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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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Maritime Sail Makers manufactures sails for sailboats. The company has the capacity to produce 37 comma 000 sails per year and i
kirza4 [7]

Answer:

Increase in income= $550,000

Explanation:

Giving the following information:

Variable costs per​ unit:

Manufacturing $60

If a special pricing order is accepted for 5,500 sails at a sales price of $ 160 per​ unit

Because there is no change in the fixed costs and there are no variable selling and administrative costs, the effect on income will be equal to the change in total contribution margin.

Total contribution margin= number of units* (selling price - unitary variable cost

Total contribution margin change= 5,500* (160 - 60)= $550,000

Increase in income= $550,000

8 0
3 years ago
Currently Baldwin is paying a dividend of $1.10 (per share). If this dividend stayed the same, but the stock price rose by 10% w
Flauer [41]

Answer:

Dividend yield = 227.06%

Explanation:

Assuming the Closing stock market summary for Baldwin company is $44.05

Dividend yield = Dividend * 100 / (Price* (1 + growth rate) )

Dividend yield = 1.10 * 100 / (44.05 * (1+0.10) )

Dividend yield = 1.10 * 100 / (44.05 * 1.10)

Dividend yield = 110 / 48.455

Dividend yield = 2.2706

Dividend yield = 227.06%

4 0
3 years ago
Which of the following is true about corporate cultures?a. Corporate cultures are not influenced by the people comprising that o
vladimir1956 [14]

Answer:

Corporate cultures can hinder individuals in making the "right" decisions.-c.

6 0
3 years ago
Read 2 more answers
In your company's management development program, there was a heated discussion between
GREYUIT [131]

Answer:

The most sensible position is to understand that theory, while not practical in itself, can be immensely helpful when dealing with pratical matters.

This is because theory gives you a sound conceptual foundation that can be used to analyze the practical context, and approach it with the best possible practical solutions.

Without theory, managers have to rely too much on intuition, which can often fail.

3 0
3 years ago
Which of the following would decrease aggregate demand? a) an improvement in consumer confidence b) a decrease in the foreign ex
Alex_Xolod [135]

Answer:  Option B

                                 

Explanation: In simple words, aggregate demand refers to the total amount of goods and services that the consumers are willing to consume at a specific price and in a specified time.

A decrease in dollar value will result in less purchasing power for imports. This will result in less supply which will ultimately increase the price of the imported quantity, thus, resulting in decrease in aggregate demand.

8 0
3 years ago
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