1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Galina-37 [17]
4 years ago
6

If the economy is at equilibrium above potential output:

Business
1 answer:
babunello [35]4 years ago
6 0

Answer:

B) There is an inflationary gap, and contractionary fiscal policy is appropriate.

Explanation:

One of the macroeconomic cases is inflationary gap. It means that the difference between the current level of real gross domestic product (GDP) and the predicted or forecasted GDP that would be experienced and achieved if an economy is at full employment. It could be claimed that when the demand for goods and services gets over the production in the factors such as: higher levels of overall employment, increased trade activities or increased government expenditure.

In order to overcome this gap, the contractionary fiscal policy must be considered. The mechanism of that policy is to increase the taxes decrease the government expenses due to inflationary pressures. This policy consequently will affect the level of consumption and private investment, respectively, these also will decrease the real GDP.

Other concept of macroeconomics is recessionary gap. In comparison to inflationary gap, this concept indicates the economy operating at lower level than its full equilibrium level, in turn, the level of real GDP is also less than full equilibrium level. We used to see this situation when the economy was intending to recess.

In order to overcome this gap, the expansionary fiscal policy will work well. Because of decreasing taxes and increasing government expenditures, the recessionary gap can be fought anymore. Since the taxes decreases, the business will revive and the confidence to the investment will increase, as a result the GDP will rise. Moreover, the growing government expenditures will stimulate the GDP to accrue.

To summarize, according to the question we need the gap in which the economy is above of potential, this means inflationary gap. Following this finding, the contractionary fiscal policy will be solution.

You might be interested in
The recent global boom in the market price for scrap steel and aluminum leads to a sudden rise in the theft of everyday metal ob
Kipish [7]

Answer:

C

Explanation:

The recent global boom in the market price for scrap steel and aluminum<em><u> has led to a sudden rise in the theft of everyday metal objects like manhole covers, guard rails, and empty beer kegs. </u></em>

<em><u /></em>

8 0
3 years ago
What are the rules of a male and a female at home?​
ad-work [718]

Answer:

male is the protector female is a light for their house male is the foundation of there house they provide everything thats a male work female helping dou house hold things comport there husband understand.

4 0
3 years ago
Read 2 more answers
Anderson Corporation has purchased a group of assets for $16,600.
Sati [7]

Answer:

C.$ 8 comma 798$8,798

Explanation:

Given,

Purchase value = $16,600

Considering the relative values

Relative value of land = $6,500

Total relative value = 6500 + 2400 + 3400

                                = $12,300

Using the relative value to allocate the purchased value of the land

Purchased cost of land = (6500/12300) × 16,600

                                       = 0.53 × 16,600

                                      = $8,798

The amount that would be debited to the Land is $8,798 Option C

4 0
3 years ago
Give an example of two economic goals conflicting with each other
Alexxandr [17]
Any country around the world has certain targets for becoming an ideal and economically stable nation. Economic goals of full employment, stability, economic growth, efficiency, and equity are widely considered to e beneficial and worth pursuing for a country to achieve economic stability. Full employment and price stability are goals that conflict with each other. Full employment is an economic situation in which all the available labor resource is being used in the most efficient way possible while price stability implies avoiding both prolonged inflation and deflation.
4 0
3 years ago
Read 2 more answers
B-to-B companies use digital marketing to position their businesses as thought leaders and generate sales leads, primarily in th
PolarNik [594]

Answer:

The answer options to this question would be the following:

a) communication and orders

b) promotional mix

c) banners

d) content marketing

The correct answer is d) content marketing.

Explanation:

Content marketing is a marketing technique that is based on the generation of different content around a brand. The purpose of content marketing is to attract and retain those potential customers through relevant and valuable content.

Thanks to this marketing technique you can work the entire cycle of the user's purchase. In other words, the process a person goes through from the moment they realize they have a need until they decide to buy a product / service to solve it.

6 0
3 years ago
Other questions:
  • Three Bears Manufacturing produces an autominus−quartz watch movement called OM362. Three Bears expects to sell 19,000 units of
    5·1 answer
  • Political campaigns that operate at a local level and use face-to-face communication to generate interest and momentum by citize
    7·1 answer
  • "Falling oil prices have caused a sharp decrease in the supply of oil." Speaking precisely, and using terms as they are defined
    10·1 answer
  • Suppose you buy clothes at Mimi's Clothing Shop. Your spending is Mimi's _____.
    5·1 answer
  • Suppose that you are the vice president of operations of a manufacturing firm that sells an industrial lubricant in a competitiv
    13·1 answer
  • All of the following are economic institutions EXCEPT
    5·1 answer
  • ZOOm you there lets get on.
    12·2 answers
  • In what type of market transaction does the issuing corporation receive cash proceeds?​​​​
    10·1 answer
  • Explain importance of office resources in points.​
    6·2 answers
  • In the early 2000s, easy credit made real estate the investment of choice in the United States. By the end of the decade, howeve
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!