Answer:
a) $10 billion
b) <em>For example, the investment made by the business in this question would become income in the hands of other transacting economic agents which in turn be re-spent by them.</em>
Explanation:
<em>Expenditure Multiplier is the amount by which the real GDP will change if autonomous expenditure changes by a given amount. </em>
It is calculated as follows: 1/(1-MPC).
MPC is the portion of additional income that is spent. If the MPC is 0.8, then the expenditure multiplier will be = 1/(1-0.8) = 5
Using the information given, if business investment increase by $2 billion, the resulting change in GDP would be
increase in real GDP = 2 billion × 5 = $10 billion
Explanation of the multiplier change in real GDP
<em>Real GDP increases by more than 2 billion because of the multiplier effect. This effect is implies that expenditures by made by one economic agent in a transaction becomes income in the hand of another which in turn be re-spent . This will continue in manifolds thereby increasing the total value of goods and services resulting from a single increase in autonomous spending in multiple fold.</em>
<em>For example, the investment made by the business in this question would become income in the hands of other transacting economic agents.</em>
Answer:
$212,000
Explanation:
Stockholders' equity = December 31, 2018 stockholders'equity + 2019 net income - 2019 cash dividend declarations + 2019 common stock issue
Stockholders' equity = $163,000 + $21,700 - $5,700 + $33,000
Stockholders' equity = $212,000
So, the total stockholders' equity as of December 31, 2019 is $212,000
Answer:
Congress votes to double the amount of federally subsidized student loans - this will increase the equilibrium level of human capital investments because higher education is one of the most effective ways that people can use to increase their human capital.
There is a decrease in student learning capacities - decrease the equilibrium level of human capital investments because a lower learning capacity will prevent students from reaching their full potential.
Suburban families see a decrease in wealth due to a particularly poor performing sotck market - decrease because suburban families will have less income and wealth to spend, including expenditures in education and training.
The president signs into a law a bill that will reduce discrimination in the labor market - increase because workers that were previously kept from finding employment due to discrimination will now be able to obtain jobs and acquire working experience, this increases their human capital.
The natural talents and abilities of graduating high school students rise - increase because high school graduates have become more naturally skilled and this will help them through college and in their future jobs.
Answer:
All the statements are correct.
Explanation:
A and D are correct because better transportation technology means that the government can import (purchase materials) and export (transport goods) around the world with relative ease.
B is correct because automation means that machines can replace some humans in the labor force, and machines do not have to be paid a wage.
C is correct because if the government has advanced technology at its disposal, it can be at the forefront of tecnnological changes.
Answer:
Reciprocal concessions
Explanation:
Reciprocal concessions also known as the door-in-the-face technique occurs when a person makes an initial large request and then followed up by a smaller request when the first request is not accepted by the responder. The responder then feels obligated to give in by agreeing to the conceded request.
Anya applied the reciprocal concession technique by requesting for $500 from her parents instead of the initial $5000.