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horrorfan [7]
3 years ago
8

Consider a small country that is closed to trade, so its net exports are equal to zero. The following equations describe the eco

nomy of this country in billions of dollars, where C is consumption, DI is disposable income, I is investment, and G is government purchases: C = 100 + 0.75 times DI G = 50 I = 80 Assume that this economy initially has a fixed tax and that net taxes (taxes minus transfer payments) are $40 billion. Disposable income is then (gamma - 40), where gamma is real GDP. Aggregate output demanded is ___________. Suppose the government decides to increase spending by $10 billion without raising taxes. Because the expenditure multiplier is ________, this will increase the economy's aggregate output demanded by __________. Now suppose that the government switches to an income tax, which is a type of variable tax, of 5%. Because consumers retain only 95% of each additional dollar of income, disposable income is now 0.95 times gamma. In this case, the economy's aggregate output demanded is ______________. Given an income tax of 5%, the expenditure multiplier is approximately ____________. Therefore, if the government decides to increase spending by $10 billion without raising tax rates, this would increase the economy's aggregate output demanded by approximately _______________. A $10 billion increase in government purchases will have a larger effect on output under a _____________.
Business
1 answer:
PtichkaEL [24]3 years ago
5 0

Answer:

this is government alargar effect

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Refrigerant ____ is to reprocess refrigerant to new product specifications as set by Environmental Protection Agency (E.P.A.).
Kobotan [32]

Answer:

Reclaiming

Explanation:

From the question we were told tha refrigerant "Reclaiming" is to reprocess refrigerant to new product specifications as set by Environmental Protection Agency (E.P.A.).

Reclaiming is the process of reforming, or to turn wastes refuse through industrial process or natural process into a useful products or substance.its a means in which usable material is been generated from. by products which is achieved through following the rules set by

Environmental Protection Agency (E.P.A.). for safety of all.

7 0
3 years ago
Which of the following is not a concept related to explaining abnormal excess stock returns?A. January effect B. neglected-firm
Anastaziya [24]

The preferred stock effect is not a notion that can be used to explain abnormally high excess stock returns.

<h3>What is the preferred stock?</h3>

The term "stock" refers to a company's ownership or equity. Common stock and preferred stock are the two forms of equity. Preferred investors are entitled to more dividends or asset distributions than common stockholders. The specifics of each preferred stock vary depending on the issuance.

When it comes to dividends, preferred stockholders have a preference over ordinary stockholders, which typically yield more than common shares and might be paid monthly or quarterly. These dividends can be fixed or determined by reference to a benchmark interest rate, such as the London Interbank Offered Rate.

To learn more about stock, click

brainly.com/question/28235296

7 0
1 year ago
On January 1, 2018,Gillock Climbing Academy instituted a defined benefit pension plan for its employees. The annual service cost
Ivan

Answer:

Find the answer below in explanation

Explanation:

Gillock Climbing Academy Pension Expense for the year 2019 will be recorded as

Service cost ............................................. 600,000.00

Interest (600000 × 10%)................................60,000.00

plan assets (40000 from 2018 + 32000 interest + 400000 made in current year)............... 832000

Expected return Interest on plan asset (832000*8%) ........................................ 66,560.00

Pension Expense for the year ended December 31, 2019 = 600000 -  (66,560.00 - 60000)

= 600,000−6,560

= $593,440.00

3 0
3 years ago
Suppose that a certain fortunate person has a net worth of $76.0 billion ($7.60×10107.60×1010). If his stock has a good year and
iogann1982 [59]

Answer:

new net worth = 79.2 billion

Explanation:

given data

net worth = $76.0 billion

gains = $3.20 billion

to get here

new net worth

solution

we get here new net worth that is express as

new net worth = net worth + gains     .............................1

put here value and we will get here

new net worth = $76.0 billion + $3.20 billion

new net worth = 79.2 billion

4 0
3 years ago
. A business cycle is the a. period of time in which expansion and contraction of economic activity are equal. b. period of time
Mama L [17]

Answer:

c. recurring growth and decline in real GDP.

Explanation:

A business cycle is also called a economic cycle or trade cycle, and it is the fluctuation of GDP up and down along its long term growth trend. A business cycle consists of a period of boom and contraction in sequence.

It shows rise and fall in production of goods and services within a country including output from businesses, individuals, households, nonprofits, and government.

There are 4 stages that make up the business cycle that is peak, recession , trough, and expansion.

3 0
3 years ago
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