Answer:
increase by $800
Explanation:
if taxes decrease by 200 then
GPD x tax multipler = net impact on GDP
the tax multiplier is calculated as follows:
multiplier = 4
tax variation x multiplier
200 x 4 = 800
As the taxes decreases the effect on the GDP is positive.
Answer: This implies that the cross elasticity of demand between orange juice and apple juice is <u>0.5.</u>
Explanation:
The cross elasticity of demand is evaluated as:
Price of orange juice increased by 20 percent, which resulted in a 10 percent increase in the quantity of apple juice consumed.
The cross elasticity of demand 
The cross elasticity of demand = 0.5
Hence, This implies that the cross elasticity of demand between orange juice and apple juice is <u>0.5.</u>
Answer:
$4.00
Explanation:
the required rate of return=dividend yield(2/3)+growth rate(1/3)
The dividend yield of the stock is defined as the expected dividend divided by the current share price
dividend yield=expected dividend(in 1 year)/share price
dividend yield=2/3*15%=10%
expected dividend=unknown
share price=$42
10%=expected dividend/$42
expected dividend=10%*$42=$4.20
expected dividend=D0*(1+g)
g=growth rate=1/3*15%=5%
$4.20=D0*(1+5%)
$4.20=D0*1.05
D0=$4.20/1.05
D0=$4.00
Answer:
The long run is best defined as a time period
- during which all inputs can be varied.
One thing that distinguishes the short run and the long run is
- the existence of at least one fixed input.
Explanation:
On the long run, all productive inputs can be changed and/or altered. that includes fixed costs like equipment and machinery, building facilities, processes, wages, etc.
On the short run, at least one of the inputs used to produce our goods or services cannot be changed, e.g. wages tend to be sticky, fixed costs (depreciation of equipment and machinery, buildings, etc.)
