatic pe
    6·1 answer
  • The fixed costs of WeBuy&amp;Sell.com, an e-commerce website, make up about 90 percent of the total costs incurred by the compan
    10·1 answer
  • Restrictions on the quantity of goods that can enter a country
    5·1 answer
  • The equilibrium wage for low-skilled workers is a government-imposed minimum wage, the ____ will be the resulting surplus of low
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!