Explain some of the different categories of “new products” CVS is offering.

Consider planned aggregate expenditure model: planned investment, I = $60 billion; government spending G = $50 billion; Taxes ar

Dimas [21]

Answer:

The answer is (a) Y = 520, (b) Y = 2,720, (c) (I) Y = 560, (II) Y = 560, (d) (I) Y = 560, (II) M = 3, (e) (I) Y = 560, (II) Government Multiplier = 40billion, (III) Y = 700

(a)

Explanation:

(a)

Given that

Y = I + G + ca + 0.75 ( Y - T)

Where ca = autonomous consumption, Y - T = disposable income

Substitute into the equation

Y = 60 + 50 + 80 + 0.75 ( Y - 60)

Rearrange the equation

Y - 0.75Y = 60 + 50 + 80 - 60

Factor out the variable Y

(1 - 0.75) Y = 190 - 60

Simplify

0.25Y = 130

Divide both sides by 0.25

0.25Y/0.25 = 130/0.25

Y = 520

(b)

Y = C + I + G

Since the value of output depends on the household's intention to consume

Substitute into the equation

Y = 80 + 0.75 + 600

Rearrange the equation

Y - 0.75Y = 80 + 600

Factor out the variable Y

(1-0.75)Y = 680

Simplify

0.25Y = 680

Divide both sides by 0.25

0.25Y /0.25 = 680/0.25

Y = 2,720

(c)I

Y = C + I

Y = 80 + 60

Rearrange the equation

Y - 0.75Y = 80 + 60

Factor out the variable Y

(1-0.75)Y = 80 + 60

Simplify

0.25Y = 140

Divide both sides by 0.25

0.25Y /0.25 = 140/0.25

Y = 560

(II)

Equilibrium condition S = I

C = 80 + 0.75Y =60

Rearrange the equation

Y - 0.75Y = 80 + 60

Factor out the variable Y

(1-0.75)Y = 80 + 60

Simplify

0.25Y = 140

Divide both sides by 0.25

0.25Y /0.25 = 140/0.25

Y = 560

(d)(I)

Y = I + G + ca + 0.75 (Y -T )

Where ca = autonomous consumption, Y - T = disposable income

Substitute into the equation

Y = 60 + 50 + 80 + 0.75 (Y -50)

Rearrange the equation

Y - 0.75Y = 60 + 50 + 80 - 50

Factor out the variable Y

(1-0.75)Y = 190 - 50

Simplify

0.25Y = 140

Divide both sides by 0.25

0.25Y /0.25 = 140/0.25

Y = 560

(II)

Tax Multiplier = -MPC/(1-MPC)

Because there is a decrease in tax,then the multiplier will be positive, because there is now more money in the circular flow

M= MPC /(1-MPC )

M = 0.75/(1-0.75)

0.75/0.25

= 3

The tax multiplier is 3

(e)(I)

Y = I + G + ca + 0.75 (Y -T)

Substitute into the equation

Y = 60 + 60 + 80 + 0.75 (Y -60)

Rearrange the equation

Y-0.75Y = 60 + 60 + 80 - 60

Factor out the variable Y

(1-0.75)Y = 200 - 60

Simplify

0.25Y =140

Divide both sides by 0.25

0.25Y /0.25 = 140/0.25

Y = 560

(II)

K = ▲Y/▲G

K= 1/1-MPC

K = 1/1-0.75

K = 1/0.25

K = 4

K = ▲Y/▲G

▲G = (60-50) =10

4 = ▲Y/10

Cross multiply

▲Y = 4 × 10

▲Y = 40 billion

(e)(III)

How would the answer change, if consumption function were

C (Y -T )=80billion + 0.80 (Y -T )

Y = I + G + ca + 0.75 (Y -T )

Substitute into the equation

Y = 60 + 50 + 80 + 0.80 (Y -50)

Rearrange the equation

Y - 0.80Y = 60 + 50 + 80 - 50

Factor out the variable Y

(1-0.80)Y = 190 - 50

0.2Y = 140

Divide both sides by 0.2

0.2Y /0.2 = 140/0.2

Y = 700

7 0

4 years ago

For lunch, Maria eats only salads or vegetarian burgers. Her weekly food budget is $36. Each salad costs $6 and each vegetarian

nignag [31]

Answer:

The correct answer is C.

Explanation:

Supposing that more is preferred to less, Maria would never choose a point where she's below her budget line. That is, Maria will spend all of her rent.

Therefore we can already discard possibilities like:

A. Because $M=6*(6)+3*(1)=33$ ⇒ $33<$36

The individual is not maximizing utility is she were to choose this bundle.

B. Because $M=6*(4)+3*(6)=42$ ⇒ $42>$36

This bundle is beyond what Maria can afford.

Further, assuming that Maria has convex preferences, she'll choose a point where she buys more of both goods rather than specializing in the consumption of one of them. That leaves bundle D aside over bundle C because even though both bundles satisfy her budget condition M=$36, bundle C provides more utility to Maria than bundle D for being located in a more centric solution along her budget line.

6 0

3 years ago

A company that manufactures health foods doesn't want to list certain

Lelechka [254]

Because the company does not lists the ingredient in the product, then, this is an example of violation to <u>disclosure </u>aspect of consumer protection laws.

<h3>What is consumer protection laws?</h3>

The Consumer protection law includes different legislation which intended to prevent businesses owners from engaging in fraud or reducing quality of product.

One of the Consumer protection law makes its necessary for the manufacturer to disclose the full ingredient they use in producing the product.

In conclusion, the scenario is an example of violation to <u>disclosure </u>aspect of consumer protection laws.

Therefore, the Option B is correct.

Read more about consumer protection laws

<em>brainly.com/question/1862829</em>

3 0

3 years ago

Beta Corporation is planning operations for the coming year. Beta uses normal costing and applies overhead on the basis of direc

Feliz [49]

Answer:

The correct answer is $80 per hour.

Explanation:

According to the scenario, the given data are as follows:

Estimated overhead cost = $10,000,000

Estimated direct labor hours = 125,000 hours

Direct labor cost amount = $3,200,000

Direct material cost = $23,000,000

So, we can calculate the predetermined overhead rate by using following formula:

Predetermined overhead rate = Estimated overhead /Estimated Direct labor hours

= $10,000,000 / 125,000 hours

= $80 per hour

Hence, the predetermined overhead rate is $80 per hour.

4 0

3 years ago

Please help im on a timer

Dafna1 [17]

Answer: are higher than average, because the job sector is rapidly growing.

Explanation: More and more people are using technology by the percentage so it goes up often

This is the option out of all that make sense, and i just took the test and it is correct.

7 0

3 years ago

Explain some of the different categories of “new products” CVS is offering.​

Explain some of the different categories of “new products” CVS is offering.