Answer:
$100 billion
Explanation:
Real GDP is currently = $13.55 trillion
Potential real GDP = $14.0 trillion
Gap = $500 billion
Government purchases multiplier = 5.0
Tax multiplier = 4.0
To increase aggregate demand by $500 billion, the required increase in government expenditure is:
= (1 ÷ government purchases multiplier) × change in aggregate demand
= (1 ÷ 5) × $500
= $100 billion
Therefore, the government expenditure need to be increased by $100 billion.
Answer: $13.25
Explanation:
From the question, we are informed that an oral auction has bidders willing to pay $4, $6, $9, $12, $13, and $15 for an item.
Based on the above scenario, the winning bidder will pay a little more than $13 or $13.25. This is because the bidder with the highest pay is willing to pay $15 but since the next person is willing to pay $13, that means the next bidder will price it at an amount that is a little bit above $13 which is $13.25.
It would be easier to expand your first text box if you don't want to take the risk of lumping everything together. Move your work to one text box and expand it so it all fits.
Answer:
Sandy is not entitled to any money.
Explanation:
Reasons:
- Sandy was unaware of the original offer for a reward.
- The dog's owner did not accept Sandy's own offer.
Answer:
Natural gas is debited by $6.3 million and asset retirement obligation is credited by $6.3 million.
Explanation:
According to the scenario, computation of the given data are as follow:-
Estimated cost = $16 million
Present value = $6.3 million
So, we will make journal entry for asset retirement obligation by taking present value of assets.
Journal entry to record the asset retirement obligation are as follows :-
Natural gas facility A/c Dr. $6,300,000
To Asset retirement obligation A/c $6,300,000
( Being asset retirement obligation is recorded)
