In the fiscal policies of governments, automatic stabilizers are meant to correct and stabilize the fluctuations that arise within the economy of nations. The policy tools that are considered automatic stabilizers are;
- A progressive income tax structure
- Government unemployment benefits
At times, the economy of a nation might experience shocks and destabilizations. These policy tools listed above are meant to generate taxes from the citizens that would cushion the effects of these shocks.
They help to increase the flow of money in the economy when it is passing through difficulties like recessions.
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Answer:
Building a business case for the new product
Explanation:
The stage where new a business case can be effectively developed is during the product analysis of the new product development phase.
This phase considers all the external factors for example the cost of production, market penetration and consumer satisfaction.
GoPro will most probably analyse the profitability and sustainability of the product in the market to make a decision regarding it.
Because of the principles of Keynesianism, the entire new deal was founded on the concept of deficit spending to stimulate the economy and end the depression.
Keynesians contend that because prices are somewhat rigid, changes in any aspect of spending, including government, investment, or consumer spending, affect output. According to Keynesian economics, a healthy economy spends or invests more than it saves and that demand drives supply. Keynes believed that governments should increase spending even if it means going into debt in order to generate jobs and increase consumer purchasing power during a recession. Deficit spending is when the federal budget deficit for a given year is calculated as the difference between the federal government's outlays (also known as outlays) and its tax revenue (also known as revenue). An annual surplus rather than a deficit occurs when the government raises more money than it spends.
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If demand for a good is extremely elastic, raising the price of that good typically has what effect on total revenue--- decreases
If demand is elastic at a given price level, then should a company cut its price, the percentage drop in price will result in an even larger percentage increase in the quantity sold—thus raising total revenue. However, if demand is inelastic at the original quantity level, then should the company raise its prices, the percentage increase in price will result in a smaller percentage decrease in the quantity sold—and total revenue will rise.
Demand elasticity :
Demand elasticity is the change in quantity demanded per change in a demand determinant. Although there are several demand determinants, such as consumer preferences, the main determinant with which demand elasticity is measured is the change in price. Businesses are particularly interested in price elasticity, since it measures by how much total revenue changes with the price.
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