GDP stands for gross domestic product.
MPC stands for marginal propensity to consume (the ratio of the ratio of change in consumption to change in income)
From MPC you obtain the GDP Multiplier, which gives the relationship between a change in a particular expenditure and the GDP.
This is: Change in GDP = Mutliplier * Change in expenditure
The multiplier is equal to 1 / [ 1 - MPC].
Now use that information to calculations.
<span>Change in GDP with MPC of 0.9
multiplier = 1 / [1 - 0.9 ] = 1 / 0.1 = 10
Change in GDP = 8 billions*10 = 80 billions.
Change in GDP with MPC of 0.8 </span>
multiplier = 1 / [1 - 0.8] = 1 /0.2 = 5
Change in GDP = 8 billions*5 = 40 billions
Acquisition is never an easy feat. One of the problems that was associated with the acquisition of Santa Isabel by Royal Ahold, was that in that year, Ahold's books went red. The reason for this was put on Santa Isabel.
<h3>What is an acquisition?</h3>
An acquisition in business refers to the purchase of majority stake in a company. This is known as a partial acquisition.
In some cases, there are 100% acquisitions. In this case, there was first a partial acquisition to the tune of 70%.
This translated to unwarranted legal battles for Royal Ahold who was asked to pay more for the remaining 30% by a minority shareholders.
The recommendations must come from a technical/financial analysis of what the opportunities are for Royal Ahold should they gain 100% control of the company.
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Answer: $0
Explanation:
The cyclical deficit occurs when there is a different between the actual output and the potential output. This is why it is calculated by the formula:
= Tax rate * ( Potential output - Actual output)
As the economy here is at the potential output, it means that both the actual and the potential output are the same. In such a case, there would be no cyclical deficit.
This can be proven by the formula:
= Tax rate * ( Potential output - Actual output)
= 30% * (0)
= $0
Answer:
which of the following is not considered a credit?
overdraft fee
Explanation:
Answer:
the supply of oil is very inelastic and the demand for gasoline is inelastic over short periods of time.
Explanation:
In Economics, there are primarily two (2) factors which affect the availability and the price at which goods and services are sold or provided, these are demand and supply.
The law of demand states that, the higher the demand for goods and services, the higher the price it would be sold all things being equal. On the other hand, law of supply states that the higher the price of goods and services, the lower the supply.
The process involved in bringing oil to world markets can take years. Substitutes for oil-based products such as gasoline are limited. As a result, the supply of oil is very inelastic and the demand for gasoline is inelastic over short periods of time.
