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Svetach [21]
3 years ago
5

Answer the following questions, which relate to the aggregate expenditures model: Instructions: Enter your answer as a whole num

ber. a. Given the following: Ca = $120, Ig = $60, Xn = − $10, and G = $30, what is the economy’s equilibrium GDP? b. If real GDP in an economy is currently $230, will the economy’s real GDP rise, fall, or stay the same? c. Suppose that full-employment (and full-capacity) output in an economy is $230. If Ca = $170, Ig = $60, Xn = − $10, and G = $30, what will be the macroeconomic result?
Business
1 answer:
Licemer1 [7]3 years ago
8 0

Answer:

A. $200

B. Fall

C. Inflationary expenditure gap and employment levels are higher than the full employment level.

Explanation:

A. Equilibrium occurs where real output (Y) equals aggregate expenditures (AE), where AE = C + Ig+ G +Xn.

Therefore the equilibrium value is:

Y = AE = C + Ig+ G +Xn

= $120 + $60 +(-$10) +$30 = $200

B. If real GDP is $230 and the aggregate expenditures of $200 will result in positive unplanned inventory investment which means GDP will fall as firms respond to the inventory build-up by reducing output.

C. C + Ig+ G +Xn

$170 + $60 + (−$10) +$30 =$250

Therefore since full-employment and full-capacity output in the economy is $230 there is an inflationary expenditure gap and employment levels are higher than the full employment level.

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7 0
2 years ago
Western Company is preparing a cash budget for June. The company has $11,000 cash at the beginning of June and anticipates $31,0
Semenov [28]

Answer:

Borrow $19,500

Explanation:

The movement in the cash balance between the beginning an end of a period may be expressed as

opening balance + cash collection - cash disbursed = closing balance

As such, where the  company has $11,000 cash at the beginning of June and anticipates $31,000 in cash receipts and $36,500 in cash disbursements during June, the expected closing balance

= $11,000 + $31,000 - $36,500

= $5,500

If the company is owing the bank $15,000 then the company would still owe

= $5,500 - $15,000

= ($9,500)

If the company is expected to maintain a balance of $10,000, the amount to be borrowed must be $10000 in excess of the amount owed the bank. Hence amount to be borrowed

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4 0
4 years ago
A. treats financial indicators as the sole measurement of performance B. evaluates performance based on organizational participa
natta225 [31]

Answer:

Option D: Incorporates both financial and operational performance measures

Explanation:

Balance Scorecard Concept

This was said to be published in 1992 by Kaplan and Norton. Thereafter, a book version was made in 1996.

It is also said to be a form of Traditional performance measurement that depends on external accounting data as out of date(old/out of use).

This approach aim to obtain 'balance' to the financial perspective.

Balanced Scorecard

This is simply regarded as a form of strategic planning and management system that is being used to merge or align business activities to the vision and strategy of the organization through the act of monitoring performance against strategic goals.

Importance of Balanced Scorecard

1. Improve organizational performance by measuring what matters

2. Increase focus on strategy and results

3. Align organization strategy with workers on a day-to-day basis.

3. Focus mainly on the drivers key to future performance

6 0
3 years ago
Which of the following is NOT an advantage of personal selling?
Alex73 [517]

Answer:

D. Personal selling is not as effective as other forms of sales promotion.

Explanation:

Personal selling refers to the selling which could be done face to face. The seller sells its product by convincing skills, look and appearance, having product knowledge so that he or she could communicate in a better way and give the proper benefits of the product and attract the customer so that he or she could purchase the product

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3 years ago
Which of the following is a feature of a credit card ?
Sergio [31]
The answer should be D if not it's A
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