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Jlenok [28]
2 years ago
15

Suppose that the MPC is 0.8 and that $14 trillion of real GDP is currently being demanded. The government wants to increase real

GDP demanded to $15 trillion at the given price level. By how much would it have to increase government purchases to achieve this goal?
Business
1 answer:
DaniilM [7]2 years ago
6 0

Answer:

$200 billion

Explanation:

Given that,

Marginal propensity to consume, MPC = 0.8

Real GDP currently being demanded = $14 trillion

Government wants to increase real GDP demanded to $15 trillion.

Multiplier:

=\frac{1}{1 - MPC}

=\frac{1}{1 - 0.8}

= 5

Government wants to increase real GDP by:

= $15 trillion - $14 trillion

= $1 trillion

Therefore, the government has to increase spending:

=\frac{1}{multiplier}\times Desired\ increase\ in\ real\ GDP

=\frac{1}{5}\times 1 trillion

= 0.2 × $1 trillion

= $200 billion

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lapo4ka [179]

Answer:

A.Pattern Department 57 per DLH

Cut and Sew Department 78 per DLH

B.Small glove 8.52

Medium glove 10.65

Large glove 12.78

Explanation:

a) Calculation to Determine the two production department factory overhead rates.

Pattern Department = 165,200/2,900

= 56.9 Approximately 57 per DLH

Cut and Sew Department = 273,000/3,500

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Therefore two production department factory overhead rates will be :

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Cut and Sew Department 78 per DLH

b) Calculation of the factory overhead cost per unit

Small glove (57*.04+78*.08)=8.52

Medium glove (57*.05+78*.10)=10.65

Large glove (57*.06+78*.12)=12.78

Therefore the factory overhead per unit for each product will be: Small glove 8.52

Medium glove 10.65

Large glove 12.78

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3 years ago
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8 0
3 years ago
Over the next few years, several newly constructed office blocks will become available at the World Trade Center site. As well,
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Answer:

The correct answer is Unambiguously higher equilibrium quantity, and equilibrium rental rates could be higher or lower.

Explanation:

An economic equilibrium is a state of the world in which economic forces are balanced and in the absence of external influences the values of economic variables do not change. It is the point at which the quantity demanded and the quantity offered are equal, a market equilibrium, for example, refers to the condition in which the market price is established through competition so that the quantity of Goods and services desired by buyers is equal to the amount of goods and services produced by sellers. This price is usually called the equilibrium price and tends to remain stable as long as demand and supply do not vary.

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Answer:

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Explanation:

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