Answer:
too few resources devoted to its production.
Explanation:
Base on my research, the gap that is stated in the problem is the inflationary gap. This is the amount of the real GDP go beyond potential full-employment GDP. Upon eliminating this gap the government forms a policy that will allow the potential GDP to be equal to the real GDP and higher the price level.
Answer:
The estimated Value of Share of PepsiCo stock will be $20 x $4.15 = $83.
Explanation:
Going by its Peer Average
Coca-Cola P/E ratio = $40.64 divided by $1.99 = $20.42
The Seattle based Soda producer had $33.3, this is very likely as it would incur less Marketing Costs among other Costs compared to Pepsico and Coca-Cola
Very likely Pepsico will be about $20 on average considering the size of its business and costs of doing Business just like its Peer Coca-Cola.
Therefore the estimated Value of Share of PepsiCo stock will be $20 x $4.15 = $83.