Answer: reduced by $80 billion
Explanation:
An expansionary gap is when the actual output is more than the potential output. From the question, we are told that an economy is operating with output $400 billion above its natural level, and fiscal policymakers want to close this expansionary gap and that the central bank agrees to adjust the money supply to hold the interest rate constant, so there is no crowding out.
We are also given the marginal propensity to consume is 4/5, and told that the price level is completely fixed in the short run.
To close the expansionary gap, the government would need to reduce its spending. To solve this, we have to calculate the multiplier. This will be:
Multiplier = 1/(1 - MPC)
= 1/(1 - 4/5)
= 1/1-0.8
= 1/0.2
= 5
Therefore, the government expenditure or spending will be reduced by:
= $400 billion/5
=$80 billion
If short-run equilibrium output equals 20,000 and full employment equals 25,000, then this economy has <u>recessionary.</u>
<u></u>
There have been 48 recessions in the United States dating back to the Articles of Confederation, and economists and historians determine that the 19 recessions before the Great Depression were bigger than since the end of World War II.
The health of the country's agricultural and industrial production, consumption, business investment, and banking sectors contributed to these declines.
The US recession is weighing more heavily on economies around the world, especially as national economies become more and more interdependent.
learn more about recessions here; brainly.com/question/532515
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Answer:
Asian Tigers
Explanation:
In the 1980s and 1990s these four countries from the asia; Hong Kong, South Korea, Singapore, and Taiwan achieved the status of developed countries. There was a great development in the industrial scenario of these countries which in turn greatly improved the economical condition of these countries. There influence in the region also grew with their development.
Even today these four countries are very developed in education, science and technology, exports, information & technology, innovation etc.
Answer:
The <u>FIRST STEP</u> of the procure-to-pay cycle is ordering;
Explanation:
The procure to pay cycle is the set of activities required to follow through a buying process in a company, it includes identifying the need, looking for and assigning a vendor, approving the vendor's specifications, receiving the supplies and finally paying the money owed to the vendor. This process consists of five steps:
- ordering
- follow up and expediting
- receipt and inspection
- settlement and payment
- records maintenance
Answer: Economy- activities related to the production and distribution of goods and services in a particular geographic region
Explanation: I used quizlet to find the answer
