Product market comparisons that focus on labor costs are likely to deserve greater weight when product demand is inelastic.
<h3>What is the product market?</h3>
The product market is defined as the marketplace where final items or services are sold to firms and the government.
It does not concern trading in raw or another intermediate substances because it concentrates on the selling of finished goods. Business enterprise market and labor market are two speeches that are related to but not interchangeable.
When product demand is inelastic, product market comparisons that focus on labor costs are more likely to be valuable.
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The amount of $25.00 billion will be the private investment spending that each $10 billion increase in government spending will crowd out.
<h3>What is the explanation on government expenditure?</h3>
When the government expenditure increased by $1 billion, the planned investment expenditure will falls by $0.20 billion., hence, for each $1 billion increase in government spending, there is a net change in intial spending of $0.2 billion
Also, the aggregate demand curve will shift to the right by the net change in spending multiplied by the multiplier, which equals 1- MPC.
Hence, the net increase in AD due to the $1 billion increase in government expenditure is equals what is known as the net multiplier.
Therefore, the amount of $25.00 billion will be the private investment spending that each $10 billion increase in government spending will crowd out.
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Answer:
A
Explanation:
Jones Mfg. has current assets of $26,900, net working capital of $8,200, long-term debt of $21,500, and total equity of $57,800. What is the equity multiplier?
Answer:
a. $437,200
Explanation:
Direct material Cost $117,700
Direct Labor $153,800
Manufacturing Overhead <u>$183,600</u>
Total manufacturing Cost $455,100
- Ending Work-in-Process <u>$17,900 </u>
Cost of Goods Manufactured <u>$437,200</u>
So, The cost of Goods manufactured was $437,200.
Answer:
False
Explanation:
The growth of 4% for 25 years would nominally signify a 100% increase and you might think that the economy has double its size. But you must take into account that’s this is a compound growth then the economy would reach the double of its size before 25 years.
Think that he initial size of the economy is 10 and it grows 4% then an annual growth will be 10,4 now the compound grow is adding up 0,4 to the initial size of 10. Then you recalculate a growth of 4% for the second year this means 10.816 grow.
If you notice the extra 0.016 increase for the second year is the effect of calculating the 4% increase based on the previous size 10 plus 0.4.
