Answer: The change will be $400 billion.
Explanation: The marginal propensity to consume (MPC) is used to explain that increase in consumption is as a result of increase in income.
To calculate how much the equilibrium real GDP will change:
STEP1: CALCULATE THE MULTIPLIERS
multipliers = 1 ÷ (1 - MPC)
Where MPC = 0.
Therefore;
Multipliers = 1 ÷ (1 - 0.5) = 1 ÷ 0.5
Multipliers = 2
STEP 2: CALCULATE HOW MUCH THE EQUILIBRIUM REAL GDP WILL CHANGE;
Multipliers × change in consumption spending
2 × $200 billion = $400 billion
Equilibrium real GDP will change with $400 billion
The time taken to break even at buying 1 point will be in<u> 9 years</u>.
Given,
- Monthly mortgage payment =$958
- Monthly payment will be reduced to buy 1 point =$948.75
- Cost of each point =$1,000
Computation:
1. The computation of the reduced amount in the monthly mortgage payment:
2. The computation of yearly mortgage payment:
3. The computation of the number of years for the break-even by buying 1 point:
Therefore, to break even by buying 1 point the holder requires 9 years to reach.
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Answer:
True
Explanation:
A team of eight individuals from the same department who meet for a few hours each week to discuss ways of improving quality, efficiency, and the work environment are most likely a self-managed work team.
A self-managed work team is a self-organized, semi-autonomous <u>small group of employees whose members determine, plan, and manage their day-to-day activities and duties under reduced or no supervision.</u>
A self-managed work team can also be referred to as a self directed team or self-managed natural work team.
the main reason the industrial revolution first occurred in Britain was that in Britain the price of coal was low relative to labor. Thus, making everyone want to own and make products using the steam engine which ultimately created the first industrial revolution.
The Industrial Revolution, which took place between roughly 1760 and between 1820 and 1840, was the adoption of new manufacturing techniques in Great Britain, continental Europe, and the United States. This transition encompassed the switch from manual to mechanical production methods, the invention of new ways of producing chemicals and the iron, the expansion of steam and water power, the creation of machine tools, and the growth of the mechanized factory system.
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It is true that the general increase in prices over time we pay for goods and services is known as inflation.
<h3>What is inflation?</h3>
Inflation is the term used to describe an increase in the price of goods and services that households buy. It is determined by how quickly these prices fluctuate. Prices frequently rise with time, but they can also fall (a situation called deflation).
The main categories of inflation are as follows:
Demand-pull inflation: It explains how rising prices for products and services can result from increased demand. People will typically pay more for something if there is a shortage of it.
Cost-push inflation: When demand-pull inflation is active, it frequently starts up. Businesses must raise their pricing as a result of rising raw material costs, regardless of market demand.
Built-in inflation: Employees may start requesting pay increases from their employers as demand-pull inflation and cost-push inflation take place. Employers risk experiencing a labor scarcity if they don't keep their pay competitive.
Built-in inflation occurs when a company increases employee wages or salaries while also trying to maintain profit margins by boosting prices.
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