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yarga [219]
3 years ago
15

Why is the cyclically adjusted budget balance a better measure of the long-run sustainability of government policies than the ac

tual budget balance
Business
1 answer:
irina1246 [14]3 years ago
5 0

Answer:

because In the long run, real GDP tends to potential output.

Explanation:

Since actual GDP continues to increase economic output in the longer term, the seasonally adjusted annual budget balance is a better predictor of public policies ' long-term sustainability. ... Economic GDP dropped in recessions.

This means that incomes for consumers, business investment and profits for producers also fall.

The cyclically adjusted expenditure balance plays an important role in the EU budgetary framework, which still provides a better picture of fiscal policy focus.

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Who want to do 1v1 lol with me
Licemer1 [7]
On what lol ? I’m curious but yeah sure
5 0
2 years ago
Read 2 more answers
Look at the chart displaying the human development index (HDI) worldwide, which is linked to a high standard of living. Based on
Vilka [71]
Thank you for posting your question here at brainly. I hope the answer will help you. Feel free to ask more questions.

Below are the choices:

A. As HDI increases, so does a nation's level of development. 
<span>B. A low HDI usually means that an economy is developed. </span>
<span>C. The HDI varies less in countries below the equator than those above the equator. </span>
D. The HDI is highest in countries with command economies.
<span>According to information about developing and developed countries in the world, sentence A is correct, because most countries with the high level of HDI are the most developed.</span>
5 0
3 years ago
Answer the question on the basis of the following data for the hypothetical nations of Alpha and Beta. Qs is domestic quantity s
bezimeni [28]

Question Completion:

Domestic Market for Steel, Alpha

Qs P Qd

60 5 10

40 4 20

30 3 30

20 2 40

10 1 50

Domestic Market for Steel, Beta

Qs P Qd

80 5 20

70 4 30

60 3 40

50 2 50

40 1 60

Answer:

Assuming that Alpha and Beta are the only two nations in the world, at the equilibrium world price:

Beta will export steel and Alpha will import steel.

Explanation:

a) Data and Calculations:

Domestic and World Market for Steel

Alpha                   Beta           World Market

Qs    P      Qd       Qs    P      Qd       Qs    P       Qd  

60    5        10       80    5       20      140    5       30

40    4       20       70    4       30       110     4       50

30    3       30       60    3       40       90     3       70

25   2.50  35       55    2.50  45       80    2.50  80

20   2       40       50    2       50        70    2       90

10   1       50        40    1        60       50     1       110

b) In the world market, equilibrium will occur at a price of $2.50, when the quantity supplied and demanded will be 80.  At this equilibrium price of $2.50, Alpha will supply 25 units, and Beta will supply 55 units.  Alpha will demand 35 units, and Beta will demand 45 units.  This implies that Beta will supply more than its demand for steel, while Alpha will supply less.  Therefore, Beta will export steel and Alpha will import steel.

4 0
3 years ago
Suppose nominal GDP in 2006 was $14460 billion. If the current year price index is 127. What was the real GDP for 2006 (in billi
Musya8 [376]

Answer:

$113.86 billion

Explanation:

Real GDP = nominal GDP/ price index

Real GDP =  $14460 billion / 127 = $113.86 billion

I hope my answer helps you

7 0
3 years ago
A stock has a beta of 1.4, an expected return of 17.2 percent, and lies on the security market line. A risk-free asset is yieldi
andrew-mc [135]

Answer:

the portfolio's return will be Ep(r)= 9.2 %

Explanation:

if the stock lies on the security market line , then the expected return will be

Ep(r) = rf + β*( E(M)- rf)

where

Ep(r) = expected return of the portfolio

rf= risk free return

E(M) = expected return of the market

β = portfolio's beta

then

Ep(r) = rf + β*( E(M)- rf)

E(M) = (Ep(r) - rf ) / β + rf

replacing values

E(M) = (Ep(r) - rf ) / β + rf

E(M) = ( 17.2% - 3.2%) /1.4 + 3.2% = 13.2%

since the stock and the risk free asset belongs to the security market line , a combination of both will also lie in this line, then the previous equation of expected return also applies.

Thus for a portfolio of β=0.6

Ep(r) = rf + β*( E(M)- rf) = 3.2% + 0.6*(13.2%-3.2%) = 9.2 %

Ep(r)= 9.2 %

5 0
3 years ago
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