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d1i1m1o1n [39]
3 years ago
7

Which best describes how governments respond to changes in the business cycle?governments issue more currency.governments refuse

to pass a budget.governments change their policies.governments reduce spending.
Business
2 answers:
wlad13 [49]3 years ago
8 0

Answer:

governments change their policies.

Explanation:

Economic cycle is the name given the variations in the economy, which at some times become supercharged, with many transactions taking place, high GDP, increased employment and inflationary pressures, and in others it is in recession, when GDP decreases, economic activity slows down. and unemployment occurs. The government will make policy decisions according to the cycle scenario. In times of low production the government tends to take policies that stimulate the economy. In times of warming up, the government tends to take steps to calm the economy and control inflation.

Troyanec [42]3 years ago
7 0

I believe the answer is: Governments reduce spending.


When the government reduce its spending, the government would have more money in their budget to make various programs that can help the struggling economy. They could do this by providing incentives for the unemployed or providing loan programs for citizens who want to open a small business.

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Select the correct answer from each drop-down menu.
shtirl [24]

As the price of beef increases, consumption, which means that for the demand of beef , there is an inverse relationship between price and consumption.

Explanation:

We know that there is an inverse relationship between price and demand. If the price increases the demand for that commodity falls. On the other hand if the price decreases the demand for that commodity increases.

If the price of beef increases that leads to less demand for the consumption of beef on the other hand if the price of beef decreases which will lead to increase in the demand for the consumption of beef.

5 0
3 years ago
Suppose the demand curve for a product is given by Q = 11 - 2P + 3Ps Where P is the price of the product and Ps is the price of
Alex17521 [72]

Answer: (a) -0.1412

(b) 0.4941

Explanation:

Q = 11 - 2P + 3Ps

Where,

P - price of the product

Ps - price of a substitute good

Ps = $2.80

P = $1.20

\frac{dQ}{dP} = -2

\frac{dQ}{dPs} = 3

Price\ elasticity\ of\ demand= \frac{P}{Q}\times\frac{dQ}{dP}

Price\ elasticity\ of\ demand= \frac{1.20}{11-2P+3Ps}\times(-2)

Price\ elasticity\ of\ demand= \frac{1.20}{11-2\times1.2+3\times2.8}\times(-2)

                                                     = \frac{-2.4}{17}

                                                     = -0.1412

Cross\ Price\ elasticity\ of\ demand= \frac{Ps}{Q}\times\frac{dQ}{dPs}

                                                                 = \frac{2.8}{17}\times3

                                                                 = 0.4941

4 0
3 years ago
Demand for home computers has increased yet the price has fallen.Explain this
dexar [7]

Answer:

cost of manufacturing

Explanation:

In the old days the price to make computers was very high so to make profit computers used to be even more expensive. But as time went on people learned to use less expensive materials to make computers and competition against other companies made them lower the prices. Due to that the demand for computers has risen.

4 0
4 years ago
In​ Keynes's liquidity preference​ theory, what variables determine the demand for real money​ balances? A. The demand for real
natita [175]

Answer: the correct answer is C. the demand for real money balances depends on the nominal interest rate and real income.

Explanation:

According to Keynes the desire for liquidity or demand for money arises because of three motives:

(a) Transaction motive

(b) Precautionary motive

(c) Speculative motive

7 0
3 years ago
Money that has been or will be paid regardless of the decision whether to proceed with the project is:
bezimeni [28]

Answer:

Sunk costs.

Explanation:

Sunk costs refers to historical funds spent or incurred that cannot be recovered. Such costs are considered irrelevant during decision making which impacts on the business's future as they present no influence on present or future prospects.

Example

ABC investors decide to acquire land and develop residential houses at a location X. This decision is informed on the fact that the government had recently enacted a policy that led to an increase in demand for residential properties in that location. 6 months into construction of the residential houses, the government reviews and rescinds the policy. This leads to a sharp decline in property values in location X. ABC investors had already incurred 10 million dollars in the project. The 10 million dollars is considered sunk cost.

Sunk costs are the opposite of relevant costs because they can't be changed or recovered, as they've been spent or contracted in the past already. Hence, relevant cost are relevant for decision-making purposes but not sunk costs.

Hence, money that has been or will be paid regardless of the decision whether to proceed with the project is sunk costs.

4 0
3 years ago
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