Answer: B. regressive taxation
Explanation:
Regressive taxation is a form of taxation where people who earn higher income pay a less percentage of income as tax while those who earn less income pay a higher percentage of income as tax.
Progressive taxation is a form of taxation where people who earn higher income pay a higher percentage of income as tax and those who earn less income pay a lower percentage of income as tax.
Answer:
a) $10 billion
b) <em>For example, the investment made by the business in this question would become income in the hands of other transacting economic agents which in turn be re-spent by them.</em>
Explanation:
<em>Expenditure Multiplier is the amount by which the real GDP will change if autonomous expenditure changes by a given amount. </em>
It is calculated as follows: 1/(1-MPC).
MPC is the portion of additional income that is spent. If the MPC is 0.8, then the expenditure multiplier will be = 1/(1-0.8) = 5
Using the information given, if business investment increase by $2 billion, the resulting change in GDP would be
increase in real GDP = 2 billion × 5 = $10 billion
Explanation of the multiplier change in real GDP
<em>Real GDP increases by more than 2 billion because of the multiplier effect. This effect is implies that expenditures by made by one economic agent in a transaction becomes income in the hand of another which in turn be re-spent . This will continue in manifolds thereby increasing the total value of goods and services resulting from a single increase in autonomous spending in multiple fold.</em>
<em>For example, the investment made by the business in this question would become income in the hands of other transacting economic agents.</em>
Under a <u>premium-price emphasis</u>, a business designs products that possess unique attributes or characteristics for which customers are willing to pay more.
When businesses wish to charge more for their products than their rivals do, they employ a premium pricing approach. The intention is to make consumers believe that because the products are more expensive, they must be of superior quality than similar things. The business is staking on the assumption that the customer won't do any research to determine whether the product is really of superior quality. Marketers hope that consumers will take the brand name as a guarantee that their product is superior to that of the competition. Higher profit margins, more difficult entry barriers for rivals, and an increase in brand value across the board are all benefits of a premium pricing strategy.
To learn more about premium pricing strategy from the given link.
brainly.com/question/21104027
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Answer:
d. ad does not change.
Explanation:
Aggregate demand is defined as the total demand for finished products that is produced by a country. It is also called effective demand
In this instance aggregate demand will be a sum of demand for both computers and fighter jets. If the government decides to spend on fighter jets instead of computers, the aggregate demand will not change since it is total demand of both proucts.