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stich3 [128]
3 years ago
5

If the marginal propensity to consume (MPC) is 0.75, and if the goal is to increase real GDP by $400 million, then by how much w

ould government spending have to change to generate this increase in real GDP? Group of answer choices
Business
1 answer:
mr Goodwill [35]3 years ago
6 0

Answer:

Government spending would have to change by <u>$1.6 billion</u>

Explanation:

The marginal propensity to consume (MPC) refers to the proportion of an increase in aggregate income that is spent on consumption of commodities by a consumer.

Since from the question, we have:

MPC = Marginal propensity to consume = 0.75

The MPC can therefore be used to calculate the fiscal multiplier which measures the effect of government spending on real GDP as follows:

Fiscal multiplier = 1 / (1 - MPC) = 1 / (1 - 0.75) = 1 / 0.25 = 4.0

Therefore, we have:

Change in government spending = Fiscal multiplier * Amount of targeted increase real GDP = 4.0 * $400 million = $1.6 billion

Therefore, government spending would have to change by <u>$1.6 billion</u> to generate $400 million increase in real GDP.

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Vanessa’s snowboard manufacturing company has encountered problems with one of its computerized decal makers. Vanessa might get
aivan3 [116]

The given statement, "Vanessa’s snowboard manufacturing company has encountered problems with one of its computerized decal makers. Vanessa might get someone from the Maintenance, Installation and Repair Pathway of the Manufacturing career cluster to fix the issue" is True .

<u>Explanation: </u>

Includes work in protective maintenance with computers, tools and materials. The servicing, deployment and restoration process, Computerized, digital, digital and mechanical structures for troubleshooting and repair used

They will use machines, computing systems, equipment for storing, soldering, or do manual labour. Career work in the field involves automotive owners, glass makers, manufacturing leaders and equipment technicians and metalworkers.

Maintenance, repair and upgrade functions are also sometimes used for maintenance, repair, and service. Throughout the period, computer terminology has tended to optimize.

3 0
3 years ago
Substitution and income effects of a change in price of a good may be used to explain the:
kodGreya [7K]

Answer: Option A  

   

Explanation: In simple words, substitution effect refers to the economic phenomenon which states that when price of one good rises the demand for the alternative of that particular good also rises. For example - coke and pepsi.

On the other hand, income effect states that when the price of a commodity rises, a number of consumers might find it hard to purchase due to the price exceeding their income power which further results in lower demand.

Hence from the above we can conclude that the correct option is A.

6 0
3 years ago
Outsourcing and telecommuting are examples of which workplace trend?
seraphim [82]
<h2>Answer</h2>

Technology

<h3>Explanation</h3>

Outsourcing and telecommuting are the trends related to presence of growing technology within the economy allowing various services to be outsourced to people who are more of an expert when it comes to handling those procedures. Overall, these trends are mainstream nowadays and allow businesses to succeed in an articulate manner together with allowing tertiary industry to thrive

3 0
3 years ago
Read 2 more answers
which would be considered assets? check all that apply.own a guitarchecking accountstudent loanstocks and bondsmonthly rentown a
Harrizon [31]

The correct options are

  • own a guitar
  • checking account
  • stocks and bonds
  • own a motorcycle

A resource having economic worth that a person, business, or nation possesses or controls with the hope that it would someday be useful is referred to as an asset. The balance sheet of a business lists assets. They are divided into four categories: tangible, financial, fixed, and current. They are acquired or produced in order to raise a company's worth or improve the operations of the company. Whether it's industrial equipment or a patent, an asset may be viewed of as anything that, in the future, can create cash flow, lower expenditures, or increase sales. A resource having economic worth that a person, business, or nation possesses or controls with the hope that it would someday be useful is referred to as an asset.

To know more about assets refer to brainly.com/question/19733618

#SPJ4

5 0
2 years ago
Perdue Company purchased equipment on April 1 for $93,420. The equipment was expected to have a useful life of three years, or 7
k0ka [10]

Answer:

The depreciation cost per year is:

Year 1: $16,800

Year 2: $31,200

Year 3: $27,600

Year 4: $15,120

Explanation:

To calculate the depreciation cost for the equipment based on hours used, we must determine the cost per hour:

cost per hour = (purchase cost - salvage value) / expected useful life

cost per hour = ($93,420 - $2,700) / 7,560 hours = $90,720 / 7,560 hours = $12 per hour

The depreciation cost per year is:

Year 1: 1,400 hours x $12 per hour = $16,800

Year 2: 2,600 hours x $12 per hour = $31,200

Year 3: 2,300 hours x $12 per hour = $27,600

Year 4: 1,260 hours x $12 per hour = $15,120

3 0
3 years ago
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