Answer:
A. permanent cuts in business taxes
Explanation:
Cutting taxes is a government fiscal policy that aims at increasing aggregate demand, thereby stimulating growth. Real GDP is the total value of a country production adjusted for inflation. A cut in business taxes reduces the cost of production. Sellers can offer goods to customers at a lower price. A reduction in prices has similar effects to an increase in incomes. With an increase in purchasing power, individuals will have the ability to buy more, leading to an increase in demand.
Manufacturers react to an increase in demand by producing more goods. An increase in production is an increase in real GDP. Therefore, a permanent cut in taxes will lead to an increase in real GDP. Real GDP is calculated per financial year. A temporal tax cut may lead to a term short term rise in demand.
Answer
Explanation:
producers and consumers in the market.
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<span>Accounts receivable is money or payment held by a business for goods supplied and/or services rendered that customers/clients have ordered but not paid. In this case they already have balance amount to be paid, again they are sending new shipment. so account receivable will go up automatically.</span>
Complete question is stated below:
Lisa consumes only pizzas and burritos. In equilibrium, her marginal utility of pizza is 30 and her marginal utility of a burrito is 24. The price of a pizza is $5. What is the price of a burrito?
Explanation:
When there is equilibrium, the ratio of the marginal utility of a one commodity divided by the price of that commodity must be equal to the marginal
utility of 2nd commodity divided by the price of a 2nd commodity.
Therefore:
Marginal utility of pizza / Price of Pizza = Marginal utility of Burrito / Price of Burrito
Thus, the price of a burrito must be $4.