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8_murik_8 [283]
3 years ago
7

If the MPC is 0.80, all taxes are lump-sum taxes, and the equilibrium GDP is $25 billion below the full-employment GDP, then the

size of the recessionary expenditure gap is Multiple Choice $2 billion. $5 billion. $4 billion. $6 billion.
Business
1 answer:
Luden [163]3 years ago
8 0

Answer:

$5 billion

Explanation:

Calculation for size of the recessionary expenditure gap

Using this formula

Recessionary expenditure gap =MPC*equilibrium GDP

Let plug in the formula

Recessionary expenditure gap=0.20*25 billion

Recessionary expenditure gap=5 billion

Therefore the size of the recessionary expenditure gap is 5 billion

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3 years ago
A firm that decides to expand internationally based on the availability of government subsidies in the host country is pursuing
Aleksandr-060686 [28]

Some policies favor businesses, A firm that decides to expand internationally based on the availability of government subsidies in the host country is pursuing a competitive advantage.

<h3>What is competitive advantage?</h3>

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brainly.com/question/26514848

8 0
3 years ago
A marketing
Fynjy0 [20]

Answer:

True.

Explanation:

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8 0
3 years ago
PLEASE HELP TIME SENSITIVE TEST
Blizzard [7]

Answer:

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Explanation:

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8 0
4 years ago
How does a market surplus affect prices and consumer demand for a product?
s2008m [1.1K]

Answer

<u>Market surplus will lower the prices for goods and increase the consumer quantity demand for the products.</u>

Explanation

A market surplus is when there is excess supply. The quantity supply in this case is greater than the quantity demanded. Producers will be faced with a hard time to sell all their goods. This will make them lower their prices to make their products more appealing to consumers. Firms will also have to lower market prices in order to stay competitive. In response to the reduced prices, consumers will increase the quantity demanded thus moving the market to an equilibrium price and quantity. This is a case where excess supply has exerted a downward pressure on the prices of the products.



8 0
3 years ago
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