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harina [27]
2 years ago
9

Suppose real GDP is $13 trillion, potential real GDP is $13.5 trillion, and Congress and the President plan to use fiscal policy

to restore the economy to potential real GDP. Assuming a constant price level, Congress and the President would need to increase government purchases by
Business
1 answer:
guajiro [1.7K]2 years ago
5 0

Answer:

Congress and the President would need to increase government purchases by $500 billion.

Explanation:

Real GDP refers to the measure of a country's total economic output, which is adjusted for price changes.  It makes the comparison of GDP from year to year and from different years to be more meaningful because it shows the comparisons for both the quantity and value of goods and services.

Potential real GDP refers to the level of output that an economy can produce at a constant inflation rate.

In the scenario given above, in order to find how much the congress and president would need to increase spending by, we subtract the real GDP from the potential real GDP, thus:

$13.5 trillion - $13 trillion = $500 billion.

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In a market system, which component conveys information about what is relatively scarce and what is relatively abundant?
denis23 [38]

<span>The answer is price. The price of a good conveys about its relative scarcity or abundancy. If the price is high, the good is scare meaning you can gain money by selling extra of it, and you can save money by buying a lesser amount of it. If you act according to your self-interest, selling more and buying less of that costly good, the scarcity of that good will be toned-down. If the price of a good is low, you can exhilarated to do the contrary, thus removing any excess of the good in the market. </span>

8 0
3 years ago
U.S. appliance manufacturers find that different customs about shopping must be used to determine product design. For instance,
kvv77 [185]

Answer:

U.S. appliance manufacturers would be more likely successful if they used a <u>Transnational</u> marketing strategy

Explanation:

Transnational marketing strategy is a more personalized approach to selling and marketing with target customers need, shopping preferences and specifications put into consideration in the designing of the goods and services.

This strategy applies to the U.S. appliance manufacturers selling to different countries.

Therefore, people in Northern Europe who shop only once a week will be presented with bigger refrigerators while Southern Europeans who shop daily can opt for smaller ones.

7 0
3 years ago
20 POINTS TO SUB TO MY CHANNEL RICECRISISYT
Alex17521 [72]

Answer:

sure man

Explanation:

6 0
3 years ago
What are the factors of production required by jewellery shop to operate its business
Blababa [14]

Answer:

See explain

Explanation:

There are 4 factors of production, land labor entreprenuership and capital.

The land of the jewellery shop would be the actual land that the store is on itself. The labor of the shop would be any of the work that any employees are doing. The capital would be any goods or machinery that is used in the store like cash registers, or bulletproof glass to protect their belongings, or any tools that the store uses to help make their jewellery etc. The last and final factor entrepreneurship might be for example the owner of the store, who manages the other 3 factors to bring a profit to the store.

4 0
2 years ago
______ approach to capital budgeting discounts the after-tax cash flow from a project going to the equity holders of a levered f
lord [1]

Flow to Equity (FTE) is the approach to capital budgeting that discounts the after-tax cash flow from a project going to the equity holders of a levered firm.

An alternative capital budgeting strategy is the flow to equity (FTE) or free cash flow approach. The FTE approach merely requires that equity capital be discounted at the cost of the cash flows from the project to the equity holders of the leveraged firm. The amount of cash that a company's equity shareholders have access to after all costs, reinvestment, and debt repayment is taken into account is known as flow to equity. Free Cash Flow to Equity (FCFE) is calculated as Net Income - (Capital Expenditures - Depreciation) - (Change in Non-cash Working Capital) - (Change in Non-cash Equity) + (New Debt Issued - Debt Repayments) This is the cash flow that can be used to repurchase stock or pay dividends.

More about cash flow brainly.com/question/17406590

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4 0
1 year ago
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