Answer: reduced by $80 billion
Explanation:
An expansionary gap is when the actual output is more than the potential output. From the question, we are told that an economy is operating with output $400 billion above its natural level, and fiscal policymakers want to close this expansionary gap and that the central bank agrees to adjust the money supply to hold the interest rate constant, so there is no crowding out.
We are also given the marginal propensity to consume is 4/5, and told that the price level is completely fixed in the short run.
To close the expansionary gap, the government would need to reduce its spending. To solve this, we have to calculate the multiplier. This will be:
Multiplier = 1/(1 - MPC)
= 1/(1 - 4/5)
= 1/1-0.8
= 1/0.2
= 5
Therefore, the government expenditure or spending will be reduced by:
= $400 billion/5
=$80 billion
This one would be IRS.
For example, if<span> you end up paying for personal property taxes to your local government, the IRS would allow you to claim a deduction for it on your federal tax return~</span>
Answer:
Total after-tax cash flow= $6000
Explanation:
Giving the following information:
Equipment value= $30,000 in December 20x1.
Income= $10,000 p
Cost= $2,000 per year.
Depreciation= $3,000.
t=0,40
Cash flow has the following structure:
Income (+)
Cost (-)
Depreciation (-)
=EBIT
TAX (-)
Depreciation (+)
Total
Income= 10000
Costs= -2000
Depreciation= -3000
EBIT= 5000
Tax= -2000
Depreciation= 3000
Total= 6000
If an economy is experiencing a cyclical downturn and output does not return to the secular growth trend, the economy is said to be experiencing structural stagnation.
<h3>What is structural stagnation?</h3>
This stagnation is attached to economies that are matured and it occurs when growth rate do the economy decreases rather than increasing.
The population may be decreasing and yet the country is experiencing stagnation.
Therefore, If an economy is experiencing a cyclical downturn and output does not return to the secular growth trend, the economy is said to be experiencing structural stagnation.
Learn more on stagnation below,
brainly.com/question/1247282
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If wheat farmers know that the demand for wheat is inelastic, and they want to increase their total revenue then they should increase the price of wheat to increase total revenue.
Given that the demand for wheat is inelastic and the farmers want to increase their total revenue.
We are required to find how the farmers increase their total revenue if the demand of wheat is inelastic.
Inelastic demand means that the demand is likely not to be change by a change in the price of commodity.
If the demand is not likely to change by the change in the price then the farmers can increase their total revenue by increasing the price because the total revenue is the product of price and quantity.
Hence if wheat farmers know that the demand for wheat is inelastic, and they want to increase their total revenue then they should increase the price of wheat to increase total revenue.
Learn more about inelasticity at brainly.com/question/26850555
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