Answer:
$120 billion
Explanation:
Economy operating at $300 billion above its natural level of output.
Marginal propensity to consume, MPC = 3/5 = 0.6
For closing this expansionary gap, the government have to decrease its spending by the amount calculated as follows:
Spending multiplier:
= 1/ (1 - MPC)
= 1/ (1 - 0.6)
= 1/ 0.4
= 2.5
Hence, the government spending reduces by
= Expansionary gap ÷ Spending multiplier
= $300 ÷ 2.5
= $120 billion
Answer:
(B) Advice the production and purchasing department to produce or order smaller quantities of products.
Explanation:
According to my research on basic economics and business owning I can say that the best thing for Georgia to do in this situation in order to help her company become more value driven is to Advice the production and purchasing department to produce or order smaller quantities of products. This is because since product is not selling fast enough they should sell what they already have before producing more, otherwise they will be wasting money on products which will eventually cause them to be overflowing stock. Thus losing money.
I hope this answered your question. If you have any more questions feel free to ask away at Brainly.
Answer:Return on Equity= 37.1%
Explanation:
According to the DuPont Analysis System,
Return on Equity = Leverage Ratio x Net profit margin x Total asset turnover
Return on Equity = 2.8 x 5.3% x 2.5
Return on Equity=0.371
Return on Equity= 37.1%
Answer:
$86.67 is the profit maximizing price for the monopolist
Explanation:
In order to find the profit maximizing price for the monopolist using its price elasticity and marginal cost we have to use the formula
Price= Marginal cost* (elasticity/elasticity+1)
Marginal cost = $65.0065
Elasticity = -4
Price = 65.0065 *(-4/-4+1) = 65.0065*(-4/-3)= 86.67
Answer:
price takers
Explanation:
The buyers and sellers that just accept the prices are called price takers-