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Anarel [89]
3 years ago
12

As an elected official, you have been informed that real gdp is below its potential and that action should be taken to encourage

economic growth and bring the economy to its long-run equilibrium. if the marginal propensity to consume is 0.8 and the amount of new government spending is $600 billion, by how much would the economy be stimulated
Business
1 answer:
il63 [147K]3 years ago
6 0

To find the answer, we first calculate the multiplier.

By using the equation,

ms= 1 ÷ (1 – MPC)

MPC = marginal propensity to consume = 0.8

ms= 1 ÷ (1 – MPC) = 1 ÷ (1 - 0.8)

= 5

Thus, the multiplier is 5.

An increase in government spending = $600 billion

Now, multiplied $600 billion by the multiplier, which is 5.

$600 billion x 5

= $3,000

Thus, the answer is $3,000 billion increase in real GDP.

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Answer:

$135,100

Explanation:

Given :

Cost of purchasing: $140,500

Operating expenses :$80,600

beginning inventory:$12,900

Ending inventory:$18,300

sales revenue :$300,700

Gross profit of the year can be determined by

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8 0
4 years ago
A corporation has issued 30,000 shares of $50 par common stock and holds 5,000 of these shares as treasury stock. If the corpora
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Answer:

The amount of $25,000 will be recorded as the Cash Dividends

Explanation:

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Cash Dividend = Number of Shares × Rate per share

where

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Number of shares = Issued Shares - Treasury Stock

= 30,000 - 5,000

= 25,000

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= $25,000

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3 years ago
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Answer:

Strategic dissonance

Explanation:

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What is the difference between the conditions of secured and unsecured loans?
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if you are approved for a secured loan, a lender will put a lien on an asset until the loan is paid off. An unsecured personal loan, by contrast, does not require any collateral. Examples of unsecured loans can include credit cards, student loans, unsecured personal loans, and unsecured personal lines of credit.

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