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spin [16.1K]
3 years ago
12

In a certain year, the aggregate amount demanded at the existing price level consists of $100 billion of consumption, $40 billio

n of investment, $10 billion of net exports, and $20 billion of government purchases. Full-employment GDP is $120 billion. To obtain price-level stability under these conditions, the government should
Business
1 answer:
valkas [14]3 years ago
5 0

Answer:

The answer is: decrease government spending or increase tax rates.

Explanation:

Nominal GDP is currently $170 billions (= $100 billions + $40 billions + $20 billions + $10 billions).

Since full employment GDP = $120 billions, the nominal GDP is much higher ($170 billions > $120 billions). So the government must try to cool the economy and the two main ways it can do it is by reducing government spending or by raising taxes which will lower private consumption.

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Suppose the economies of China and India have begun to slow down very rapidly. Based on this scenario
bazaltina [42]

Answer:

The correct answer is C

Explanation:

Economies means the state of the region or the country in relation to the consumption and the production of the services and the goods and also the supply of the money.

If the economies of the India and the China, will be slow down, then the loanable funds as well as the interest rates will increase because the money for liquidity will be negligible which lead to competition among using the money for personal consumption or to delay the consumption through lending the money out.

6 0
3 years ago
Havermill Co. establishes a $250 petty cash fund on September 1. On September 30, the fund is replenished. The accumulated recei
allochka39001 [22]

Answer:

e. Debit Petty Cash $50       Credit Cash  $ 50

Explanation:

The entry on October 01 is to reflect the increase in Petty Cash from $ 250 to $ 300. i.e the incremental effect is only $ 50. This is because for the regular replenishment that was done on September 30, the following entry would have been recorded:

Petty Cash - Debit   $ 232

Cash          - Credit   $ 232

The entry for recording the petty cash expenses would be as follows;

Office Supplies expense         debit    $ 73

Merchandise Inventory           debit     $ 137

Miscellaneous expenses        debit      $ 22

Petty Cash                               credit     $ 232

7 0
3 years ago
When ruko, a device used to stream movies at home, increases prices by 48% total revenue decreases by 61%?
Free_Kalibri [48]

Answer: Demand is elastic

Explanation:

Total revenue from the sale of a good is negatively related to the price when demand for the good is elastic and positively related to the price when demand for the good is inelastic.

So, as increase in price by 48% decreases total revenue by 61%, therefore the demand for Ruko, a device used to stream movies at home is elastic.

3 0
3 years ago
Sales variance analysis is used by managers for: Select one: a. Planning purposes only. b. Budgeting purposes only. c. Control p
pychu [463]

Answer:

e. Planning and budgeting purposes.

Explanation:

Sales variance analysis is used by managers for planning and budgeting purposes, as this analysis allows managers to better understand the company's sales scenario in a given period in relation to different variables such as budgeted quantity, quantity sold and amount of profit made.

Through analysis, greater control and strategic planning and future budgets are possible so that an organization remains profitable and competitive in the market.

5 0
3 years ago
A group of individuals from the same business sector who try to persuade politicians to
german

Answer:

Lobby

Explanation:

The term lobby refers to a group of people who band together and try to influence people in public office and politicians.

3 0
2 years ago
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