Answer:
b. left by $500 billion.
Explanation:
Given marginal propensity to consume, MPC = 0.8
Marginal propensity to consume + Marginal propensity to save = 1
MPC + MPS = 1
0.8 + MPS = 1
MPS = 1-0.8
MPS = 0.2
Now, the government multiplier = 1/MPS
The government multiplier = 1 / 0.2 = 5
Total fall in aggregate demand = Government multiplier × Government purchases
= 5 ×100
= $500
Since there is a fall in spending so the aggregate demand curve will shift leftwards.
Therefore, the correct option is b. left by $500 billion.
Answer:
a EPLS is an electronic directory of individuals and organizations that are not permitted to receive federal contracts or assistance from the United states government.
Explanation:
you would need one for anything
Answer: Finite loading approach
Explanation: In a finite loading approach, the work centers are scheduled to load up to a predetermined capacity amount. This is a type of approach that is used in manufacturing process that are heavily dependent on a single cost center.
Thus, we can conclude that the right answer for the given case is finite loading approach.
Answer:
Expected Loss will be $3
Explanation:
Expected Loss can be calculated by multiplying the probabilities to Net expected outcome.
Probabilities
Prize ( $460) = 1 / 100
Prize ( $80 ) = 2 / 100
Prize ( $20 ) = 4 / 100
No prize = 100/100 - (1+2+4)/100 = 93/100
Expected value = [( 460 - 10 ) x 1/100 ] + [( 80 - 10 ) x 2/100 ] + [( 20 - 10 ) x 4/100 ] + [( 0 - 10 ) x 93/100] = 4.5 + 1.4 + 0.4 - 9.3 = -$3
Answer:
0.079
Explanation:
Price elasticity of demand using midpoint formula can be calculated as follows
Formula
Elasticity of demand = (change in quantity/average quantity)/(change in price/average price)
Calculation
Elasticity of demand = (600/10,900)/(-2.1/3.05)
Elasticity of demand =-0.055 / -0.688
Elasticity of demand =-0.079
working
Change in price (2-4.1) = -2.1
Average price (2+4.1)/2=3.05
Change in quantity (11,200-10600) = 600
average quantity (11,200+10,600)/2 = 10,900
The elasticity of demand is inelastic as the elasticity is below 1.
