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nlexa [21]
2 years ago
10

Why does a​ $1 increase in government purchases lead to more than a​ $1 increase in income and​ spending? A. Through the governm

ent purchases​ multiplier, the​ $1 increase in government spending will lead to a decrease in aggregate demand and national​ income, which will lead to an increase in induced spending. B. Through the government purchases​ multiplier, the​ $1 increase in government spending will lead to a decrease in aggregate demand and national​ income, which will lead to a decrease in induced spending. C. Through the government purchases​ multiplier, the​ $1 increase in government spending will lead to an increase in aggregate demand and national​ income, which will lead to a decrease in induced spending. D. Through the government purchases​ multiplier, the​ $1 increase in government spending will lead to an increase in aggregate demand and national​ income, which will lead to an increase in induced spending.
Business
1 answer:
MArishka [77]2 years ago
8 0

Answer:

D. Through the government purchases​ multiplier, the​ $1 increase in government spending will lead to an increase in aggregate demand and national​ income, which will lead to an increase in induced spending.

Explanation:

We know,

Multiplier = Changing real equilibrium GDP ÷Change of government spending.

If we increase the multiplier, government spending will lead to an increase in aggregate demand that is potential GDP is higher than actual GDP and national​ income, which will lead to an increase in induced spending. Therefore option D is the correct answer as options A, B, and C do not meet the requirements.

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Journalize the adjusting entry needed at December 31 for each situation. Record debits first, then credits. Check your spelling
11Alexandr11 [23.1K]

Answer:

1    

dr Rent expenses 440  

cr Prepaid rent                  440

Rent december    

2    

dr Depreciation expenses 183,33  

cr Accumulate depreciation  183,33

Depreciation december

Explanation:

1    

dr Rent expenses 440  

cr Prepaid rent                  440

Rent december    

   

2    

dr Depreciation expenses 183,33  

cr Accumulate depreciation  183,33

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7 0
2 years ago
When this market is in equilibrium, price is $ $6 and quantity bought and sold is 300 units. In equilibrium, consumer surplus is
Gnom [1K]

Answer: hello your question is incomplete attached below is the missing information

Answer :

$900

$600

<u>Given the new price of $4 by Government </u>

quantity demanded = 400 units

quantity supplied = 150 units

quantity bought and sold = 150 units

  • $975
  • $150
  • $375

Explanation:

Consumer surplus ( area below demand curve and above $300  

= Area of triangle = 0.5 * base * height

= 0.5 * 300 ( 12 - 6 )  = $900

producer surplus ( area above supply curve and below $300

=  Area of the triangle = 0.5 * 300 ( 6-2 ) = $600

<u>Given the new price of $4 by Government </u>

quantity demanded = 400 units

quantity supplied = 150 units

quantity bought and sold = 150 units

Consumer surplus ( area of triangle + area of rectangle )

= 0.5 * 150 * ( 12-9 )+ L*B

= 0.5 * 150 * ( 3 ) + 150 * ( 9 - 4 )  = $975

producer surplus ( Area of triangle )

= 0.5 * 150 * (4-2) = $150

deadweight loss ( area of triangle )

= 0.5 * ( 300 - 150 ) ( 9-4 )

= $375

6 0
2 years ago
Jeannie plans to deposit $6,000 in a money market sinking fund at the end of each year for the next four years. What is the amou
Mnenie [13.5K]

Answer:

A. The first cash flow of an annuity due is made on the first day of the agreement.

G. The last cash flow of an ordinary annuity is made on the last day covered by the agreement.

Explanation:

The computation is shown below:

As we know that

Future value after 4 years is

= Annual deposit  × Cumulative FV factor at 9% for 4 periods of an ordinary annuity

= $6,000 × 4.57313

= $27,439

Therefore the above statements are true and the same is to be considered

Hence, all other statements are incorrect

5 0
2 years ago
Pablo management has ten part-time employees, each of whom earns $145 per day. they are normally paid on fridays for work comple
kvv77 [185]

Explanation:

December 31, 2016: To record accrued wages for one day (10 workers × $145) = $1,450.

January 4, 2017: To record accrued and current wages.

Wages expense = 10 workers × 3 days × $145 = $4,350

Cash = 10 workers × 4 days × $145 = $5,800.

See attached photo.

4 0
3 years ago
When a temporary negative supply shock hits the economy​ ________.
Naddika [18.5K]

Answer:

C. the divine coincidence does not always hold

Explanation:

When a temporary negative supply shock hits the economy the divine coincidence does not always hold.

7 0
3 years ago
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