Based on the economic data given, and the fact that the government is running a deficit, the equilibrium GDP will be 336.67.
If government spending is cut to balance the budget, the new level of GDP will be 321.67.
The effect of balancing the budget will be a decrease in GDP and a slower recovery from the recesssion.
<h3>What is the equilibrium GDP?</h3>
This is given by the variable "Y" so we can find the equilibrium GDP by solving for it:
C = 50 + .7(Y – T)
Y = C + I + G - XN
C = Y - I - G + XN
Solving gives:
Y - I - G + XN = 50 + .7(Y – T)
Y - 40 - 35 + 10 = 50 + 0.7Y - 14
Y - 0.7Y = 50 + 40 + 35 - 10 - 14
0.3Y = 101
Y = 101/0.3
= 336.67
<h3>What is the new GDP if government spending is cut?</h3>
Government spending will have to be cut to a size that would make it equal to taxes so government spending becomes 20.
New GDP becomes:
= C + I + G - XN
= ( 50 + .7(Y – T)) + 40 + 20 - 10
= 271.67 + 40 + 20 - 10
= 321.67
Find out more on GDP at brainly.com/question/1384502.
I believe the answer is: Self selection
Self-selection begin with self-introspection in order to find out what we truly desire from our career and the skill sets that we have from our personalities, knowledge and experience.
After that, we pinpoint this data with the type of job that exist in the market and the criteria that is expected by the employers. Doing self selection before picking a job would increase the rate of job satisfaction.
Answer: Undercapitalization
Explanation:
Undercapitalization is defined as the situation where a person or entity of any kind does not have sufficient funds or capital to run their business and pay the costs it has. This type of situation usually occurs when the business is not selling the necessary amount of products or services to generate the amount of income necessary to meet all the payments it has.
When an entity or business is undercapitalization, in many cases they have had to take measures such as downsizing, fewer materials to create the product, or ultimately, if none of this works, having to close the business.
Answer:
Laura should focus on purchasing Index Mutual Funds and Exchanged-Traded Funds.
Explanation:
Laura should, amongst many investments’ options, focus on two particular types of investments: the first one is called index mutual funds, which have a much lower fee than mutual funds, giving the investor an investment with lower cost while having a fund that works in many ways equal to mutual funds. The second one should be exchange-traded funds, particularly because those funds are based on commissions, making it possible to charge lower fees than mutual funds.
Answer:
The maximum time guaranteed = 19.04 minutes.
Explanation:
From the given problem data, we have:
Let Y be the random variable which follows the normal distribution.
So,
Y ~ N(u = 15, SD = 2.4
Where, u = mean and SD = Standard Deviation
Let the maximum time guaranteed is = M
So,
P (Y > M) = 0.05 equation 1
Convert this equation 1 into standard normal variable, that is,
P(Y> M) = 0.05
1 - P(Y 
M) = 0.05
P(Y M) = 1 - 0.05
P(Y M) = 0.95
P
= 0.95
P ( Z 
) = 0.95 Equation 2
From the equation 2, we have,
= 1.644853627
1.644853627 value is from using the function of Excel
( =NORSINV(0.95)) = 1.644853627
So,
M = 1.644853627 + 2.4 + 15
M = 19.04
Hence, the maximum time guaranteed = 19.04 minutes.
