Answer:
The government should engage in expansionary fiscal policy.
Explanation:
If there is a fall in the aggregate demand in an economy then this will restore by implementing the expansionary fiscal policy and the full employment level is achieved.
Expansionary fiscal policy states that a government of this nation should reduces taxes and increases its spending for inducing the aggregate demand to boost up. Lower taxes would increase the disposable income of the consumers and hence, the demand for goods and services increases.
These changes would increase the aggregate demand and shifts rightwards. This will maintain the full employment level in this economy.
Answer:
The purchase of the new machine will decrease Kent's break-even point in units.
Explanation:
If we divide fixed costs by the revenue per unit minus the variable cost per unit, we have the break-even point in units.
The actual break-even point is 10,000 units. Let see it with the numbers.
260,000/(50-24)=10,000
The possible break-even point if Kent boghts the machine, is 9,200 because
(260,000+11,400)/(50-24-3.50)=9,200
in conclusion, the break-even point in units decreases.
Answer:
Robert's interest rate is 91.46%.
Explanation:
Given that Robert has $ 645.42 on his credit card balance, but the payment he needs to make to bring his balance to $ 0 is $ 1235.18, the interest rate for non-payment that he has in his account is as follows:
645.42 = 100
1235.18 = X
((1235.18 x 100) / 645.42) = X
191.46 = X
Therefore, since 191.46 - 100 is equal to 91.46, the interest rate that this account has is 91.46%.
