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Romashka [77]
2 years ago
13

For a model economy, the mpc (marginal propensity to consume) is 0.8. Current GDP is $100 million. Potential GDP is $60 million.

To reach full employment (reduce inflationary gap), government spending must g
Business
1 answer:
saul85 [17]2 years ago
5 0

Answer:

To reach full employment (reduce inflationary gap), government spending must fall by $8 million.

Explanation:

Multiplier = 1 / (1 - mpc) = 1 / (1 - 0.8) = 5

Output gap = Current GDP - Potential GDP = $100 - $60 = $40 million

Amount of change in government expenditure needed = Output gap / mpc = $40 / 5 = $8 million

Since the Potential GDP is less than the Current GDP, this implies that the government spending must fall by $8 million to reach full employment.

Therefore, to reach full employment (reduce inflationary gap), government spending must fall by $8 million.

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The cost of ending work in process inventories and of units transferred out of the Base Fab Department in April is  $851,00  and $999,000and  $1850,000

The calculation of this question and working of solutions is in tabular form which is attached to this answer.

What is Cost?

The cost is of two types - Variable and Fixed . Variable costs exchange based on the amount of output produced. Variable costs may include labor, commissions, and raw materials. constant costs continue to be the same no matter production output. fixed charges may additionally include hire and rental bills, coverage, and interest payments.

Learn more about cost brainly.com/question/13165105

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5 0
2 years ago
When Luke, Larry, and Lance lost their jobs during the recent recession, they pooled their resources, borrowed a little more, an
stepladder [879]

Answer:

a) Limited liability company

Explanation:

Considering the options given, as an advisor the form of business that I would recommend is: limited liability company that is a structure in which the owners  are not responsible with their personal assets for the company's debts as the three owners are concerned about this risk.

I would not advise the other forms of business because the sole proprietorship is a firm that is run by one person, the general partnership is a structure in which two or more people agree to share unlimited liability which means that they share all their personal assets and are responsible for any debt the company has with them and the master limited partnership is a company that trades securities in the market.

4 0
3 years ago
How does increasing the size of your down payment impact your auto loan?
Gnom [1K]

Answer:

The correct answer is letter "C": It decreases the size of your principal and decreases the total cost of the loan .

Explanation:

Down payments are the initial sums debtors pay when requesting a credit. Down payments are usually mandatory but the debtor can offer the sum voluntarily.

<em />

<em>If the sum provided in the down payment is higher than what is requested, the amount of the principal will be lower. If the amount of the principal is lower, the total of the interest paid in the course to the loan will be lower as well, thus, the cost of the loan will be reduced.</em>

5 0
3 years ago
1. Why might a company claim that the total cost of employing a person is $15.30 per hour
gavmur [86]
Companies often do work on a cost-reimbursement basis. That is, Company B reimburses Company A for the cost of doing work for Company B. Suppose your company has a contract that calls for reimbursement of direct materials and direct labor, but not overhead. Following are costs that various organizations incur; they fall into three categories: direct materials (DM), direct labor (DL), or overhead (OH). Classify each of these items as direct materials, direct labor, or overhead.
6 0
3 years ago
Park co. shipped inventory on consignment to recreations co. that cost $50,000. recreations paid $1,200 for advertising that was
antiseptic1488 [7]

The answer to this question is 30/100*$50,000 = $15,000 remains on the balance sheet at the end of the year.

The $ 1200 paid for advertisement is not included in the cost of inventory.

<span>Cost of inventory=cost of inventory+ any other cost needed to get inventory in place of sale.</span>

6 0
3 years ago
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