Answer: The answer is as follows:
Explanation:
Potential GDP = consumption + investment + government purchases + net export
= 300 + 50 + 100 + 20
= $470
If the full-employment level of GDP for this economy is $620 billion.
In this situation, potential GDP is less than the real output or GDP at full employment level. From the above calculation, the potential GDP is $470 and GDP at full employment is $620. So, there is a gap of $150 between Potential GDP and real output.
Therefore, government should increase the spending and cut down taxes to reduce the GDP-gap.
Answer:
prices to fall according to the classical economists and unemployment to increase according to Keynes.
Explanation:
The classical economists believes that a decrease in aggregate demand for goods produced would being about fall in the prices of such goods. What this implies is that as more goods are produced, if such production is not backed by corresponding demand by consumers, the prices of such goods produced will eventually fall because supply is greater than demand.
For the Keynes, their argument is that a decrease in aggregate demand will cause unemployment to increase. This is because owners of businesses or employers would lay off their employees when goods produced exceeds the demand for such production by consumers. Here, owners of businesses pays their employees through sales of goods produced. So, when the goods produced are not purchased, then there will be excess availability of such goods; hence no sale or profit, from which salaries would be paid. The next step is to start laying off employees because employers cannot cover their running costs.
Answer:
$123,500
Explanation:
The computation of the amount reported in the financial statements is shown below
= Sales amount - the amount of sales received
= $247,000 - $247,000 × 50%
= $247,000 - $123,500
= $123,500
by deducting the amount of sale received from the sales amount we can get the amount i.e to be reported in the financial statements
Answer:
c. The investor will have a direct say in how the companies that the venture capital firm funds will be run
Entrepreneurship is the answer , hope this helps ! :)
