Answer:
c. $400 billion
Explanation:
Calculation to determine what an initial increase in aggregate demand of $100 billion will eventually shift the aggregate demand curve to the right
First step is to calculate the GDP Multiplier
Using this formula
GDP Multiplier=1/(1-MPC)
Let plug in the formula
GDP Multiplier=1/1-0.75
GDP Multiplier=1/0.25
GDP Multiplier=4
Now let determine the shift in aggregate demand curve
Shift in aggregate demand curve=4*100 billion
Shift in aggregate demand curve= $400 billion
Therefore an initial increase in aggregate demand of $100 billion will eventually shift the aggregate demand curve to the right by $400 billion
Answer:
Product differentiation and advertising are profitable ventures only when:
the gain in total revenue outweighs the extra cost
Explanation:
When Company XYZ differentiates its product from competitors' through trademarks and other differentiating factors and embarks on advertising, it must watch out for cost overrun. The undertaking for the product differentiation and advertising should be able to generate more revenue than the costs. This will make Company XYZ determine that its differentiation and advertising make economic meaning by producing positive NPV.
Different insights and opinions in a collaborative setting can open up new better methods
Answer:
8,000 square foot
Explanation:
Total space available 20,000 square foot.
60 percent to be used. space left?
If 60% is will be used, only 40% will be availble for construction.
40% of 20,000= 40/100x 20,000
=0.4 x 20,000
=8,000 square foot
