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Orlov [11]
3 years ago
14

If real GDP is $500 billion, full employment GDP is $300 billion, and the marginal propensity to consume is 0.9, then Congress s

hould:
1. increase taxes by exactly $20 billion.
2. increase taxes by $50 billion.
3. increase taxes by $22.22 billion.
4. decrease spending by $30 billion.
5. decrease spending by $50 billion.
Business
1 answer:
melomori [17]3 years ago
3 0

Answer:

tax increased = $22.22 billion

so correct option is 3. increase taxes by $22.22 billion.

Explanation:

given data

real GDP = $500 billion

employment GDP = $300 billion

marginal propensity = 0.9

solution

we know here that Inflationary gap will be

Inflationary gap = Real GDP - Full-employment GDP

Inflationary gap = $(500 - 300) billion

Inflationary gap = $200 billion

and tax Multiplier is

Tax Multiplier  = \frac{- marginal propensity}{1 - 0.9}

Tax Multiplier  = -9

here negative sign means that decrease real GDP by $9

so tax should be increased by $1

so we can say that decrease real GDP by $200 billion

and  tax should be increased = \frac{200 billion}{9}  

tax increased = $22.22 billion

so correct option is 3. increase taxes by $22.22 billion.

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GaryK [48]

Answer:

No

Explanation:

Katie's opportunity cost is too high. She is giving up more money at the dental practice than the $100 she would be saving by making the pastries from hand instead of ordering them from the caterer. The group should continue to order the pastries and split the cost among all the friends so each person's share is lower.

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3 years ago
On November 1, 2015, Lendem, Inc. loaned an employee $100,000 at 6% with both the interest and principal due in one year. The ad
Finger [1]

Answer:

A. debit to Interest Receivable of $1,000

Explanation:

The journal entry is given below;

Interest Receivables ($100,000 × 6% × 2 ÷ 12) $1,000.00  

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(being the interest earned but not received is recorded)

Here the interest receivable is debited as it increased the assets and credited the interest revenue as it also increased the revenue

7 0
3 years ago
Consumers in which stage of the household life cycle are over 64 years of age; are either fully or partially retired; are health
scoray [572]

Options: A. Single 1

B. Single II

C. Empty nest I

D. Empty nest II

E. Delayed empty nest

Answer: D. Empty nest II

Explanation: Empty nest syndrome is a term used to describe the feeling of grief and loneliness which

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Empty nest syndrome is usually associated with Full time mother's because they are more connected to their children due to the constant Relationship between them.

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6 0
3 years ago
Taylor Equipment Repair Service is owned by Jason Taylor. Cash $ 33,700 Supplies 5,780 Accounts Receivable 12,600 Equipment 77,4
kumpel [21]

Answer:

Owners Equity/Net Worth is $106,080

<u>Explanation:</u>

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Cash                             $33,700

Supplies                       $5,780

Accounts Receivable  $12,600

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Total Assets                 <u>$129,480</u>

<u>Liabilities</u>

Accounts Payable                 $23,400

<em>Owners Equity (Balance)    </em><u><em>$106,080</em></u>

Total Liabilities and Equity    <u>$129,480</u>

4 0
3 years ago
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Answer:

1. Describes the image the organization wants to project

Statement: Mission Statement

2. Inspires enthusiasm and encourages commitment

Statement: Vision Statement

3. Illuminates the organization’s attitude toward its employees

Statement: Mission Statement

4. Is intended to guide all of the actions in the organization

Statement: Values Statement

5. Is easily understood and well-articulated

Statement: Vision Statement

6. Outlines the organization’s customer base

Statement: Mission Statement

7. Expresses the company’s worldview

Statement: Values Statement

8. Is appropriate for the times and for the organization

Statement: Vision Statement

9. Limits itself to a small number that employees can recall when making decisions

Statement: Values Statement

10. Articulates the geographical locations where the company competes

Statement: Mission Statement

11. Unchanging; As applicable in 100 years as it is today

Statement: Values Statement

12. Reflects high ideals

Statement: Vision Statement  

8 0
3 years ago
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