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andre [41]
3 years ago
15

Suppose the economy is operating at an output of $4,000 billion. Assume furthermore that potential output is $5,000 billion and

the marginal propensity to consume is 0.75. _____ would close this recessionary gap.
Business
1 answer:
motikmotik3 years ago
7 0

Answer:

The correct answer is $250 billion.

Explanation:

An economy is operating at an output level of $4,000 billion.  

The potential output level is $5,000 billion.  

The marginal propensity to consume is 0.75.  

The recessionary gap is

= $5,000 billion - $4,000 billion

= $1,000 billion

ΔY = \frac{1}{1-MPC}\times \Delta G

$1,000 = \frac{1}{1-0.75}\times \Delta G

$1,000 = \frac{1}{0.25}\times \Delta G

$1,000 = 4 \times \Delta G

ΔG = \frac{1,000}{4}

The change in income required to correct this recessionary gap is $250 billion.

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Question 1 (2 points)
inn [45]

Answer:

True

Explanation:

The principal purpose of building a business is to make profits.  A business must provide solutions to particular needs and wants in the community to attract customers. Different entrepreneurs will offer alternative or similar solutions to a specific situation.

Anyone starting a business will target a particular set of customers. He or she must be ready to complete for those customers with other like-minded entrepreneurs. Competition is good in business as it makes entrepreneurs innovate on the best ways to serve their customers. It also gives customers alternatives.

8 0
3 years ago
The character of a company's corporate culture is a product of:A. the shared values and core business principles and beliefs tha
natta225 [31]

Answer: Option E

               

Explanation: Corporate culture refers to the values and beliefs of an organisation that originates from its several different factors like strategy, customers and investors etc. The corporate culture of an organisation affects the attitude and behavior of all its members.

It sometimes works as a guide when the organisation faces an ethical dilemma. In a healthy corporate culture every employee in the organisation is treated with respect regardless of his or her status.

Thus, from the above we can conclude that the correct option is E.

5 0
3 years ago
What city on the kansas river is the capital of kansas
almond37 [142]

Answer:

Topeka

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6 0
2 years ago
A​ check-processing center uses exponential smoothing to forecast the number of incoming checks each month. The number of checks
Liula [17]

Answer:

a. 41.6 million

b. 42.28 million

Explanation:

A) GIven

forecast in june = Sjune = 42 million

Checks recived in june = Xjune = 40 million

Smoothing constant = a = 0.2

So for july

Sjuly = a*Xjune + (1-a)*Sjune

=0.2*40 + (1-0.2)*42 million

=8+33.6 = 41.6 million

B) forecast in july = Sjuly = 41.6 million

Checks recived in july = Xjuly = 45 million

Smoothing constant = a = 0.2

So for August

Saugust = a*Xjuly + (1-a)*Sjuly

=0.2*45 + (1-0.2)*41.6 million

=9+33.28 = 42.28 million

<em>Note: This uses an exponential smoothing to forecast the results, but from the number of checks recived we see that it increases linearly. So we need a linear forecasting method .</em>

5 0
3 years ago
Which of the following is NOT a condition for a firm to engage in price discrimination? Multiple Choice The consumers are sincer
Radda [10]

Answer:

The correct answer is The consumers are sincere in revealing their true natures.

Explanation:

This is not a condition because the company does not take into account factors of this type to determine price changes, to consider the setting of new prices for products. In order to determine these changes, you must establish real data on the behavior of demand and determine if the goods produced have the characteristic of being storable to be traded over a longer period of time.

6 0
3 years ago
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