Answer:
If MPC is 0.8, Change in GDP = $500 million
If MPC is 0.95, Change in GDP = $2,000 million
Explanation:
<em>Expenditure Multiplier is the amount by which the real GDP will change if autonomous expenditure changes by a given amount.</em>
It is calculated as follows: 1/(1-MPC).
MPC is the portion of additional income that is spent. If the MPC is 0.8, then the expenditure multiplier will be = 1/(1-0.8) = 5
Using the first scenario with an increase in government spending by $100million, the resulting change in GDP would be
Change in GDP = change in autonomous expenditure × Multiplier
= 100 × 5 = $500 million
<em>Scenario 2, MPC of 0.95</em>
Expenditure Multiplier = 1/(1-0.95) = 20
Change in GDP= 100 × 20 = $2000 million
A typical guest's check would be for $23.18.
How Do Sales Operate?
Any transaction in which two or more parties exchange money in exchange for the buyer getting tangible or intangible goods, services, or assets is referred to as a sale. On occasion, a seller may receive additional assets. A sale is another term used in the financial markets to describe an agreement between a buyer and a seller over the price of a security.
No of the circumstance, a sale is in essence a contract between the buyer and the seller of the particular good or service in question.
In a sale, two or more parties typically include a buyer and a seller who exchange goods or services for money or other assets.
to know more about sales
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Answer:
The answer is <u>$3 500 000</u>
Explanation:
The above transactions affect the Consumption component in GDP.
Citrus Grower's contribution to GDP = $3 million + $500,000= <u>$3 500 000</u>
$1 million worth of oranges grown was not included because the amount was the estimated value of oranges and not actual value of oranges consumed.
Answer:
The correct answer is option e.
Explanation:
The supply in the given example is assumed to be unchanged. Supply being constant an increase in demand will cause the demand curve to shift to the right. This rightward shift in the demand curve will intersect the supply curve at a higher point. This will cause an increase in the price as well as quantity of output in the market.
So, option e is the correct answer.
Because it costs more than, u might as well say, a copy
