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yarga [219]
2 years ago
10

Suppose that the level of GDP increased by $100 billion in a private closed economy where the marginal propensity to consume is

0.5. Aggregate expenditures must have increased by
Business
1 answer:
Sunny_sXe [5.5K]2 years ago
7 0

Answer:

Aggregate expenditure must have increased by $50 billion

Explanation:

We have given level of GDP is increased by $100 billion

Marginal prosperity MPS = 0.5

So multiplier m=\frac{1}{1-MPS}=\frac{1}{1-0.5}=2

We have to find the aggregate expenditure change

Aggregate expenditure change is given by =\frac{level\ of\ increase\ in\ GDP}{multiplier}=\frac{100}{2}=$50billion  

So aggregate expenditure must have increased by $50 billion

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Answer:

Total Manufacturing cost per unit is $53

Explanation:

Manufacturing cost is the cost used to manufacture a product, both direct and indirect cost incurred in manufacturing process are included. It is the total value of material cost, labor cost and overhead cost.

Direct Material Cost = $18

Direct Labor cost  = $5 per hour

Manufacturing overhead applied = $13 per unit

Total Activity rate = $30

Activity based costing is the method of allocation of overhead to the products / department / projects on the basis of uses of activity by each one.As we know that calculating an activity rate which is similar to predetermined overhead rate.

Total Manufacturing Cost = Direct material cost + Direct Labor cost + Manufacturing overhead cost

As we know that calculating an activity rate which is similar to predetermined overhead rate. so the activity rate will be used for overhead expense.

Total Manufacturing Cost = $18 + $5 + $30 = $53 per unit

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3 years ago
In the treatment of U.S. exports and imports, national income accountants _____. rev: 04_09_2018 Multiple Choice subtract export
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Answer:

The correct answer is: add exports but subtract imports in calculating GDP.

Explanation:

National income refers to the production of goods and services by the residents of a nation within the geographical boundaries of a nation in a given period.

In the calculation of national income, net exports are included. This net export is the difference between exports and imports. In other words, we can say that exports are added and imports are included.

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