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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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Answer:

D) Overhead was underapplied by $4,000.

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In this case, the balance of the manufacturing overhead control is $124,000 while the balance of the applied manufacturing overhead account is $120,000. This means that actual overhead costs were $4,000 higher than budgeted.

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Answer:

Advergame

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7 0
4 years ago
Following a peso appreciation relative to the dollar, which of the following results is expected to occur?
liubo4ka [24]

Answer:

B

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As a result Mexican goods would become more expensive to US consumers and the revenue earned by Mexican producers would increase

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3 years ago
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<em>That answer is A. True</em>

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4 years ago
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