The expenditure method is the most widely used approach for estimating GDP, which is a measure of the economy's output produced within a country's borders irrespective of who owns the means to production. The GDP under this method is calculated by summing up all of the expenditures made on final goods and services.
Answer:
1-a.
in order to determine the present value of option a we can look for the PVIFA (annuity factor) for 24% / 12 = 2% monthly rate and 25 payments.
PVIFA = 19.523
Present value of the 25 payments = $540 x 19.523 = $10,542.42
+
Present value of final payment = $10,000 / (1 + 24%)²⁵/¹² = $6,388.10
PV = $16,930.52
Present value of option b = $16,638
1-b.
- b. option b (lower present value)
Answer:
The solution to this question can be defined as follows:
Explanation:
In point a:
When consumer interest decreases, => consumers begin and save less and more, => MPC decreases; => the "IS" curve becomes flatter; => "IS" turns inside. Currently, 'AD' shows together all the goods and financial sector, => as the 'IS' curve adjusts inside the industry, => the 'AD' would also change to the left.
In point b:
Take into account the SR models of "IS-LM" and "AD-AS."
Therefore there is the case of a full job only at the beginning; => its optimum between "IS1" and "LM" in the "IS-LM" model; as well as the main equilibrium among "AD1" and "AS" in the "AD-AS" model "E1'," => the original equilibrium among "Y=Yf," "r=r1" and "P=P1." That now the consumer is reducing the confidence, => the 'IS' curve becomes shifting IMEI 'IS2,' => provided the 'LM' curve, that new balance is 'E2.' That's why the price in the SR is calculated, the AS will change =>, however, the AD also will shift the "AD2" side and "E2'" will become the equilibrium point in the "AD-AS" system, "r=r2 <r1" and "P=P1" throughout the new "Y=Y2 <Yf" balance.
Please find the graph file in the attachment.
During this competitive analysis, the manager should look at All the factors such as :
- companies that produce other brand of pork-based sausages
- Morningstar, a company that has a complete line of soy-based products
- companies that produce other forms of breakfast meats like bacon
- Individuals who make their own sausage
hope this helps