Answer: C. Decrease government spending and increase taxes
Explanation:
The current GDP of this economy is $670 billion and this figure is higher than the $620 billion that the economy should be at.
This means that the economy is in danger of overheating and needs to be adjusted.
To do this one can use option C.
By REDUCING Government Expenditure, government purchases will drop which will aid in reducing the GDP.
By also INCREASING Taxes, the amount of money left for people to consume after they pay their taxes is less so that REDUCES Consumption as well leading to a smaller GDP.
Doing this is known as a CONTRACTIONARY FISCAL POLICY.
Answer:
a. $39,400
b. $157,600
c. $6,304
Explanation:
a. Down payment
Bank requires 20% down payment
= 20% * 197,000
= $39,400
b. Mortgage amount
= Price of house - down payment
= 197,000 - 39,400
= $157,600
c. Amount at 4 points:
= Mortgage * 4%
= 157,600 * 4%
= $6,304
Correct/Complete Question:
The United States produces computers and sells them to Russia. At the same time, Russia produces cars and sells them to the United States. Suppose there is an appreciation in the dollar. This will cause:
Answer:
increase in imports into the United States and decrease in exports to Russia will occur, which will cause a decrease in aggregate demand and real GDP
Explanation:
Aggregate demand is the total demand for a good or service in an economy at a given time. Real GDP on the other hand can be defined as an inflated value of goods and services in an economy at a certain period of time. An inflation of the dollar will increase imports into the united states as it would decrease the exports to Russia. This because the appreciation of the dollar will affect the prices of both computers and cars. And as such will
Answer: $2289
Explanation:
First, we have to calculate the gross percentage which would be:
= (Revenue - Cost of goods sold) Revenue
= ($124000 - $86800) / $$124000
= 30%
Therefore, the amount of gross profit must Panner defer in reporting this investment using the equity method would be:
= ($21800 × 30%) × 35%
= $21800 × 0.3 × 0.35
= $2289
Answer:
the difference between the price that sellers receive and the price that buyers pay, resulting from a subsidy government cheese.
Explanation:
In Economics, subsidy can be defined as the amount of money or benefits such as tax reduction given by the government to sellers in order to sustain production and enable the buy to continuously purchase the product.
A subsidy wedge can be defined as the difference between the price that sellers receive and the price that buyers pay, resulting from a subsidy government cheese.
