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Mazyrski [523]
3 years ago
10

Consider the following statement: ''Real GDP is currently $17.7 trillion, and potential real GDP is $17.4 trillion. If Congress

and the president would decrease government purchases by $300 billion or increase taxes by $300 billion the economy could be brought t equilibrium at potential GDP.'' If government purchases were to decrease by $300 billion or if taxes were increased by $300 billion, the equilibrium level of real GDP would decrease by:________
A. exactly $300 billion.
B. less than $300 billion.
C. more than $300 billion.
D. None of the above
Business
1 answer:
Elena L [17]3 years ago
6 0

Answer:

C. more than $300 billion.

Explanation:

As it is given that

Decrease in government purchase by $300 billion

Tax increased by $300 billion

Based on this we can interpret that if there is a more decrease in gross domestic product which leads to the decrease in government expenditure or the government tax is increased is because of multiplier effect as it shows the positive relationship between the spending and the final income

Therefore, the third option is correct

Hence, the above statement is false

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In supermarket retailing, _____ percent of endcaps should be unadvertised "sale" items that will cause the customer to be alert
Darya [45]

In supermarket retailing, 25 percent of end caps should be unadvertised "sale" items that will cause the customer to be alert when looking at an end caps while travelling through the store.

Explanation:

"Unadvertised" means that only clients who are shopping in this store are advertised.

For example is an item that was marked down in between printings for the weekly store sales flyers.

So the deal may not have made the flyer, but you will see the shelf label that marks the item as discounted once it is in the store.

Unadvertised retail prices play a competitive role. For this model, we produce a balance of rational prospects in which each store randomly announces the cost of one product in accordance with a blended approach.

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3 years ago
Out of a list of the values 12, 7, 3, 5, 8, and 2, which result would the MIN function return?
sertanlavr [38]

Answer:

2

Explanation:

It’s just right, trust

3 0
3 years ago
Read 2 more answers
How does manufacturing create the multiplier effect?
MrRissso [65]

Answer:

For every $1.00 spent in manufacturing, another $2.79 is added to the economy

Explanation:

hope this helps

4 0
2 years ago
Suppose the government requires each firm to reduce sulfur dioxide emissions by an equal amount such that total emissions are re
stealth61 [152]

Answer:

is not efficient because firms can have different costs of reducing pollution.

Explanation:

Economic efficiency is the way a business maximises the use of factors of production (land, labor, capital) to produce output at a reduced cost. Efficiency aims to improve output and reduce cost to the barest minimum.

In this instance to individual cost required to reduce sulfur dioxide emissions is not considered by the government.

Since reduction of sulfur dioxide is equal among firms, some smaller ones may incur cost that will financially impair them and put them out of business.

While bigger firms will easily bear the cost.

7 0
3 years ago
What basically compares what an individual owes compared with how much they earn monthly?
STALIN [3.7K]

Answer:

C. Debt to Income Ratio

Explanation:

The debt to income ratio (DTI)provides a picture of the level of debts of a borrower. The DTI is usually expressed as a percentage of gross income. A high debt to income ratio indicates a person spends a high percentage of income on paying debts.

Lenders use the debt to income ratio to assess a borrower's ability to repay debts. Individuals with low DTI are preferred to those with a high one.

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