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stich3 [128]
3 years ago
13

Item 8Item 8 In a certain year, the aggregate amount demanded at the existing price level consists of $100 billion of consumptio

n, $40 billion of investment, $10 billion of net exports, and $20 billion of government purchases. Full-employment GDP is $120 billion. To obtain price-level stability under these conditions, the government should
Business
1 answer:
erma4kov [3.2K]3 years ago
4 0

Answer:

The government can reduce GDP by either:

  1. lowering government expenses
  2. increasing taxes which will lower consumption
  3. or a combination of both

Explanation:

currently total GDP = $100 billion (C) + $40 billion (I) + $20 billion (G) + $10 billion (X) = $170 billion

since the full employment GDP = $120 billion, the government must lower the GDP by $50 billion before inflation starts to rise.

The government can reduce GDP by either:

  1. lowering government expenses
  2. increasing taxes which will lower consumption
  3. or a combination of both

We aren't given any more information regarding MPC or MPS, so it is not possible to calculate by how much should government spending be lowered or taxes increased.

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If the present value of $280 paid one year from now is $250 what is the one-year discount factor?
OleMash [197]

Answer:

12%

Explanation:

The discount rate  will be  PV/FV -1

i.e., i =  (Fv/pv )-1

i=  (280/250) - 1

i = 1.12-1

i=12%

7 0
2 years ago
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Who would you vote for if you could? Explain Why connecting to issues facing your community.
andre [41]

Answer:

Explanation:

vote for what

4 0
2 years ago
\Select the three generic business strategies Porter identified for entering a new market. Multiple select question. Focused lea
Dahasolnce [82]

broad differentiation, focused strategy, and broad cost leadership are the three Generic business strategies Porter identified for entering a new market.

<h3>What are Generic business strategies?</h3>

A Generic business-level strategy is a broad approach to a company's positioning within a sector. Executives can concentrate on the essential components of business-level plans by focusing on generic strategies. The most widely used set of generic strategies is derived from the work of Harvard Business School Professor Michael Porter.

The foundation of any business-level strategy, in Porter's opinion, is two competitive dimensions. The first factor is the source of competitive advantage for a company. This factor examines whether a company seeks to outperform competitors by cutting costs or by providing a niche product.

The range of a company's operations is the second factor. This aspect pertains to whether a company tries to target clients generally or whether it only aims to draw in a certain customer demographic.

These choices lead to the following four general business-level strategies:

  • Broad cost leadership,
  • Broad differentiation,
  • Focused cost leadership,
  • Focused differentiation.

To know more about Generic business strategies refer to:  brainly.com/question/27403764

#SPJ4

8 0
2 years ago
Read 2 more answers
The general message of the full disclosure principle is that: a. information is symmetric. b. information is costly to fake. c.
erica [24]

Based on financial and accounting principles, the general message of the full disclosure principle is that "<u>the lack of evidence that something resides in a favored category will often suggest that it belongs to a less favored one."</u>

This is because the full disclosure principle state that all information should be documented in a company or individual financial statements which are believed to affect a reader's knowledge of that specific financial statement.

This ensures that every party that needs to access the financial statements under concern should fully understand them without missing any form of information.

Otherwise, any missing link or information will be ruled in favor of the less favored party in a legal situation.

Hence, in this case, it is concluded that the correct answer is option D.

Learn more here: brainly.com/question/24280368

6 0
2 years ago
Which of the following is likely to cause a decrease in the equilibrium U.S. interest rate, other things being equal? a. an incr
garik1379 [7]

Answer:

The correct answer is d. pessimistic economic projections that cause businesses to reduce expansion plans.

Explanation:

Economic projections are quantitative studies which seek to describe how the growth of an economy will be in a certain period of time towards the future. These are based on existing economic models, in addition to historical reports, to identify patterns in which they know where the economy will go.

This information is of great interest to different sectors, for example, investors will always be interested in knowing which sectors of the industry will grow in the future, to invest in shares of leading companies in that area; people are always eager to know how the economy will be, in order to decide if it is good time to spend or save; Well, governments can do these studies to find out if it is necessary to implement any program to prevent economic problems.

5 0
3 years ago
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